As Toyota maintained its position as the leading automaker in terms of sales, a subtle shift was underway that would soon challenge its dominance. While Toyota sold over 100,000 electric vehicles (EVs) in 2023, this still represents only a fraction – less than 1% – of the 11.2 million cars that changed hands last year.
Are Toyota’s Electric Vehicle Sales Meeting Expectations?
The automotive manufacturer revealed its global sales figures for 2023 on Tuesday, reporting a milestone of over 11.2 million vehicles delivered to customers worldwide last year.
Throughout the year 2023, a staggering total of 10.3 million vehicles were manufactured by the renowned brands Toyota and Lexus combined.
In 2023, Toyota’s global electric vehicle (EV) sales skyrocketed to a record-breaking 104,018 units, a remarkable 325 per cent increase over the previous year. Despite a triple-digit surge in electric vehicle production, Toyota still managed to sell just 24,000 EVs worldwide in 2022. Only a meager 0.93 percent of the company’s total 11.2 million vehicles delivered last year were electric-only models.
While Toyota’s hybrid and internal combustion engine (ICE) sales continue to claim the top spot. In its most recent year-end report, Toyota revealed a significant boost in the sale of hybrid vehicles, with a total of more than 3.4 million units sold globally, representing a notable 31 per cent increase over the previous year. Additionally, the company saw a substantial surge in demand for its MHEV (Mild Hybrid Electric Vehicle) models, with sales rising by an impressive 494 per cent compared to the prior year, reaching a total of approximately 26,859 units.
The automaker also sold 3,921 fuel cell electric vehicles (FCEVs), a modest decrease of 0.1% compared to the previous year’s tally. Throughout the year, Toyota’s “electrified” vehicle sales totalled nearly 3.7 million units. Toyota has already delivered almost a third of last year’s total car sales. Two-thirds of the vehicles were not gas-powered.
Volkswagen’s arch-rival offered a staggering 394,000 electric vehicles last year, making up an impressive 8% of its overall sales. As the market shifts towards electric vehicles, Toyota’s relatively low ranking starkly highlights its growing lag behind competitors.
Toyota’s reputation took a hit after Chairman Akio Toyoda issued a formal apology to address the recent scandals that rocked the company, acknowledging mistakes and vowing to make amends with its employees and stakeholders.
Here is the rewritten text in a different style:
“I want to extend my sincerest apologies to our valued customers and investors for the distress and disruption caused by the recurring issues at Hino Motors, Daihatsu, and Toyota Industries.”
Toyota unveiled a bold new vision as the company seeks to regain the trust of consumers and investors.
Electrek’s Take
While Toyota retains its position as the leading automaker this year, a subtle erosion of its market share is starting to manifest.
Despite EVs comprising less than 1% of total sales last year, Toyota lags far behind its peers, with many rivals already achieving significant milestones in electric vehicle sales, including double-digit and even triple-digit percentages.
Tesla’s Model Y outsold Toyota’s RAV4 and Corolla to become the world’s top-selling car last year.
Despite Toyota’s recent progress on fuel efficiency, the company’s limited all-electric offerings may still have a significant impact on its market share in key regions such as North America, Europe, and China moving forward?
Toyota’s CEO, Toyoda, posits that electric vehicles (EVs) will unlikely exceed a 30% market share, regardless of advancements in battery-electric vehicles (BEVs). He forecasts the remaining 70% to comprise hybrid electric vehicles (HEVs), fuel cell electric vehicles (FCEVs), and gasoline-powered vehicles. Toyota believes that engine-powered vehicles will undoubtedly remain a staple.
Meanwhile, several markets have surpassed or are poised to reach the 50% electric vehicle market share milestone, with notable exceptions including Norway (82.4%), Sweden (32%), The Netherlands (24%), and China (24%).
