Summary
- As of November 2024, Toyota had sold 9,857,938 globally
- Toyota’s kaizen approach ensures continuous improvement, balancing quality and efficiency in mass production.
- From kei cars in Japan to full-size SUVs in the U.S., Toyota caters to every market segment with tailored models.
- Record-breaking hybrid sales in 2024 reflect Toyota’s focus on hybrids as a transitional technology, with 1 million electrified units sold in the U.S.
- Investments in modular and solid-state batteries position Toyota for long-term EV success while maintaining current market dominance.
For five years straight, Toyota Motor Corp. has maintained its position as the best-selling car company globally. In 2023, the automaker sold over 11 million vehicles, outpacing rivals like Volkswagen and General Motors. As of November 2024, it had sold 9,857,938 vehicles globally. This comprises units sold by its Lexus, Daihatsu, and Hino brands. Although we were still waiting for the company to publish its full 2024 report, these numbers are already compelling. Toyota’s ability to dominate diverse markets stems from a unique formula—balancing reliability, innovation, and adaptability.
While many of its competitors are on the lookout for the latest trends, Toyota has a much more measured approach. The Japanese manufacturer tends to take things slowly, without rushing into its strategies. It tends to combine customer confidence with technological advances and a deeper understanding of the market.
A Legacy of Reliability and Innovation
Toyota’s reputation for reliability is not marketing hype; it has taken decades of sober planning to get there. The company brings in a culture of kaizen: continuous improvement. As a result, processes and products develop to the consumer’s needs. Most visible in mass production, this strategy strikes an equilibrium between efficiency and quality.
Toyota’s transformation into a desirable brand was spearheaded by former CEO Akio Toyoda. Under his leadership, Toyota diversified its lineup, moving beyond its reputation for reliability to offer exciting models like the GR Yaris, GR Corolla, and the Supra. These performance cars introduced a sense of fun that had been missing from the brand.
In the U.S., Toyota consistently listens to consumer demands. The brand tailors its vehicles to meet expectations. The RAV4 Hybrid is a good example, having sold 20,612 units in the U.S. in December 2024 alone and a 29% annual volume increase from 2023. It’s worth mentioning the RAV4 is the best-selling SUV in the U.S. for the 8th consecutive year. It combines practicality with efficiency, hitting the sweet spot for U.S. buyers.
A Diverse and Strategic Product Portfolio
Its diverse lineup of products is one of the major strengths for Toyota, comprising everything from kei cars in Japan to full-size SUVs such as the Sequoia in the United States. Toyota caters to almost every possible segment. It is successful because it knows its local markets and its customers’ preferences.
For instance, in the U.S., models like the Tacoma and Tundra are absolutely dominant in the pickup segment despite recent V6 recall, while the Highlander and RAV4 continue to be popular family choices. The hybrid variants are also evidently becoming quite hot on the market, with an 8% surge in sales for the Highlander Hybrid in 2024. Meanwhile, globally, Toyota makes use of its sub-brands such as Gazoo Racing and TRD to attract performance enthusiasts while remaining mainstream.
It also partners with its dealers on a very serious note. Limiting stock to maintain demand, Toyota maintains high customer satisfaction and resale value, handling inventory with care. The company has thrived even in the most challenging market conditions thanks to this strategy and its diversified portfolio.
Smart Electrification and Market Timing
Toyota has thus far been the slowest to move toward electrifying, while others jump on the bandwagon. Toyota has viewed hybrids as a transitional means of meeting consumer needs now while it sets the stage for tomorrow’s EVs. Looks like the strategy is working. In 2024, Toyota’s U.S. electrified vehicle sales comprising the Toyota and Lexus brands, reached a record high of 1,006,461 units, a 53.1% increase from the previous year. These sales accounted for 43.1% of the company’s total sales volume.
Its modular battery development is yet another building block in Toyota’s vision. Rather than simply going with the present EV technology, the company has invested in solid-state batteries for its future models, which will allow it to have potential flexibility once the game changes with better technology and infrastructure.
Critics may have slammed Toyota for being slow to adopt EVs, but it continues to mix innovation with careful practicalities. By making sure its hybrid and PHEV models are sophisticated and reliable, Toyota has created a deeply loyal customer base while working over time toward that gradual embrace of full electrification. Gaining this customary steady transition strategy has served to keep record sales and profits flowing into Toyota’s pockets, even as the world keeps changing around it.
