Japan’s Toyota Motor Crop overtake Germany’s Volkswagen AG in 2020 to become the world’s top-selling automaker, according to Toyota sales revealed on Thursday.
Toyota’s group sales for 2020 were over 95 lakh units, compared to Volkswagen’s worldwide sales of over 93 lakh units during the year. It’s the first time in five years that Toyota has acquired the top spot.
The victory for Toyota came despite a painful year for automakers. Although demand for cars recovered marginally toward the end of 2020, industry-wide factory and showroom shutdowns in the spring were enough to drag sales down 14% from 2019, according to an estimate from IHS Markit.
“Naturally the number of units sold was lower than in the previous year because of the spread of coronavirus,” Toyota spokeswoman Chisato Yoshifuji said Thursday. “But because Toyota and its partners were able to thoroughly implement measures to combat the spread of the virus, we were able to continue our corporate activities and keep yearly declines at the level they were,” she said.
Prior to 2020, VW outsold Toyota in every year since 2015. But the two companies’ results last year may be indicative of a longer-term trend, according to analysts.
While VW is expected to temporarily surpass Toyota again in 2021, Toyota is projected to pull ahead each year through 2025, IHS Markit said. VW’s push to produce more electrified vehicles should lead to a sales spike this year, but prolonged lockdowns and shop closures in its domestic market will continue to have an adverse impact, analyst Yoshiaki Kawano said.
Kawano said Toyota will continue to enjoy strong sales in its core markets of Japan and the U.S. In China, the world’s largest car market, it should “put up a good fight” by pushing out more EVs and SUVs in line with local demand, he said.
Although a number of factors such as the continued spread of the virus and a global chip shortage will persist in 2021, IHS Markit estimates auto sales will recover steadily to 84.4 million units from 76.8 million in 2020. Global car sales are expected to touch 94.8 million in 2025.