Mathilde Carlier
Research Expert covering transportation and logistics
Toyota Motor Corporation - Statistics & Facts
On December 20, 2023, the Toyota Motor Corporation’s subsidiary Daihatsu was investigated by the Japanese transport ministry due to safety test irregularities recorded earlier in the year. International and domestic shipments from the small passenger car brand were suspended as 64 of Daihatsu’s models were found to be involved in improper testing. Daihatsu was the Toyota Motor Corporation’s third-largest subsidy based on sales volume: During the 2023 calendar year, the company sold over 790,400 Daihatsu, placing the brand some 33,800 sales under the luxury subsidiary Lexus.
This was only the beginning of the testing scandal which would rattle Japan’s automotive industry. As of mid-year 2024, an investigation by the Japanese government uncovered faulty testing data at five of the country’s largest vehicle manufacturers, including Toyota. As a result, the Toyota Motor Corporation halted the shipment of some of its key models, including some from its eponymous Toyota brand.
While this scandal is set to impact the Toyota Motor Corporation’s financial performance for its 2025 fiscal year, issues with its Daihatsu brand did not prevent the company from making its 2024 fiscal year the best year on record since 2012.
Toyota Motor Corporation’s financial performance in its 2024 fiscal year broke records, but competition within the automotive market and the current scandal could impact its 2025 fiscal year results and market capitalization. The investigation of faulty testing data is reported to have already impacted shareholders’ support for the automotive giant.
This was only the beginning of the testing scandal which would rattle Japan’s automotive industry. As of mid-year 2024, an investigation by the Japanese government uncovered faulty testing data at five of the country’s largest vehicle manufacturers, including Toyota. As a result, the Toyota Motor Corporation halted the shipment of some of its key models, including some from its eponymous Toyota brand.
While this scandal is set to impact the Toyota Motor Corporation’s financial performance for its 2025 fiscal year, issues with its Daihatsu brand did not prevent the company from making its 2024 fiscal year the best year on record since 2012.
Financial success despite the testing issues
During its 2024 fiscal year, running from April 2023 to March 2024, the Toyota Motor Corporation reported around 45.1 trillion Japanese yen in revenue. Its operating income also broke records that year, increasing by 96.4 percent year-over-year. The largest share of the company’s success was due to its domestic operations: Japan accounted for nearly half of Toyota Motor’s revenue, followed by North America, which generated some 17.9 trillion Japanese yen in revenue. North America was the Toyota Motor Corporation’s largest market in terms of unit sales, partly due to the popularity of its Toyota and Lexus brands in the United States. In 2023, both brands topped the consumer satisfaction ranking in the U.S., while Toyota was also the second best-selling brand in the country.Challenges to the Toyota Motor Corporation’s market-leading position
Toyota’s U.S. success is reflected in its global popularity. In 2023, it was the only brand to hold over 10 percent of the global market. With a valuation of 30.2 billion U.S. dollars, it further ranked as the second most valuable brand within the automotive sector as of June 2024. However, the Toyota Motor Corporation is facing stiff competition to maintain its leading position in the market. After years as the best-selling car model worldwide, the Toyota Corolla dropped to second place behind Tesla’s Model Y, with some 1.15 million units sold in 2023. On a manufacturer level, the Volkswagen Group was Toyota Motor’s biggest competitor, as the two have consistently topped the leading global motor vehicle manufacturers based on sales volume and sales revenue. The Volkswagen Group had also recorded a good financial performance in its latest fiscal year, partly due to a growth in global car sales across manufacturers.Toyota Motor Corporation’s financial performance in its 2024 fiscal year broke records, but competition within the automotive market and the current scandal could impact its 2025 fiscal year results and market capitalization. The investigation of faulty testing data is reported to have already impacted shareholders’ support for the automotive giant.
