Sales, profits, market capitalization, why Toyota is the undisputed number one

It is far ahead of its historical competitors

American GM remained the world’s number one leader for 70 years, until 2007. Then it gave way… Toyota, which lost in 2011 and recovered in 2012, lost its profit from Volkswagen in 2016. Renault’s then-CEO Carlos Ghosn, president of Nissan and Mitsubishi Motors, claimed it was the world’s leading automaker, selling 10.6 million vehicles in 2017. Problem: Volkswagen announced 10.74 million for the same year! At issue: heavy trucks that the Franco-Japanese Alliance does not produce and therefore excludes from its figures, while Volkswagen and Toyota take them into account. Carlos Ghosn claimed the same top spot in 2018. In 2019, Volkswagen became the undisputed number one manufacturer, with Toyota firmly taking over this rank in 2020.

Toyota is the world’s leading car group, despite the fact that there are very few 100% electric vehicles, which Toyota believes moderately. 24,466 units were sold in 2022, far less than Tesla (1.3 million), China’s BYD (911,000) or Volkswagen Group itself (572,100). Disability? I’m not sure. “I think they (Toyota, editor’s note) will probably remain first because the early adopters are more Chinese companies than historical Western manufacturers,” Mio Kato, a consultant at Light Stream Research, analyzed.

Bet on hybrids

Despite weak electric sales, Toyota managed to become a “green” manufacturer in terms of technical and marketing success. He had indeed done pioneering work since 1997. Toyota Prius So, two years before the Honda Insight, it was the first series hybrid car (gasoline engine with electric backup). The Japanese firm has just released the fifth generation after 25 years. Today, Toyota has a full range of hybrid cars and plug-in hybrids from 2016, from the Yaris city car to large Camry sedans and SUVs (Yaris Cross, CHR, Rav4, Highlander). The Lexus lineup (top-of-the-line models) today consists almost exclusively of hybrid models (Ux, Nx, Rx, etc.).

In Europe, the small Yaris produced in Valenciennes and the compact Corolla produced across the Channel are the most popular today. Ten million marks for Toyota hybrids and Lexus At the beginning of 2021, this number was 20 million. Today, the company sells about 2.5 million electrified models a year. The Old Continent has absorbed about 3 million units since 2000.

It was launched last spring Toyota bZ4X electric SUV therefore, it is the group’s first so-called zero-emission model after the Lexus Ux. This promises to be the first in a series of models that the group promises. But the Japanese remain cautious. According to Matt Harrison, president of Toyota Europe, by 2025 it aims to have 10% of its sales from electric and hydrogen vehicles, 70% from hybrids, 10% from plug-in hybrids and 10% from gasoline models. plans”. .

Predicted flight of hydrogen

According to Didier Leroy, former executive vice president of the Japanese firm, Toyota hopes for a “real flight of hydrogen vehicles after 2025” in the long term. Toyota actually launched the Mirai in late 2014 hydrogen car. It was even the world’s first production fuel cell car (along with the Honda Clarity and Hyundai iX35). Customers in France: Air Liquide, Engie, equipment manufacturer Plastic Omnium, CEA (Atomic Energy Commission), STEP For Hype taxis !

The second generation of Mirai was introduced in 2019. The car is on sale in France from €79,250 and has a maximum range of just over 400 km. Frank Marotte predicts that the hybrid will “dominate Toyota brand sales in Europe by 2030”, however, pending the rise of hydrogen models.

A CEO change is in sight

Last week, 66-year-old Akio Toyoda announced that he will step down as CEO on April 1. He will be replaced by one of his lieutenants, Koji Sato, while taking over the very powerful presidency of the board. Akio Toyoda, the grandson of Toyota Motor Corporation founder Kiichiro Toyoda, has been leading the group since 2009.

Toyota makes record profits year after year. World’s leading car manufacturer for the 2021-2022 financial year (1)^er April-March 31) historical annual net profit increased by 27% to 2,850 billion yen (20.7 billion euros). This is five billion better than the Volkswagen group and seven billion better than Stellantis. Despite the production woes, Toyota also posted a very respectable operating margin of 9.5%.

At $550 billion, Tesla’s market capitalization remains the number one in the automotive world, even in a sharp decline, and still is. The leading traditional manufacturer in this area is Toyota (€210 billion), Volkswagen (74), Mercedes (70.5), BMW (58.5), GM and Ford ($49 billion each), ahead of Stellantis. (45 billion euros).

Closing the Japanese market

The recipes for this exceptional success? Toyota owes its undeniable success not only to internationalization with the widest range in the world, very strong positions in the USA, China, Asia and Europe, but also to internal factors. Above all, the Japanese group has historically locked down its domestic market, where it holds a largely dominant position as it occupies half of it! It even indirectly controls about 70% of the Japanese car market by buying shares in compatriots Isuzu, Suzuki, Mazda, Subaru.

Japan suddenly represented 47% of operating profit last year, rest of Asia 22%, North America 18%, Europe 3.5%! Toyota uses its dominance in the almost import-protected archipelago to collect the margins that finance its overseas projects. But the keys to Toyota’s success must also be found… Toyotaism. The Toyota method (Toyota Road) is a separate management model that is universally studied. The manufacturer has long referred to the point that Toyotaism was dissected and taught by MIT (Massachusetts Institute of Technology) in the 1980s. A blend of consensual pragmatism, frugality, humility in a constant effort to continuously improve processes and quality. And all employees are expected to follow suit!