Daily Management Review

Toyota Retains Its Position As The World's Leading Automaker For The Third Consecutive Year


Toyota Retains Its Position As The World's Leading Automaker For The Third Consecutive Year
Toyota Motor Corp. retained its title as the world's best-selling automaker in 2022, expanding its lead over Volkswagen AG despite continued supply-chain disruptions.
The Japanese auto giant reported Monday that group sales, which include those of its subsidiaries Daihatsu Motor Co. and Hino Motors Ltd., were mostly flat at 10.5 million units for the year. Volkswagen sales dropped 7% last year to 8.3 million units, the lowest level in 11 years.
While Toyota has gained ground on its German rival for the third year in a row, the key issue confronting Toyota and other automakers is the threat of weakening global demand. Concerns about dwindling demand for new vehicles have risen, weighing on Tesla Inc.'s stock.
In response to the weaker economic environment and rising inflation, Goodyear Tire & Rubber Co. is laying off workers.
Toyota, on the other hand, maintains that it is unable to produce enough vehicles to reduce delivery times. Customers are reporting months or even years of waiting for certain models. Toyota has set an output target of up to 10.6 million vehicles for the fiscal year beginning in April, with the caveat that final shipments could be 10% lower if it is unable to procure enough parts, particularly semiconductors.
According to S&P Global Mobility, Toyota will maintain its lead over Volkswagen in 2023, with 10.4 million light vehicle sales versus 7.99 million for the German automaker.
According to the researcher, Volkswagen sales are expected to recover beginning in 2024, while Toyota is on track to exceed 11 million annual light vehicle sales by the end of the decade.
“For both companies, the impact of production constraints will gradually ease,” said Yoshiaki Kawano, an analyst at S&P Global Mobility. “Overall, moderate recovery and growth are seen over the medium to long term.”
Toyota's newly appointed CEO, Koji Sato, 53, will face intense scrutiny as he attempts to meet that goal. The new CEO of the world's largest automaker, an engineer by training, previously ran the Lexus luxury automobile division and served as the company's chief branding officer.
Sato, a Toyota veteran who joined the company more than 30 years ago, will lead the automaker through what may be the most difficult period in its 86-year history, as the twin forces of electrification and automation sweep through the industry.
To serve customers and successfully transition to a post-gasoline future, the Japanese automaker has made it clear that it believes in the need to spread its bets across various technologies, including batteries, hybrids, hydrogen, and legacy combustion engines.