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While demand for fuel-efficient compact cars and hybrids is on a rapid rise, Toyota is struggling to meet demand due to shortages of popular models such as the Prius hybrid and the Corolla. Toyota’s car sales fell 9.4 percent in June. On the other hand, rival Honda reported a 13.8 percent gain in overall U.S. sales mainly due to a record demand of the Honda Fit and the Civic Sedan.

Toyota’s Prius, the top-selling hybrid in the U.S., fell 26 percent as dealers struggled to have the vehicle available in their inventory and customers faced a six-moth waiting list. Toyota hopes to satisfy that demand...

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Toyota struggling to meet small car and hybrid demand

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