Toyota maintains its position as the world's leading automobile manufacturer for the fourth consecutive year, outpacing Volkswagen AG in passenger vehicle sales throughout 2023. The global sales, inclusive of subsidiaries Daihatsu Motor Co. and Hino Motors Ltd., surged by 7.2%, reaching a record-breaking 11.2 million cars, with production output rising by 8.6% to 11.5 million units. In comparison, VW's deliveries increased by 12%, reaching 9.24 million units in the same period.
Despite grappling with the global shift toward electric vehicles (EVs), Toyota's rebound from supply chain challenges and sustained demand in North America and Europe contributed to increased production and profits abroad. The steady popularity of hybrids globally and robust demand in the domestic market further bolstered the automaker's performance.
While Toyota's dominance is evident in the 2023 figures, it's worth noting that China's BYD Co. made significant strides, surpassing Tesla Inc. as the leading electric car manufacturer. BYD, exclusively focused on EVs and plug-in hybrids, sold approximately 3.02 million units in 2023, surpassing Toyota's sales of 104,018 battery EVs.
Toyota's CEO, Koji Sato, has committed to selling 1.5 million battery EVs annually by 2026 and 3.5 million by 2030, despite the company adjusting its initial target due to demand and supply challenges. Meanwhile, Tesla, a major player in the EV market, delivered 1.81 million vehicles in the same period.
In a recent development, Toyota suspended shipments of 10 models after an internal investigation revealed test result manipulation by supplier Toyota Industries Corp. This revelation comes in the wake of a broader scandal involving Daihatsu's manipulation of collision safety test results dating back to 1989. Toyota has pledged to step in to assist Daihatsu in compensating suppliers and business partners during the partial suspension of production and vehicle recalls.
Toyota's Chairman, Akio Toyoda, scheduled to speak about the future vision of the group, asserted earlier this month that EVs would, at most, achieve a 30% market share. Daihatsu, under scrutiny for its test result manipulation, has been directed by Japan's transport ministry to propose countermeasures by mid-February, while Toyota plans to unveil a new structure without providing specific details.