For the fifth consecutive year, Toyota Motor Corporation maintained its position as the world’s best-selling automaker, delivering 10.8 million vehicles in 2024. Despite securing the top spot, Toyota’s global unit sales, including those from subsidiaries Daihatsu and Hino Motors, saw a 3.7% decline due to market challenges, particularly in Japan.
The company faced headwinds in its home market following governance concerns related to certification test procedures at Daihatsu, leading to a sharp decline in domestic sales. Meanwhile, Volkswagen Group, Toyota’s closest rival, sold just over 9 million vehicles, marking a 2.3% decline as it focused on cost-cutting and price competition, particularly in China.
Toyota’s parent-only sales, covering the Toyota and Lexus brands, fell by 1.4% to 10.2 million units, largely due to double-digit declines in the Japanese market. However, strong demand for hybrid models in the United States helped offset some losses. In China, Toyota’s sales dropped 6.9%, reflecting the increasing price competition in the country’s highly competitive automotive sector. Despite this, Toyota’s hybrid models continued to drive overall sales, making up 40.8% of the company’s parent-only vehicle sales. In contrast, battery electric vehicles (BEVs) accounted for just 1.4%, highlighting Toyota’s ongoing focus on hybrid technology over full electrification.
Volkswagen, ranking second in global sales, also faced cost-cutting measures and a pricing war in China, impacting its overall performance. The Chinese market remains a battleground, with automakers navigating shifting consumer preferences and aggressive price reductions.
Toyota’s ability to retain its market leadership despite sales declines underscores the company’s strategic commitment to hybrid technology. While many automakers are prioritizing the shift to fully electric vehicles (EVs), Toyota has positioned hybrids as a transitional solution, balancing market demand, regulatory pressures, and consumer preferences.
With growing industry competition, Toyota’s hybrid-first approach could signal a broader trend, where automakers focus on hybrid models as a stepping stone to full electrification. Meanwhile, the price war in China continues to shape global automotive sales, forcing manufacturers to adopt flexible pricing and product strategies to sustain market share.
