“4 years for the Lancel, 1 year for the Jimny! SUV delivery delays “”not only due to lack of semiconductors””, but also the root cause
Delivery times for popular SUVs are more than 6 months across the board!
As has been the trend over the past few years, delivery times for new cars are increasing. In the past, it often took one to one and a half months from the time of signing a contract until the vehicle was delivered, even if it was not a stock vehicle, but now even two months is one of the shortest.
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When inquiring at dealerships about the delivery time for new cars, the response is often, “”More and more models are taking six months.
New Toyota “”Land Cruiser”” said to take four years for delivery.
The general press cites a “”shortage of semiconductors”” as the reason for the delay in delivery, but developers at automakers have another reason for the delay.
Semiconductors are widely used in air conditioners and other components of automobiles, and if there is a shortage of supply, the delivery date for the entire fleet will be extended. This is true, but the shortage of semiconductors is not the only reason for delivery delays.
There are also shortages of wire harnesses (i.e., electric wires that transmit electrical signals), paints, resin products, and various units that combine multiple pieces of equipment, etc. The Shanghai lockdown (city blockade) due to the spread of the new coronavirus has also affected delivery dates.
There are a variety of circumstances behind the delivery delays, and it is not a simple matter.
Looking at the status of delivery delays, there are also differences by vehicle category. Some light cars can reach six months or more, but many can be delivered in two to four months. Conversely, many SUVs have longer models.
We asked dealers about the delivery time for SUVs and found the following situations (as of early May 2022).
● Toyota
Rise Hybrid: 8 months
Yaris Cross: 6 months or more
Corolla Cross Hybrid: 10 months
Land Cruiser: 4 years or more
Honda
Vezel e: HEV: 6 months or more (PLaY is suspending orders)
Suzuki
Jimny: 1 year or more
Across the board, the delivery time for the mainstay SUVs is 6 months or more. And when we asked dealers, we found that the circumstances of delivery delays differed by model.
A Toyota dealer said, “”The Rise has a hybrid added to it.
The Rise has been selling well due to the addition of the Hybrid, which has resulted in longer delivery times.
The Yaris Cross and Corolla Cross are largely affected by semiconductors and other factors, while the delivery date for the Land Cruiser was unknown immediately after its launch.””
Regarding the delivery date of the Land Cruiser, the developer added, “”The Land Cruiser is a product for overseas markets. The overwhelming majority of sales are in Middle Eastern countries, and the new model is so popular that the number of units supplied to Japan has decreased,”” he explained.
In other words, before the shortage of semiconductors, the number of units supplied to the domestic market was low in relation to demand, and delivery dates were extended for a short period of time. The cause of the delay in Land Cruiser delivery was a production plan that was far below demand.
Four years for the Lancre, one year for the Jimny! Root Cause of Delayed SUV Delivery “”Not Just Lack of Semiconductors
Jimny Delivery Delay Not Resolved by Increased Production
The Vesel, including the best-selling e:HEV/X grade, is also more than six months away, and as mentioned above, orders for the e:HEV/PLaY have been halted.
A Honda dealership explained, “”The delivery time for the Vesel is generally long, and among them, the PLaY has reached more than a year, so we have suspended orders. the PLaY comes standard with an exclusive panorama roof (glass roof) and the production scale was small, but because there were more orders than expected for it, the delivery time was extended and We had to stop accepting orders,”” he explains.
Suzuki “”Jimny”” production could not keep up even with increased production
The delay in delivery of the Vezel is also a result of manufacturers’ misreading of demand. In the recent domestic market, the popularity of compact SUVs such as the Vezel has skyrocketed, but because they did not have sufficient production capacity, delivery times have been extended, and furthermore, the e:HEV and PLaY have become “”impossible to buy even if you wanted them.
In addition, the Vesel used to be produced at the Yorii Plant (Saitama Prefecture), but now it has been moved to the Suzuka Plant (Mie Prefecture), the same plant that produces the N-BOX and other minicars.
Some dealers have asked, “”Isn’t the Suzuka Plant overcrowded, affecting the delivery time of the Vezel?”” Some dealers have asked, “”Is the Suzuka Plant overcrowded, and is this affecting the delivery schedule of the Vezel?
Another Suzuki SUV that has been experiencing long delays in delivery is the Jimny.
Delivery times have almost consistently reached a year to a year and a half since the current model was launched in 2018, but the delivery delays for the Jimny that began before then are a production scale issue, since the new Corona virus did not start causing delivery delays until after 2020.
Nevertheless, Jimny put more effort into increasing production compared to other SUVs. The number of units reported immediately after its launch was about 1,800 per month, but in 2021 it will reach just under 3,300. Despite the nearly doubled production, delivery times have not shortened.
Regarding this delay in Jimny delivery, a Suzuki dealer commented, “”We have the impression that demand for Jimny will increase the more we increase production. We are seeing more and more Jimny’s on the streets, and more and more customers want one, so the demand is not decreasing,”” says a Suzuki dealer.
If the popularity of the product is so strong, can’t the production line be increased further?
We asked a product planner at the manufacturer about this point.
We asked a product planning manager from the manufacturer about this point: “”The Jimny is a product that makes customers wait a long time, so we would like to increase production and keep delivery times short, but if we add more production lines, we will have to maintain the same production pace for a long time afterward.
However, if we expand the production line, we will have to maintain the same production pace for a long time afterward. If production volume decreases, we will have to have extra production facilities, and considering the future demand for the vehicle, we cannot take the plunge into a major production increase.
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SUVs, which have enjoyed high popularity in recent years, have experienced delivery delays for various reasons, the root cause of which is that the scale of production is small in relation to demand. The delivery schedule has been further delayed due to the impact of the new Corona virus.
This negative impact has also spread to the used car market, with prices of used Land Cruisers and Jimneys exceeding the prices of new vehicles for the current model. As a result of the scarcity value, used cars are sold at a so-called premium price.
Moreover, the current model’s used car prices have led even the previous generation’s used cars to be sold at higher prices.
Delays in the delivery of popular cars disrupt not only the new car market but also the used car market.
It is important for manufacturers to accurately grasp the demand in the domestic market and produce accordingly, rather than focusing solely on overseas markets.”