Toyota ended 2024 as the world’s top-selling automaker for the fifth year in a row. The Japanese company sold 10.8 million vehicles worldwide, including its Lexus luxury brand, small-car division Daihatsu, and commercial vehicle brand Hino Motors.
However, Toyota’s total sales dropped by 3.7% compared to 2023, marking its first decline in two years. Despite staying ahead of competitors like Volkswagen and Hyundai, Toyota faced several challenges. The biggest issue was a sharp sales drop in Japan, along with the rising competition in electric vehicles (EVs) from BYD and Tesla.
Toyota’s sales decline was mainly due to poor performance in Japan, where sales fell by 19.7% in 2024. According to a Reuters report, this decline happened because of problems with certification test procedures at Daihatsu. The issue forced Toyota to stop production of some of its best-selling models, including the Prius, Yaris Cross, and Corolla Fielder.
Outside Japan, Toyota’s performance was mixed. The company saw higher demand in North America and India, which helped balance the losses. However, In China, Toyota’s second-largest market, sales dropped 6.9%, reflecting the increasing dominance of local brands such as BYD, which has gained popularity with its affordable EV offerings.
Meanwhile, sales in Indonesia and Thailand fell by 9.5% and 17.1%, respectively as reported by electrek, highlighting a shift in consumer preferences toward electrified mobility and lower-cost alternatives. Toyota blamed these losses on the rising popularity of electric and hybrid vehicles and increasing price competition in these regions.
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While Toyota remained the global leader, Volkswagen Group secured second place in 2024 with 9.03 million vehicles sold, which was 2.3% lower than the previous year. Hyundai Motor Group ranked third, selling 7.2 million vehicles, a 1% decrease from 2023.
Despite these declines, both Volkswagen and Hyundai have stronger EV sales than Toyota, which may help them grow in the future.
Toyota continues to lead in hybrid vehicles, with hybrid sales reaching a record 40.8% of total sales in 2024. The company’s hybrid technology remains popular among customers who are not yet ready to switch to full electric cars.
However, Toyota lags behind in EV sales. In 2024, Toyota and Lexus sold only 139,892 fully electric vehicles (EVs), which was just 1.4% of total sales.
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In comparison, Volkswagen sold 745,000 EVs last year, about 8% of its total sales. Even this was a 3.4% drop from the 771,100 EVs Volkswagen sold in 2023.
While Toyota and Volkswagen struggle with EV sales, Chinese automaker BYD is growing quickly. BYD sold 4.25 million vehicles in 2024, an increase of 41% from 3 million in 2023.
BYD also outsold Nissan and Honda for the first time. In 2023, BYD became China’s largest car company, overtaking Volkswagen. Now, BYD is expanding globally, selling both EVs and hybrid vehicles.
Meanwhile, Hyundai Motor Group, which includes Hyundai and Kia, is also making big moves in the EV market. Hyundai and Kia sold over 200,000 EVs in 2024.
Toyota is still the world’s top-selling automaker, but it faces challenges. As more people switch to electric cars, companies like BYD, Tesla, and Hyundai are gaining market share.
Toyota has started working on its EV lineup, with new models like the 2025 Lexus RZ 450e and the Toyota bZ series. However, it still has a long way to go to catch up with its competitors.
If Toyota does not improve its EV strategy, it could lose its No. 1 position in the coming years. With EV adoption increasing worldwide, Toyota must act fast to remain the leader in the auto industry.