Toyota tells dealers to prepare for more inventory

Toyota is revving up to ramp up its manufacturing, urging its U.S. dealer network to get prepared for more vehicles to sell on showroom floors—with more than 20 new, refreshed, or special edition models set to debut in 2025.    

The details: The Japanese automaker’s plans to increase its vehicle output were outlined in a recent virtual meeting with Toyota executives and retailers after the brand’s make meeting at NADA was upended by the snowstorm in New Orleans during the week of the event

• Toyota built more than 2 million vehicles in North America in 2024 and plans to expand that number, says brand head David Christ, as reported by Automotive News.

• The automaker experienced a nine-month consecutive global decline in production due to the impact of the safety certification issue tied to the Daihatsu scandal and problems with other Toyota models. 

Zooming in: The call for dealers to prepare for more inventories comes on the heels of a pretty robust sales year for the manufacturer, despite the stop-sales of the Toyota Prius stemming from faulty rear-door latches and the Toyota Grand Highlander and Lexus TX due to airbags.   

• Toyota’s year-end 2024 US sales were 2,332,623 vehicles, an increase of 3.7% on a volume basis and an increase of 3.1% on a daily selling rate (DSR) basis compared to 2023.

• The automaker’s 2024 electrified vehicle sales were 1,006,461, up 53.1%, representing 43.1% of total sales volume.

• Toyota Motor North America’s Lexus division recorded its best-ever full-year sales result in the 35-year history of the luxury brand. 

Looking ahead: Toyota says it will introduce roughly 24 all-new, refreshed, or special edition Toyota and Lexus vehicles and start battery production at its new $13.9 billion North Carolina facility to meet future demands of our customers.

Why it matters: Toyota’s aggressive push to expand its lineup could fuel another strong sales year and solidify its hybrid dominance. But the real test will be balancing innovation with reliability. After a bruising year of recalls and production scandals—Toyota must prove it can scale up without sacrificing the quality and trust that built its reputation.

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