The U.S. motor vehicle and parts retail trade reported revenue of just over 1.53 trillion U.S. dollars in 2021, representing a 23 percent increase yearly. However, this financial performance and Toyota’s market position have struggled amid the global automotive semiconductor shortage. In June 2022, both Toyota and Lexus—Toyota Motor Corp’s luxury brand—were among the five brands with the lowest days of vehicle supply in the U.S., while General Motors‘ brands faired better.
Toyota Motor Corp Brands Lead the U.S. Market
Toyota is one of the market leaders in North America. Its RAV4 model was the best-selling sport utility vehicle in the United States in the first eight months of 2022 and was at the top of Canadian sales in the last quarter of 2021. Furthermore, the most popular passenger cars in the U.S. between January and August 2022 were the Toyota Camry and Corolla, with sales of both models adding up to over 339,200 units. The Toyota Motor Corp not only competes within the traditional internal combustion engine car market but also reports a strong presence in the electric vehicles and luxury markets. Between the first quarter of 2020 and the second quarter of 2022, Toyota consistently ranked as the best-selling hybrid and plug-in hybrid electric vehicle brand in the U.S., while Lexus was the third leading luxury car brand in the country in 2021.Part of this success is due to the automaker’s ad spending in the U.S. In 2021, Toyota Motor Corp spent some 1.57 billion U.S. dollars in advertising, making it the fourth biggest spender on advertising, behind its main competitors General Motors, Ford Motor Company, and Stellantis. The manufacturer had also been increasing its research and development expenses between 2021 and 2022, investing in new technologies such as powertrains and advanced mobility solutions, including integrated vehicle systems.
A Strong Consumer Satisfaction Across Brands
Toyota’s eponymous brand and its luxury marque Lexus recorded a dip in U.S. sales in the fourth quarter of 2021 compared to that same period a year earlier. Still, this drop in transactions did not impact the brands‘ popularity. Toyota and Lexus came in third and first as the most reliable car brands in the U.S. as of November 2021, awarded scores of 71 and 76 percent reliability.Consumer satisfaction with the brands was also one of the highest in the country. In 2022, Lexus was the brand with the highest satisfaction index score, at 84, while Toyota ranked within the top 10. Both brands have improved consumer satisfaction since 2021, suggesting that while supplies rapidly decrease amid market challenges, Toyota Motor Corp remains a safe bet for U.S. drivers. This popularity is reflected in Toyota Motor Corp’s regional revenue distribution, with North America representing around 35.6 percent of the company’s total revenue.
