With a significant increase in sales and production, Toyota has refuted critics who predicted the Japanese automaker would fail in the era of electrification.
In September of this year, auto giant Toyota achieved an impressive milestone of selling a total of 921,308 vehicles, marking an 11.6% surge compared to the same month the previous year. Simultaneously, Daihatsu’s sales exhibited a modest growth of 2.4%, totaling 71,350 units. Although Hino model sales witnessed an 11.6% drop, the overall group’s sales ascended by an impressive 10.5%, reaching 1,003,779 units. Toyota’s sales beyond its home market, encompassing the Daihatsu and Hino brands, realized a substantial 9.3% increase, amounting to 800,591 units.
Toyota’s production figures also tell a story of strength. In September, the automaker manufactured 900,919 vehicles, with 310,920 produced in Japan, marking a significant 12.8% increase, while 589,999 units were built overseas, representing a 3.6% decrease. Impressively, this marked the ninth consecutive month of year-on-year production growth for Toyota. However, it was also the second consecutive month of year-on-year production decline outside of Japan.
For the first half of the fiscal year, from April to September 2023, Toyota demonstrated an impressive global sales growth, totaling 5,172,387 units, marking a noteworthy 9.1% increase. Production figures were equally robust, rising by 12.8% to reach 5,058,248 units. Throughout the period spanning January to September, worldwide sales saw a commendable 6.7% rise from the previous year, totaling 7,571,733 units, while production recorded a remarkable 10.1% growth, reaching 7,402,861 units. Notably, production within Japan was a key driver for Toyota this year, experiencing a significant 27.3% surge to 2,500,988 units since January.
The North American market witnessed a significant upturn in Toyota and Lexus model sales, increasing by 9.4%. Europe and the Middle East saw sales rise by 7% and 17%, respectively, while Africa recorded an impressive 22% growth. This impressive trend was consistent throughout the April-September period, with September marking a notable achievement in North America, where sales soared by 17%. Toyota attributed this success to the robust demand for electrified vehicles such as the Corolla and Tundra HEVs, in addition to signs of semiconductor shortages trending toward recovery.
In addition to robust sales figures, Toyota enjoyed record-breaking profits in the period spanning from July through September. The operating profit reached an unprecedented 1.44 trillion yen (equivalent to $9.5 billion), marking an extraordinary 155.6% surge compared to the same period the previous year. A significant portion of this success can be attributed to the surging demand for Toyota’s hybrid vehicle offerings. The company’s ‘electrified models’, primarily comprising hybrid and plug-in hybrid (PHEV) cars, accounted for a substantial 36.4% of Toyota’s total global sales in the quarter, a notable increase from the 27.3% share recorded a year earlier.
Toyota’s Market Dominance
Toyota’s journey in the electrified vehicle market has witnessed rapid growth in recent years. In 2022, the company sold over 2.7 million electrified vehicles worldwide, marking a remarkable 39% increase from the previous year. Electrified vehicles now constitute over 30% of Toyota’s global sales.
Toyota’s strength particularly shines in the hybrid market, with the company surpassing all others by selling over 2.4 million hybrid vehicles in 2022. The company is also gaining market share in the PHEV segment, with sales of over 200,000 PHEVs in 2022, representing a staggering 300% increase from the previous year.
While Toyota’s BEV sales are still relatively modest, the company is making strides by expanding its BEV lineup and boosting production capacity. Toyota is poised to become a prominent player in the BEV market in the years to come.
Investment in EV Production
Toyota is making substantial investments in expanding its electrified vehicle production capacity. The company’s ambitious goal is to achieve the capacity to manufacture 5.5 million electrified vehicles annually by 2025, which includes 4 million hybrids, 1 million PHEVs, and 500,000 BEVs.
Additionally, Toyota is ramping up its battery production capacity, aiming to produce 200 gigawatt-hours of batteries annually by 2025. This quantity of batteries will be sufficient to power over 2 million BEVs.
In a strategic move to accelerate electrified vehicle development and production, Toyota has entered into partnerships with several prominent automakers, including BYD, Mazda, and Subaru, to develop BEVs. Furthermore, Toyota is collaborating with Panasonic to develop cutting-edge batteries. These partnerships are instrumental in bolstering Toyota’s position in the electrified vehicle market.
