As hybrids absorb the demand lost due to the chasm in the electric vehicle market, Toyota is reaping the benefits.
The Toyota RAV4 was America’s best-selling vehicle in 2024, with 474,193 units sold, a 9% increase from 2023. This achievement is particularly noteworthy as it unseated the Ford F-150, which had held the top spot for 47 consecutive years. Considering that the RAV4 ranked fourth in 2023 with 434,943 units sold, this represents significant growth within a year.
Adding to Toyota’s success, global consulting firm Brand Finance recently named it the most valuable automotive company, surpassing Mercedes-Benz. Brand Finance, a London-based consultancy with offices in 25 countries, is widely recognized for its corporate valuations in media reports.
Toyota’s Strong Hybrid Lineup Attracts Potential Tesla Customers
Brand Finance attributes Toyota’s surge in demand to its strong position in the hybrid market, especially as the electric vehicle sector experiences a slowdown. Last year, Toyota sold 2.33 million vehicles in the U.S., 44.5% of which were hybrids. The top-selling RAV4, particularly its hybrid variant, significantly contributed to this success.
Tesla’s recent performance decline further highlights Toyota’s gains. Tesla’s Model Y sales dropped 8% from 403,897 units in 2023 to 372,613 in 2024. This suggests that Toyota’s hybrid offerings are attracting customers who might have otherwise considered Tesla’s electric vehicles.
Brand Finance’s official report on Thursday highlighted that Toyota’s brand value soared 23% to $64.7 billion, driven by strong hybrid vehicle sales. The report noted that while many brands struggle with slower-than-expected EV adoption, Toyota has successfully resonated with consumers through its robust hybrid technology and diverse product lineup. Despite challenges like rising material and labor costs, Toyota maintained profitability through production optimization and AI-driven supply chain management.
Toyota’s dominance in the U.S. market was further demonstrated by its multiple entries in the top 10 best-selling vehicles list, including the Camry (309,875 units, 6th place) and the Corolla (283,098 units, 7th place), and the chart-topping RAV4.
