New Toyota RAV4 Faces U.S. Supply Crunch as Buyers Wait Six Months or More

Demand for the new-generation RAV4 appears to have exceeded Toyota's expectations. The redesigned SUV is now facing a serious supply shortage in one of its most important North American markets: the United States.

Dealers say customers are being told to wait more than six months for their vehicles, while one of the country's largest Toyota dealerships has a waiting list of as many as 800 buyers. With vehicles in short supply, some customers are reportedly abandoning their orders and turning to competing brands.

The shortage is severe enough that dealers have little opportunity to build up RAV4 inventory. Vehicles are being sent to customers shortly after leaving the assembly line rather than sitting on dealer lots.

Longo Toyota in California offers a telling example. The dealership sold more than 200 RAV4s in May, yet its waiting list still had as many as 800 customers afterward. Some buyers say they have already been waiting more than six months since placing their orders.

Toyota attributes the shortage to preparations for production of the new RAV4. Before deliveries to the North American market began, the automaker spent considerable time upgrading and fine-tuning production lines in Japan and Canada. Production is now also being added at Toyota's plant in Georgetown, Kentucky, which should increase available output.

For now, production capacity isn't enough to fully meet demand. Buyers unwilling to wait half a year are turning to other models and brands. According to media reports, Toyota may have already lost tens of thousands of potential orders because of the RAV4 shortage.

The supply problems have also affected the balance of power in the segment. The Honda CR-V has moved into first place in North American sales, overtaking the RAV4, with Toyota's limited supply cited as one of the factors behind the shift.