(Yicai Global) Nov. 16 -- The global chip shortage has delayed delivery of the latest car model from the joint venture of GAC Group and Toyota Motor, with dealers in China appearing to take advantage of the supply shortfall to hike prices.

Sierra model buyers can “choose the existing premium models or wait in line” until about next August, an executive in charge of a GAC Toyota 4S showroom in southern Guangzhou told Yicai Global.

But the premium models are generally those with prices that have been raised due to the addition of optional extras and services. These cars can cost CNY30,000 (USD4,700) to CNY80,000 more than the standard version.

To raise prices some 4S dealers are pursuing a bundling strategy, which includes adding in-car decorations, various auto configurations or the purchase of after-sales services. To avoid penalties under the Anti-Unfair Competition Law, they make sure to state the pricing of these additional services, but encourage buyers to pick these services in order to complete purchases quickly.  

“We’ve stressed many times that the dealers cannot hike the prices, as we producers don’t allow such things to happen,” a GAC Toyota executive told Yicai Global. But he also said it is hard for carmakers to do anything about it if customers are willing to pay more for extra services or features due to a scarcity of new cars.  

The official also denied that delayed deliveries are a deliberate hunger marketing strategy by GAC Toyota, stressing that the delays are due to production being affected by the chip shortage.

He said the first batch of new Siennas preordered in August will not be delivered until December, with the total number delivered this year expected to reach 5,000 to 6,000. The maker’s guide pricing for the Sienna ranges from CNY300,098 (USD47,045) to CNY400,058, Yicai Global learned.

The slump in GAC Toyota’s output and sales volume reached 40 percent in September, but the drop was only 15 percent last month as the chip shortage has eased somewhat, according to GAC Group. 

Editors: Tang Shihua, Tom Litting