In a reaffirmation of its market dominance, Toyota Motor has secured its position as the world’s leading automaker for the fourth consecutive year, reporting record annual sales of 11.2 million vehicles in 2023.
This accomplishment comes amidst a backdrop of challenges, as the company’s chairman, Akio Toyoda, issued a public apology on Tuesday for scandals that have recently plagued three of its group companies.
The impressive 7.2% increase in global group sales for Toyota last year encompasses figures from subsidiaries Daihatsu, a small-car manufacturer, and Hino Motors, a truck unit.
However, these companies, along with affiliate Toyota Industries, have faced governance issues related to certification test procedures for cars and engines, posing potential risks to the brand’s global reputation for quality and safety.
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Speaking at an event outlining a vision for the Toyota group, which now consists of 17 companies and was founded by his great-grandfather, Chairman Akio Toyoda expressed regret over the disruptions caused by irregularities at Hino Motors, Daihatsu, and Toyota Industries.
He stated, “I would like to express my deepest apologies to our customers and stakeholders for the inconvenience and concern caused by the successive irregularities.”
The company had originally planned the event for February 14, the birthday of its late founder Sakichi Toyoda, but decided to move it forward due to the recent challenges faced by its group companies.
Despite the setbacks, Toyota’s global group sales have exceeded 10 million vehicles for nine of the past 10 years, with 2020 being the exception due to the impact of the COVID-19 pandemic on the auto sector. Its main competitor, Volkswagen Group, reported a 12% rise in deliveries last year, marking a post-pandemic recovery.
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The data from Tuesday’s announcement revealed that sales of Toyota’s parent-only vehicles, including the Toyota and Lexus brands, reached a record of 10.3 million vehicles in 2023. Gasoline-electric hybrids constituted about a third of these sales, while battery-electric vehicles made up less than 1%.
However, challenges loom on the horizon, as Toyota faces potential disruptions in its sales momentum. Daihatsu recently suspended shipments of all its cars following a safety scandal investigation, leading to a 25% slump in global production and an 8% decline in worldwide sales in December.
Additionally, Toyota itself suspended shipments of certain models, including the Hilux truck and Land Cruiser 300 SUV, due to wrongdoing uncovered in tests for diesel engines developed by supplier Toyota Industries. These incidents pose a risk to the company’s continued success in the global automotive market.
