In 2023, Toyota Motor achieved record annual sales of 11.2 million, solidifying its position as the leading global automaker for the fourth consecutive year. However, the company’s chairman issued an apology on Tuesday regarding the occurrence of scandals at three group companies. The Japanese automaker’s global group sales increased by 7.2% in the previous year, including those of truck unit Hino Motors and small-car manufacturer Daihatsu.
These two subsidiaries and affiliate Toyota Industries have governance issues with regard to the certification test procedures for automobiles and engines, which could harm the brand’s reputation for quality and safety on a global scale. At an event where he unveiled a strategy for the 17-company conglomerate established by his great-grandfather, Akio Toyoda, chairman of Toyota Industries, apologized to the organization’s customers and stakeholders for the distress and inconvenience caused by the consecutive irregularities at Daihatsu, Hino Motors,
One of the five attitudes that were specified for employees to prioritize was “Be truthful and execute tasks in the proper manner.” The organization stated that the occasion, which was initially scheduled for February 14, the birthday of its deceased founder Sakichi Toyoda, was advanced due to recent complication at Toyota’s group companies.
With the exception of 2020, when the COVID-19 pandemic severely impacted the automotive industry, Toyota’s global group sales have exceeded 10 million vehicles in nine of the previous ten years.
This month, the second-ranked German competitor Volkswagen Group disclosed a 12% increase in deliveries to 9.2 million vehicles from the previous year, signifying a recovery in the company’s operations following the pandemic due to the alleviation of supply chain constraints. Sales of Toyota’s parent-only vehicles, including those of its namesake and Lexus brands, reached an all-time high of 10.3 million units in 2023, according to data released on Tuesday.
Electric-gasoline hybrids comprised roughly one-third of those. Electric vehicles powered by batteries comprised less than 1%. However, Toyota faces the possibility of a deceleration in the group’s sales momentum due to Daihatsu’s suspension of all car shipments last month. Toyota’s brand sold nearly two dozen of the 64 models that were found to have flaws in a safety controversy investigation, prompting this action.
According to data released by Daihatsu on Tuesday, the company’s global production fell by 25% to 121,000 vehicles in December, while sales fell by about 8%. The transport ministry of Japan lifted earlier in the day a prohibition on the shipment of ten Daihatsu automobiles. Toyota announced on Monday that shipments of certain models, including the Hilux pickup and Land Cruiser 300 SUV, would be suspended in the wake of an independent panel’s discovery of misconduct in testing procedures pertaining to diesel engines supplied by Toyota Industries.
Another committee charged with investigating an emissions controversy at Hino Motors discovered in 2022 that, beginning in 2003, the truck division had falsified engine emissions data.