Japan: Toyota Motor maintains its position as the world’s leading carmaker, reporting a remarkable 7.2% surge in global sales to reach 11.2 million vehicles in 2023. The Japanese automaker’s accomplishment, however, is accompanied by challenges as its subsidiaries face governance issues and a series of scandals.
Toyota Motor Group, including Daihatsu Motor and Hino Motors, achieved a historic milestone by surpassing the previous high of 10.7 million units in 2019, showcasing its resilience amid industry disruptions. Japan, North America, and Europe were instrumental in driving this growth, compensating for a decline in China.
Despite the success, Toyota’s Chairman, Akio Toyoda, issued a public apology for irregularities at three group companies, including Daihatsu and Toyota Industries. These governance issues involved certification test procedures for cars and engines, potentially impacting the renowned global reputation of Toyota 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,” stated Chairman Akio Toyoda.
The company’s annual event to announce a vision for the Toyota group was moved forward in response to these irregularities, emphasizing the importance of honesty and integrity in the manufacturing process.
Toyota’s global group sales have consistently surpassed 10 million vehicles for nine of the past ten years, reflecting a robust sales trajectory. However, challenges emerge as Daihatsu faces a production slump and sales decline following a safety scandal investigation.
The automaker also revealed the suspension of shipments for some Toyota models, including the Hilux truck and Land Cruiser 300 SUV, after an independent panel discovered wrongdoing in tests for diesel engines developed by supplier Toyota Industries.
While Toyota revels in the glory of record-breaking sales, these recent scandals pose a risk to the group’s sales momentum. The industry will closely watch Toyota’s response and corrective actions in the wake of these challenges.
