Toyota Motor proudly maintains its status as the world’s top-selling automaker for the fourth consecutive year, announcing record-breaking annual sales of 11.2 million vehicles in 2023. The achievement, however, comes with a touch of remorse as the company’s chairman, Akio Toyoda, issues a public apology for recent scandals at three group companies.
The Japanese automaker reported a robust 7.2% surge in global group sales for the previous year, encompassing subsidiaries Daihatsu and Hino Motors. Notably, Toyota Industries, another affiliate, has faced governance issues, raising concerns about certification test procedures for cars and engines and potential damage to the brand’s global reputation for quality and safety.
Expressing remorse, Chairman Akio Toyoda stated, “I would like to express my deepest apologies to our customers and stakeholders for the inconvenience and concern caused by the successive irregularities at Hino Motors, Daihatsu, and Toyota Industries.” This apology was made during an event where a vision for the Toyota group, founded by Toyoda’s great-grandfather and now comprising 17 companies, was announced.
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Despite the challenges, Toyota’s global group sales have exceeded 10 million vehicles for nine of the past 10 years, showcasing its resilience. The company faced a setback in 2020 due to the COVID-19 pandemic but rebounded strongly in subsequent years.
In comparison, second-ranked German rival Volkswagen Group reported a 12% rise in deliveries last year, reaching 9.2 million cars. This indicates a post-pandemic recovery for the German automaker as supply chain bottlenecks eased.
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Toyota’s parent-only vehicles, including the namesake and Lexus brands, achieved a record-breaking 10.3 million vehicle sales in 2023. Gasoline-electric hybrids accounted for approximately one-third of these sales, while battery-electric vehicles comprised less than 1%.
Despite the impressive overall figures, Toyota faces challenges in the aftermath of safety scandals at its subsidiaries. Daihatsu, in particular, suspended shipments of all its cars last month after a safety scandal investigation found issues involving 64 models, including some sold under Toyota’s brand. Toyota itself suspended shipments of specific models, including the Hilux truck and Land Cruiser 300 SUV, due to irregularities in tests for diesel engines.
The scandals could dent Toyota’s reputation for quality and safety, crucial to its success. The automaker must address these issues effectively to safeguard its position as the world’s leading automaker.