While that marks Toyota’s third straight year of gains over its German rival, the key issue facing Toyota and other carmakers is the spectre of weakening global demand.
Toyota, however, still says it isn’t able to make enough cars to shorten delivery times. Customers are reporting waits of months or even years for certain models.
For the fiscal year beginning in April, Toyota has set an output target of as many as 10.6 million vehicles, with the caveat that final shipments could be 10% lower if it is unable to procure enough parts, especially semiconductors.
S&P Global Mobility predicts that Toyota will continue to widen its lead over Volkswagen in 2023, with 10.4 million light vehicle sales versus 7.99 million for the German carmaker. Volkswagen sales are projected to recover from 2024, while Toyota is on track to top 11 million in annual light vehicle sales by the end of the decade, according to the researcher.