Toyota Motor Corporation reported global group sales of 2,715,384 vehicles in Q1 2025, marking a 7.5% increase year-over-year. Domestic sales in Japan surged by over 37% to 557,353 units, while overseas sales grew nearly 2% to 2,158,031 units.
Toyota and Lexus brands combined saw global sales rise 4.8% to 2,515,791 units. Japanese sales increased 18% to 414,158 units, while overseas sales grew 2.5% to 2,101,633 units. North America, Asia (excluding Japan), and Latin America posted gains, while Europe experienced a slight dip.
Electrified vehicle sales grew 21% to 1,232,927 units in Q1 2025, making up 45% of total sales. Hybrid electric vehicle (HEV) sales rose 19% to 1,111,815 units, while battery electric vehicle (BEV) sales increased 15% to 34,730 units, mainly in overseas markets.
Daihatsu rebounded from past safety test manipulation issues, with global sales in March 2025 soaring 80% year-over-year to 169,843 units. However, overseas sales dropped 25%. Hino Motors, the group’s commercial vehicle arm, saw global sales fall 1.7% to 29,750 units.
For the fiscal year from April 2024 to March 2025, Toyota’s total sales reached 11,018,833 units, a slight 0.7% decrease from the previous year. Domestic sales in Japan fell 1.4%, while overseas sales grew less than 2%.
Toyota’s Q1 2025 performance highlights both structural challenges and the progress of its electrification strategy. Electrified vehicles now account for over 45% of total sales, with hybrids leading the charge. This suggests Toyota’s HEV-focused diversification strategy is succeeding amid concerns of slowing growth in the global EV market.
Sales slowdowns and price-cutting competition intensify among major EV makers, including Tesla. By April 2025, Tesla’s Q1 global sales dropped 8.5% year-over-year, with profitability declining in key markets like China and Europe. Toyota strategically maintains a strong hybrid presence, responding more flexibly to the rapidly changing electric vehicle market.
Daihatsu’s sales surge is noteworthy. The rapid recovery of consumer trust following the safety scandal signals a positive outlook for Toyota Group’s position in Japan. However, the decline in Daihatsu’s overseas sales suggests a challenge for global recovery moving forward.
Hino Motors’ slump is attributed to external factors, including intensified competition in the global commercial vehicle market and stricter regulations in Japan. The slow transition to electrification in the commercial vehicle sector remains a challenge for the entire Toyota Group moving forward.
Toyota responds to market uncertainty with its hybrid-focused strategy. However, a long-term strategy adjustment is needed to expand the BEV sector and strengthen the commercial vehicle segment.
