Toyota closed the year 2023 as the leader in car sales worldwide. The Japanese manufacturer delivered 11.2 million vehicles, 7.2% more than the previous year, and for the fourth consecutive year was crowned the undisputed king of the market. A success that serves in part to alleviate the loss of leadership of one of its cars as the best-selling model of the year, which this time corresponded to the Tesla Model Y, ahead of the Toyota RAV4 and the Toyota Corolla.
Toyota’s strategy differs from that followed by other large groups in the automotive industry, which for years have been strongly betting on the electrification of their models. It does not mean that the Japanese company has turned its back on the electric car, but rather that it continues to support the efficiency and reliability of internal combustion engines.
In addition to maintaining its commitment to models with traditional engines, Toyota has adopted a more decisive position towards the promotion of hybrid technologies and the implementation of fuel cell systems based on hydrogen.
Of a total of 11,233,039 cars sold by Toyota and its subsidiaries Lexus and Daihatsu in 2023, only 104,018 models correspond to electric vehicles, according to data released by the company. Although this figure represents a growth of 325.2% compared to the previous year, it only represents 1% of Toyota’s total sales, which clearly reflects its strategy. On the other hand, the sale of cars with a thermal engine rose to 7.5 million copies.
Toyota’s strategy responds to the positioning of Akio Toyoda, the current president of the automotive group, who designed the business policy during his last years as CEO of the firm. The grandson of the company’s founder has based his management on the promotion and development of technologies related to the use of hydrogen as a propulsion source, slowing the expansion of the 100% electric car.
Although Toyota’s roadmap includes the launch of 10 new pure electric cars starting in 2026, Toyoda considers that this technology has a growth ceiling of just 30% of the market share. “No matter how much electric cars advance, I think they will only have a 30% market share. The remaining 70% will be distributed by hybrids, plug-in hybrids and hydrogen engines. I think cars with combustion engines will definitely remain,” he said in statements published on the Toyota website.
In any case, this will be conditioned on how restrictive the regulations that end up being applied are. For example, in Europe a ban was established on the sale of new internal combustion cars starting in 2035, although the door was later opened for cars powered by synthetic fuels to continue being marketed.
According to Toyoda, the charging infrastructure represents a currently insurmountable obstacle to popularizing the electric car, hence his forecasts that completely differ from the point of view of other experts in the sector. “One billion people around the world live in areas without electricity. In the case of Toyota we also supply vehicles to these regions, so the 100% electric car option cannot provide transportation for everyone,” he stated.
The president of Toyota highlights, however, the brand’s commitment to hybrid models. He said the introduction of this technology cars in recent decades has helped reduce emissions, at least in Japan. “It is the only developed country that has reduced CO2 emissions by 23%.”
