In a rapidly evolving automotive landscape, Toyota's dominance faces new challenges. Despite maintaining its position as the world's leading automaker for the fifth consecutive year, with sales surpassing 10.8 million vehicles in 2024, the company's electric vehicle (EV) market share remains modest. The Japanese giant's reluctance to fully embrace the EV revolution has opened opportunities for competitors like BYD and Hyundai.

Toyota's global sales experienced a slight downturn in 2024, decreasing by 3.7% compared to the previous year. This decline was primarily attributed to a significant drop in domestic sales due to production halts caused by incorrect vehicle certifications. However, overseas markets provided some relief, with increased demand in North America and India. In contrast, key regions such as China, Indonesia, and Thailand saw reduced sales, influenced by the growing popularity of new energy vehicles and intensified price competition. While Toyota's hybrid sales reached an unprecedented 40% of total sales, pure EVs accounted for only 1.4%, highlighting the company's lag in this critical segment.

The rise of competitors like BYD and Hyundai signals a shift in the global automotive industry. BYD, now China's largest car manufacturer, sold over 4.25 million passenger vehicles in 2024, marking a 41% increase from the previous year. Hyundai Motor Group, despite a slight dip in overall sales, is aggressively expanding its EV lineup, including the upcoming IONIQ 9 and affordable models like the Kia EV3 and Hyundai Inster SUV. These moves are set to challenge Toyota's leadership. As the industry accelerates towards electrification, Toyota's delayed EV strategy may test its ability to retain its top position. Embracing innovation and adapting to market changes will be crucial for all automakers aiming to thrive in this new era.