Can anyone explain why Toyota dealers still seem to have such low inventory of cars and trucks? I thought the supply chain issues were resolved by now?
Demand is still higher than supply.
Toyota is still one of the top-selling brands. Other manufacturers might have more stock because their cars aren’t selling as quickly as they hit the lot.
https://www.goodcarbadcar.net/2024-us-auto-sales-figures-by-brand-brand-rankings/
There are also some stop sales due to safety recalls on certain models.
@Freddie
It’s kind of crazy to see it still like this. I do wonder if they might be reducing production on purpose to create more demand?
Teo said:
@Freddie
It’s kind of crazy to see it still like this. I do wonder if they might be reducing production on purpose to create more demand?
Well, from what I’ve seen, they’ve actually sold more cars year-to-date than last year, so I doubt they’re cutting back on purpose.
They are planning to open a new plant in the US by 2026, which could help with the production of hybrids and EVs.
@Freddie
That’s good to hear! Those are exactly the types of cars I’m interested in.
Teo said:
@Freddie
It’s kind of crazy to see it still like this. I do wonder if they might be reducing production on purpose to create more demand?
Yeah, it’s possible. Reducing supply could mean higher profit margins for dealerships.
@TundraTroopers1
You guys are getting downvoted, but it’s hard to believe that some folks here don’t realize Toyota is still a corporation. And like any corporation, their goal is to maximize profits. But I think Toyota is one of the better ones since they aren’t based in the US. However, I do think some dealers are playing a role in the shortage by not ordering as many cars to keep demand up and charge more for popular models.
@Joss
If they wanted to make more money, they’d try to sell as many cars as they could. Holding back production wouldn’t make sense—it would just mean they’re missing out on sales. No smart business would do that.
@Corey
But what if they can sell fewer cars and still make the same profit? That could be a smart move.
Teo said:
@Corey
But what if they can sell fewer cars and still make the same profit? That could be a smart move.
Not really. The markup usually benefits the dealership, not Toyota itself. Toyota’s goal is to sell as many units as possible to maintain profits and market share. Artificially limiting production just wouldn’t make sense from their perspective.
Please follow the forum guidelines.
@Corey
All three of you make good points, but I don’t think it’s fair how downvoted this discussion got.
Shaye said:
@Corey
All three of you make good points, but I don’t think it’s fair how downvoted this discussion got.
People tend to downvote when they disagree with a viewpoint, it’s just how it goes here.
@Corey
Yeah, but the most downvoted comment was just a question. Seems a bit harsh.
@Joss
Look at the new Sequoias as an example. There’s no reason for limited inventory at this point. The new model has been out for over two years, and demand isn’t that high. Yet, I’ve seen the same two Sequoias sitting at my local dealer for two months, both with a $7,000 markup.
@Joss
Yeah, it seems like people don’t like it when you question these things… lol
For context, they sell around 800 Camrys every single day. And that’s just one model.
Palmer said:
For context, they sell around 800 Camrys every single day. And that’s just one model.
Wow, that’s a lot!
Rey said:
@WilliamMia
No way this is accurate. Where’s the RAV4? It’s supposed to be their best-seller, not a Lexus.
I think this is measuring how long cars stay on the lot, not total sales. More RAV4s might sit on the lot because there’s high supply, even though demand is also high.
Market day supply (MDS) is a metric used to estimate how long a vehicle will remain in inventory and how quickly it will sell.
I work at a Toyota factory, and we’ve had very little overtime for the past year, which is unusual for us, especially in summer when we normally work a lot. I don’t understand why, considering our models are in demand and there’s a waiting list for many of them.