Toyota’s Global Sales Performance
Toyota Motor Corp. has successfully defended its position as the world’s leading car manufacturer for the fifth consecutive year, despite a slight decline in global sales in 2024. The Japanese automaker sold a total of 10.8 million vehicles, including sales from its subsidiaries Daihatsu Motor Co. and Hino Motors Ltd. Although this figure represents a 3.7% decrease from the previous year, it was still sufficient to outpace its closest competitor, Volkswagen AG, which sold just over 9 million cars, marking a 2.3% drop compared to the previous year.
Challenges Faced by Toyota
Toyota Motor faced significant challenges throughout 2024. The company struggled with safety scandals involving two of its subsidiaries, which led to production disruptions lasting several months. Despite these setbacks, Toyota managed to maintain its lead over Volkswagen, benefitting from the consistent demand for its hybrid and gasoline-powered vehicles. However, the rise of electric vehicle (EV) competition, particularly from China’s BYD Co., has started to reshape the global auto market. BYD, which sold 4.3 million vehicles, including 1.8 million electric cars, saw a 41% increase in sales over the previous year, signaling a shift in consumer preferences toward electric mobility.
Toyota’s Electrification Plans
While Toyota Motor continues to lead in global car sales, its performance in the electric vehicle sector remains modest. In 2024, the company sold just 139,892 fully electric vehicles, a small fraction of its total sales. In comparison, hybrids made up over 4.2 million of Toyota’s global sales. To keep pace with the growing EV market, Toyota has committed to selling 1.5 million EVs annually by 2026, with a long-term goal of reaching 3.5 million by 2030.
These ambitions are part of Toyota Motor’s broader strategy to reduce its carbon emissions by 50% by 2035 and achieve carbon neutrality by the middle of the century. However, the company has adjusted its electrification targets by including hybrid vehicles in its future sales forecasts, reflecting a more cautious approach to the electric vehicle shift compared to some competitors.
