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Home / Business / Companies / Manufacturing

Toyota warns of vehicle delivery delays following 'global logistics issues'

NZ Herald
10 Dec, 2020 11:43 PM2 mins to read

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Toyota buyers face long delays in receiving their cars. Photo / Getty Images

Toyota buyers face long delays in receiving their cars. Photo / Getty Images

Car manufacturer Toyota is warning of vehicle delivery delays following global disruption to supply chains.

The Japanese multinational said that despite orders for new Toyota vehicles growing in New Zealand due to consumer buying confidence and new model launches, delivery times are being delayed by a range of supply issues overseas.

"The effects of Covid-19, closed borders and delayed shipping and logistics into New Zealand are severely impacting all operational areas of our business," said Neeraj Lala, chief executive of Toyota New Zealand.

"We have seen greater than a 30 per cent reduction in our new and used vehicle sales due to the closure of the borders, and we are forecasting a minimum of ten years impact to our overall value chain including reduced parts and service."

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Congested ports are the main cause of vehicle supply delays, although this has been exacerbated by high global demand for new vehicles, the company said.

"There is also further disruption in logistics with global shipping delays impacting new vehicles, used vehicles from Japan and parts, which has an effect on delivery schedules to customers in New Zealand."

It warns that deliveries into New Zealand are delayed by an average of six weeks due to production and international shipping constraints.

"We are doing everything we can, but global demand and supply restrictions combined with shipping delays are fuelling customer frustration. We are providing customers with updates as often as we can but these timeframes are fluid," Lala said.

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The delays were affecting most new models, including the 2021 Hilux and RAV4 hybrids experiencing higher than normal wait times around the world, not just New Zealand.

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