🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Toyota remains world's top-selling automaker; chairman apologises over scandals

Published 01/29/2024, 09:07 PM
Updated 01/30/2024, 05:41 AM
© Reuters. FILE PHOTO: The logo of Toyota Motor Corp. is seen on a steering wheel inside a Vios model at the 39 Thailand International Motor Expo, in Bangkok, Thailand, November 30, 2022. REUTERS/Athit Perawongmetha/File Photo

By Daniel Leussink

TOKYO (Reuters) - Toyota Motor (NYSE:TM) retained its crown as the world's top-selling automaker for the fourth consecutive year after posting record annual sales of 11.2 million vehicles in 2023, though its chairman apologised on Tuesday for scandals at three group companies.

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.

Those two subsidiaries and affiliate Toyota Industries (OTC:TYIDF) 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.

"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 Chairman 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.

One of the five attitudes laid out for employees to focus on was: "Be honest and make things in a right way."

The company said the event, originally planned for Feb. 14, the birthday of its late founder Sakichi Toyoda, was brought forward in light of recent irregularities at Toyota's group 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 (ETR:VOWG_p) 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%.

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.

© Reuters. FILE PHOTO: A Toyota Camry is displayed during the press day preview of the Los Angeles Auto Show in Los Angeles, California, U.S. November 16, 2023.  REUTERS/David Swanson/File Photo

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.

In 2022, another committee tasked with investigating an emissions scandal at Hino Motors found the truck unit had falsified engine emissions data going back to 2003. (This story has been refiled to add the dropped word 'vehicles' in paragraph 1)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.