(SINGAPORE, 10 February 2026) – Relying on the steady performance of its internal combustion engine (ICE) vehicle lineup, Toyota Motor maintained its position as the world’s top-selling automaker in 2025, with majority of sales concentrated in the US and Japan.
Even in China, where locally produced new energy vehicles (NEVs) and smart cars have surged, Toyota’s sales rose 0.2% year-on-year to about 1.8 million units. While still below its 2021 peak, Toyota was notably the only Japanese brand to post growth in the Chinese market.
In China, conventional fuel vehicles still accounted for more than 70% of Toyota’s sales, with staples such as the Corolla, Levin, and RAV4 driving the bulk of volume. Analysts forecast that Toyota’s total sales in China could surpass 2 million units in 2026, reinforcing its bid to remain the world’s leading automaker.
Toyota executives also announced that a new Lexus plant in Shanghai is slated for completion later this year, with the first vehicle expected in 2027. In April, the company plans to launch the Lexus ES (Executive Suite) in both hybrid and fully electric variants.
Globally, Toyota sold about 11.3 million vehicles in 2025, a 4.6% increase over the previous year, setting a new all-time sales record and marking the sixth consecutive year the company has led worldwide sales. ICE vehicles continued to dominate, with about 6.4 million units sold, representing 56% of total sales.
NEVs—including hybrid electric vehicles (HEVs), plug-in hybrids (PHEVs), battery electric vehicles (BEVs), and fuel cell electric vehicles (FCEVs), including Lexus models—totaled about 5 million units, about 44% of the company’s global sales.
By brand, Toyota (including Lexus but excluding Daihatsu and Hino) sold about 10.5 million vehicles, up 3.7% year-on-year. Lexus delivered 882,200 units (+3.6%), Daihatsu sold 675,300 units (+25.8%), and Hino recorded 110,500 units (–12%).
Strong sales in North America and Japan were key growth drivers. In North America, Toyota sold about 3 million vehicles, up 7.3% year-on-year, cementing the region as its largest market. US sales surpassed 2.5 million units for the first time—an 8% increase—accounting for 86% of total North American deliveries.
In Japan, sales reached about 2.1 million vehicles (+11.9%), rebounding from 2024 production disruptions due to recalls, with hybrids continuing to see strong demand.
By contrast, Toyota’s performance in China remained under pressure. The combined market share of the “Japanese Big Three” (Toyota, Honda, Nissan) in China once peaked at 24.1% in 2020 but fell below 9% in 2025, as Chinese brands captured new energy and smart vehicle segments. Despite a peak of about 2 million units in 2021, Toyota’s sales declined for three consecutive years. Yet, its drop was less severe than Honda or Nissan, thanks to a strategy of “maintaining ICE sales, promoting hybrids, and supplementing with BEVs”.
Toyota has been widely regarded as slow to embrace full electrification. In 2024, Chinese sales fell 6.9% to about 1.8 million units, with BEVs accounting for less than 1% of sales—far below China’s 35% NEV penetration—limiting growth potential. Toyota avoided a blanket “full electrification” strategy, instead cutting prices on key ICE models while scaling NEV production. In 2025, GAC Toyota’s bZ3X sold over 70,000 units, leading joint-venture NEV sales, while Camry Hybrid sales surged 62%, cementing hybrids as Toyota’s primary growth engine in China.
Globally, Toyota (including Lexus) sold about 4.4 million HEVs in 2025, up 7% year-on-year, accounting for about 89% of its electrified vehicle sales. Popular models like the Prius performed strongly in Europe and North America. However, BEVs remain a weakness, with only 199,100 units sold worldwide—far behind China’s BYD, which sold about 2.3 million BEVs globally in 2025.
To accelerate electrification, Toyota President Koji Sato ( 佐藤恒治) designated Lexus as the group’s EV flagship, reported Chinese media outlet Libusiness (砺石商业评论). A wholly owned Lexus facility in Shanghai’s Jinshan District, in partnership with the municipal government, will focus on EV and battery R&D and production, with a 5 billion yuan (S$950 million) investment and 100,000-unit annual capacity. The first BEV model is expected in 2027.
The establishment of Lexus (Shanghai) New Energy Co., Ltd. on 18 February 2025 made Lexus the second foreign automaker after Tesla to operate a wholly owned factory in Shanghai. While Lexus previously thrived on fully imported “Japanese-made” vehicles, its annual sales exceeding 200,000 units (2019–2021) have since slowed due to supply constraints and the rise of Chinese NEV brands. In 2025, Lexus sold about 882 vehicles globally (+4%), with electrified models surpassing 50% of sales for the first time. Yet BEVs like the fully electric Lexus RZ remain niche, with just 12,000 units sold worldwide, while ICE and hybrid models still dominate in China.
According to Visual Capitalist’s global 2025 sales ranking, Toyota retained the top spot, followed by Volkswagen, Ford, BYD, and Hyundai— BYD the only Chinese brand in the top five. Chinese automakers, led by BYD, SAIC (上汽）, and Nio （蔚来）, are rapidly expanding NEV production and exports. Analysts predict NEVs will account for 50–70% of new car sales in key markets by 2030. Without a faster EV rollout, Toyota risks losing ground to NEV-focused competitors.
While Toyota continues to invest in solid-state batteries, EVs, and hybrid technologies, its slower EV adoption could threaten long-term market share. Medium-term trends suggest BYD or Volkswagen could surpass Toyota in global units, and the long-term EV revolution favors manufacturers leading in NEV production, battery innovation, and global EV shift. Toyota’s top-selling status may be shaky unless it accelerates its EV strategy.
