TOKYO: Japanese auto giant Toyota Motor Corp said on Thursday that its global vehicle sales reached a record high in 2025, defying trade tensions with the United States and allowing the company to retain its position as the world’s largest automaker, widening the gap with German rival Volkswagen.
Toyota said total sales, including those of subsidiaries Daihatsu and Hino Motors, rose 4.6 percent to 11.3 million vehicles last year. By comparison, Volkswagen sold 8.98 million vehicles, marking a 0.5 percent decline from the previous year.
The growth came despite flat sales in China, one of Toyota’s most important markets, where competition has intensified from domestic manufacturers, particularly electric-vehicle leader BYD, according to AFP.
In the United States, Toyota’s sales climbed eight percent, even as Washington imposed a 25 percent tariff on Japanese auto exports between April and mid-September, later replaced by a 15 percent tariff cap. The US remains a crucial market for Toyota, accounting for nearly one-quarter of its global sales.
Of the 2.52 million vehicles Toyota sold in the US in 2025, only 1.39 million were produced domestically. Even so, Toyota increased output at its US factories by 10 percent, driven by rising demand for its hybrid vehicles.
To remain competitive in the US market, Japanese automakers have been forced to cut prices, squeezing margins. In November, Toyota estimated that US tariffs would reduce its annual operating profit by approximately ¥1.45 trillion ($9.5 billion).
Other Japanese automakers fared less well. Nissan, grappling with serious financial difficulties, saw global sales fall 4.4 percent to 3.2 million vehicles, including a 6.3 percent drop in China. Honda reported an almost nine percent decline in global sales, to 3.4 million vehicles.
Despite headwinds from tariffs and slowing growth in China, Toyota’s performance highlights its resilience, scale, and growing strength in hybrid vehicles amid an increasingly competitive global auto market.
