Toyota’s drive for success: Automaker zooms past Volkswagen
Toyota Motor Corp announced today that it sold 5.16 million vehicles globally in the first half of this year, surpassing Volkswagen AG to maintain its position as the world’s top automaker for the fifth consecutive year.
Despite retaining the top spot, Toyota’s global sales from January to June, including those from its subsidiaries Daihatsu Motor Co and Hino Motors Ltd, experienced a 4.7% decline compared to the same period last year. This decrease is attributed to production disruptions caused by a series of quality scandals and weaker sales in China.
Volkswagen reported selling 4.35 million vehicles during the same timeframe, a slight drop from the 4.37 million units sold a year earlier.
Toyota’s global production fell 9.8% to 5.07 million vehicles in the first six months, as disclosed by the company.
Domestic sales within the Toyota group plummeted by 32.0% to 823,595 vehicles. This sharp decline occurred after Daihatsu halted production due to the discovery of manipulated safety test data. Daihatsu resumed production at all its domestic assembly plants in early May, following a shutdown that began in December.
Toyota also faced production halts domestically during the half-year period, with the company acknowledging non-compliance with government-specified testing procedures. Additionally, a recent recall of the popular Prius hybrid car contributed to the downturn in sales.
Meanwhile, overseas sales for Toyota increased by 3.1% to 4.34 million vehicles, driven by strong demand in North America and Europe.
However, the company faces challenges in China, where sales of Toyota and its luxury Lexus brand decreased by 10.8%. The market is becoming increasingly competitive, with local automakers expanding their range of affordable electric vehicles.
In total, Toyota and Lexus sold 4.89 million vehicles globally in the first half of the year, while Daihatsu and Hino sold 210,910 and 59,273 vehicles, respectively, said a Toyota spokesperson.
“The production halts and quality issues have certainly impacted our overall performance. Despite these setbacks, our strong performance in North America and Europe has helped mitigate some of the losses.”
The company is continuing its efforts to address the quality issues and enhance its competitiveness, especially in the rapidly evolving Chinese market, reported Bangkok Post.
