Toyota triumphs, sets new record with 11.2m vehicle sales in 2023

Toyota announced on Tuesday that it has secured its position as the world’s leading automaker for the fourth consecutive year, having sold an unprecedented 11.2 million vehicles in 2023.

This remarkable feat was fueled by resurging demand across all regions and a successful mitigation of semiconductor shortages.

The 7.2 percent year-on-year surge in sales solidifies Toyota’s dominance, leaving Germany’s Volkswagen Group trailing with 9.2 million units, despite their impressive 12 percent increase. Meanwhile, South Korea’s Hyundai-Kia maintained third place with 7.3 million units, marking a commendable 6.7 percent rise.

While Toyota reigns supreme in units sold, the market value battleground sees Elon Musk’s Tesla retaining its top spot. However, Toyota attributes its stellar performance to “solid demand in each region, in addition to easing semiconductor shortages.”

This record-breaking figure encompasses sales across Toyota, Lexus, Daihatsu, and Hino brands, surpassing the previous record set in 2019 at 10.7 million units. Exclusively focusing on Toyota and Lexus, global volume sales totaled an impressive 10.3 million units.

Despite Toyota’s historical focus on hybrids over electric vehicles, the company is evolving its strategy.

In 2023, Toyota sold just 104,018 EVs, a fraction compared to Tesla and China’s BYD. However, with plans to introduce an electrified version for every Toyota and Lexus model globally by 2025, Toyota aims to sell 1.5 million EVs annually by 2026 and 3.5 million by 2030.

In the wake of recent testing irregularities, Toyota is temporarily halting shipments of 10 models linked to engine irregularities at an affiliate.

Despite this, Toyota remains resilient in its commitment to delivering quality vehicles and expanding its presence in the electric vehicle market, exemplified by the significant expansion of an electric battery plant in North Carolina announced earlier this month.