Toyota Regains Global Sales No.1 Last Year... Surpasses Volkswagen After 5 Years

Regains No.1 Spot After 5 Years by Surpassing Volkswagen
Sharp Decline in European Market Sales and Rise of Tesla Are Key Factors

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] Toyota has reportedly reclaimed the top spot in global automobile sales, surpassing Volkswagen for the first time in five years. Amid the global automotive market's significant contraction due to the COVID-19 pandemic last year, Toyota focused on rapid recovery by concentrating on the Chinese market. Additionally, being relatively closer to its home country compared to Europe allowed Toyota to expedite supply chain restructuring.

According to Japanese local media such as Nihon Keizai Shimbun and major foreign news outlets on the 28th, Toyota announced that its global sales volume for the past year reached 9,528,348 units, overtaking Volkswagen's 9,305,400 units sold last year and reclaiming the number one position in global sales. This marks Toyota's first time as the global sales leader since 2015, five years ago.

However, Bloomberg News reported that the sales volume itself decreased by 11.3% compared to the previous year, making it difficult to celebrate. Toyota regained the top spot mainly because its decline was smaller than Volkswagen's 15.2% decrease in sales last year. According to the European Automobile Manufacturers Association, automobile sales in Europe plummeted by 24% last year due to the impact of COVID-19, delivering a severe blow to Volkswagen, which relies heavily on European sales.

On the other hand, China, which is geographically close to Japan, saw a recovery in vehicle sales after the COVID-19 situation stabilized from the second quarter of last year, mitigating the impact on revenue contraction. Last year, Toyota sold more than 5.3 million vehicles in China alone, with over half of its revenue generated from the Chinese market. In particular, compared to Volkswagen and other European automakers that heavily depend on Chinese factories for automobile parts production, Toyota was able to restructure its supply chain from its home base in Japan, which is relatively close, enabling immediate targeting of the Chinese market.