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Scandal-Hit Toyota Still World’s Top-Selling Automaker

The auto firm has been beset by test certification issues and this week it was forced to urge the recall of 50,000 older US models over faulty air bag fears

The Toyota insignia is seen at the New York Auto Show in this Reuters image.


Japanese giant Toyota has been named the world’s top-selling automaker for the fourth consecutive year after posting record annual sales of 11.2 million vehicles in 2023.

But the crowning comes with the firm mired in a number of scandals for which its chairman apologised for on Tuesday.

The Japanese automaker reported a 7.2% jump in global group sales last year, including those at small-car maker Daihatsu and truck unit Hino Motors.

But those two subsidiaries and affiliate Toyota Industries have been beset by governance issues involving certification test procedures for cars and engines that could potentially hurt the brand’s global reputation for quality and safety.


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“I would like to express my deepest apologies to our customers and stakeholders for the inconvenience and concern caused by the successive irregularities at Hino Motors, Daihatsu and Toyota Industries,” Toyota’s Akio Toyoda told reporters at an event to announce a vision for the Toyota group founded by his great-grandfather that now includes 17 companies.

Toyota’s global group sales have now topped 10 million vehicles for nine of the past 10 years, except for 2020 when the Covid-19 pandemic delivered a blow to the auto sector.

Second-ranked German rival Volkswagen Group this month reported a 12% rise in deliveries last year to 9.2 million cars, marking a post-pandemic recovery as supply chain bottlenecks eased.

Tuesday’s data showed sales of Toyota’s parent-only vehicles, which include those of its namesake and Lexus brands, hit a record of 10.3 million vehicles in 2023.

Gasoline-electric hybrids made up about a third of those. Battery electric vehicles accounted for less than 1%.


Hilux, Land Cruiser Suspensions

Toyota, however, risks a slowdown in the group’s sales momentum after Daihatsu last month suspended shipments of all its cars after a safety scandal investigation found issues involving 64 models, including almost two dozen sold under Toyota’s brand.

Daihatsu said on Tuesday its global production slumped 25% to 121,000 vehicles in December and its worldwide sales were down about 8% that month. Japan’s transport ministry lifted a ban on shipments of 10 Daihatsu-made cars earlier in the day.

On Monday, Toyota disclosed it was suspending shipments of some Toyota models including the Hilux truck and Land Cruiser 300 SUV after an independent panel uncovered wrongdoing in tests for diesel engines developed by supplier Toyota Industries.

On the same day the firm said it was urging the owners of 50,000 older US vehicles to get immediate recall repairs because an air bag inflator could explode and potentially kill motorists.


  • Reuters with additional editing by Sean O’Meara


Read more:

Toyota Eyes 10.3 Million 2024 Production Target, Hybrid Boost

Toyota Shuts Daihatsu Factories After Safety Tests Scandal – CNN

Toyota Hit by Double Safety Probe Blow, Shares Slump

Toyota Plans Expanded Electric Vehicle Line-up for Europe




Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.


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