A Road to Economic Recovery Paved With Challenges
Toyota was stalled from recovering financially from the worldwide recession that started in 2008 by a series of recalls and natural disasters in Japan and other production center locations, such as Thailand. Toyota's revenue finally surged in 2013 and recovered from the COVID-19 pandemic throughout its 2022 fiscal year. However, while the company's revenue surged in 2023—making it Toyota Motor's most successful year for net sales since 2012—its operating income decreased, down to nearly 2.73 trillion Japanese yen (around 18.82 billion U.S dollars at a June 29, 2023, exchange rate). This drop was attributed to the soaring raw material prices, which took off in February 2022 due to Russia's invasion of Ukraine. Price inflation and the continuing supply chain shortages were felt throughout the automotive industry during Toyota's 2023 fiscal year, impacting both this company and its competitors. Though on the rise, Toyota Motor Corporation's vehicle production was still below its pre-pandemic output. The global automotive semiconductor shortage led to production halts, including in the company's Czech factory in February 2023.Despite these challenges, the manufacturer's namesake brand has consistently ranked among the most valuable car brands within the global automotive sector. As of 2022, it came in second only to Tesla, beating out competitors such as Mercedes-Benz or BMW.
North American and Global Success
North America was the primary international market for Toyota vehicle sales, with sales volumes just above the domestic market. The United States market was particularly lucrative for the Toyota Motor Corporation. The Toyota RAV4 and Toyota Camry were the best-selling sport utility vehicle and cars in the United States in 2022. Lexus—the corporation's luxury vehicle subsidiary—had the highest U.S. consumer satisfaction index score across automobile and light vehicle brands in 2022. This North American success was reflected in the company's global performance. Over 1.1 million Toyota Corollas and around 870,000 RAV4s were sold worldwide, making them international best-sellers.While the Toyota Motor Corporation records strong performance in the traditional vehicle and luxury car sector, there is still room for improvement in the alternative fuel market. Partly propelled by increasing governmental pushes for zero-emissions passenger cars in various countries, the company has been increasing its research and development expenditures up to 1.24 trillion Japanese yen in the 2023 fiscal year (around 8.57 billion U.S. dollars). Investments were made in parts in integrated vehicle systems and powertrains. Approximately 95.48 percent of its alternative fuel vehicle sales in 2022 were hybrid electric vehicles, leading it to lag behind in the plug-in electric market segment, where Tesla and the Volkswagen Group were market leaders. The Volkswagen Group was Toyota Motor Corporation's main competitor, with Volkswagen Group's eponymous brand holding 6.7 percent of the 2022 global automotive market compared to Toyota's 11.5 percent.
