News
Toyota Motor Corp. has been announced as the world’s top-selling automaker for the sixth year in a row following a year of record sales. The Japanese group extended its lead over rivals despite tariffs, trade disruption and intensifying competition from Chinese EV makers.
The automaker said its global sales climbed 4.6% to a record 11.3 million vehicles last year, including statistics from subsidiaries Daihatsu Motor and Hino Motors, beating competitors like Volkswagen and BYD.
Its global production also rose 5.7% to 11.2 million vehicles, underpinning Toyota’s self-confessed ability to remain “on track despite trade turmoil.”
Much of that growth was driven by strength in Toyota’s home market and the United States. Sales in Japan jumped 12%, accounting for roughly 18% of global volume, while Toyota and Lexus deliveries in the U.S. rose 8%. The rebound was fuelled largely by demand for hybrid models, a segment where Toyota has historically dominated.
“Hybrid vehicles remained popular,” the company said in a statement, noting that it has committed more than $900 million to expand hybrid production in the U.S. This decision is part of a wider plan to invest up to $10 billion in American production over the course of five years.
The results stand in sharp contrast to rivals, such as Volkswagen Group, who reported a 0.5% drop in 2025 deliveries to about 9 million vehicles. Both Honda and Nissan also posted declining global sales figures.
Analysts have cited trade tensions, caused by President Donald Trump’s tariff tirade, as a key cause of the market fluctuation; the Trump administration imposed a 15% tariff on Japanese cars and parts entering the U.S., up from 2.5%. This sharp increase in tariffs prompted automakers to shift production and accept billions in losses.
Like the majority of other OEMs, Toyota has not been entirely immune to the impacts of tariffs, with the company projecting a $9 billion cut to operating profits in the fiscal year ending in March.
Meanwhile, in China, Toyota has managed a modest recovery after years of declines, aided by its well-received hybrid pivot. However, increasingly affordable EVs from Chinese automakers like BYD and Geely mean Toyota have cast doubts over its Chinese presence; BYD delivered 4.6 million vehicles in 2025, nearly half fully electric, while Toyota sold just under 200,000 battery EVs worldwide.
Toyota’s hybrid vision has proven successful despite market uncertainty, demonstrating a strategy that centres consumer preference over forward-thinking innovation. But, will Toyota hold on to its crown as the world accelerates into an electric future?
Keep up-to-date with the latest mobility news by subscribing to MOVEMNT’s free newsletter
