Toyota Motor Corporation has once again solidified its position as the world's largest car manufacturer, achieving this distinction for the fifth consecutive year.
In 2024, the Japanese automaker recorded sales of 10,159,336 vehicles, marking a 1.4% decrease from the previous year. ndtv.com
Despite this decline, Toyota maintained a substantial lead over competitors, with Volkswagen Group, its closest rival, selling just over 9 million vehicles during the same period. just-auto.com
Navigating Market Challenges
The reduction in Toyota's global sales can be largely attributed to a significant downturn in the Japanese market, which experienced a 19.7% decline in 2024. This downturn was primarily due to production stoppages at its small car subsidiary, Daihatsu, following a test and certification issue scandal. just-auto.com
However, Toyota's performance in international markets remained robust, with sales outside Japan reaching a record 8,717,494 units. best-selling-cars.com
Strategic Focus on Electrification and Innovation
Toyota's commitment to electrification and innovation has been pivotal in sustaining its market leadership. The company has adopted a multi-pathway approach to carbon reduction, encompassing hybrids, plug-in hybrids, battery-electric vehicles (BEVs), and hydrogen fuel-cell technologies. In Europe, this strategy led to record sales, with Toyota selling 1,128,948 vehicles in 2024—a 3% year-on-year increase. Notably, 73% of these sales were electrified vehicles, reflecting a 9% rise from the previous year. newsroom.toyota.eu
In the United States, Toyota is making significant investments to bolster its electrification efforts. The company announced a $1.3 billion investment in its Kentucky facility to support future electrification initiatives, including the assembly of an all-new, three-row battery-electric SUV tailored for the U.S. market. pressroom.toyota.com
Additionally, Toyota is advancing its battery technology through a partnership with Idemitsu Kosan to develop all-solid-state batteries, which promise longer driving ranges and shorter charging times compared to traditional lithium-ion batteries. A new lithium sulphide plant in Chiba, Japan, is slated for completion by June 2027 to support this initiative. reuters.com
Global Production and Future Outlook
After a challenging year, Toyota's global production showed signs of recovery, with a 6% increase in January 2025—the first year-on-year rise in twelve months. This uptick was driven by a 22% surge in domestic production, following the resolution of the previous year's certification scandal, and a 3% rise in North American production, notably in Mexico. reuters.com
Looking ahead, Toyota plans to establish a Shanghai-based electric-vehicle subsidiary to develop and produce Lexus-branded battery EVs, aiming for an annual production capacity of 100,000 vehicles starting in 2027. wsj.com
The company is also proceeding with a $13.9 billion battery plant in North Carolina, underscoring its commitment to the U.S. EV market. ft.com
Balancing Innovation with Employment Considerations
While Toyota accelerates its electrification strategy, the company remains mindful of the broader implications of a swift transition to an EV-only future. Chairman Akio Toyoda has cautioned that such a shift could lead to job losses, particularly for those involved in engine-related technologies and the automotive supply industry. He emphasizes the importance of a balanced approach that considers both environmental goals and employment stability. reuters.com
Conclusion
Toyota's sustained leadership in the global automotive industry is a testament to its strategic adaptability and commitment to innovation. By embracing a diversified approach to electrification and making substantial investments in new technologies and production capabilities, Toyota is well-positioned to navigate the evolving landscape of the automotive sector while maintaining its core values of quality and reliability.