Toyota Defends Title As World's Top-Selling Automaker Despite Raids & Scandals

For the fourth consecutive year, Toyota maintained its position as the best-selling automaker in the world, but its chairman expressed regret for recent problems with quality control at three of its group companies.

In 2023, Toyota's global sales, which include those of its subsidiaries Daihatsu and Hino Motors, increased by 7.2% to a record 11.2 million vehicles. Scandals involving fabricated emissions data and incorrect certification practices at its subsidiaries, however, have dogged the company.

The Japanese transport ministry reportedly launched an investigation at Toyota Industries Corporation (TICO), the company's affiliate that produces diesel engines for it, after irregularities found during certification testing of several Toyota diesel engines were revealed.

According to AFP, ministry representatives raided the TICO plant in Hekinan, Aichi Prefecture, yesterday in order to start an investigation. Prior to this, TICO informed Toyota that anomalies were found during the horsepower output testing for the certification of three diesel engine models that TICO had been contracted to construct, as a result of a special committee's investigation.

Hours after the TICO probe began, Toyota chairman Akio Toyoda expressed his sincere regrets for any inconvenience and worry the problems have caused, underlining the value of honesty and integrity for the company's future.

Toyota's core auto sales continued to grow in spite of the scandals, hitting a record 10.3 million units in 2023. Only a small percentage of those sales were made up of battery-electric vehicles; a third went to hybrid cars.

However, the recent production and shipment halts brought on by the quality control problems may pose a threat to Toyota's sales momentum. Following the discovery of safety issues with 64 models, Daihatsu stopped shipping all of its vehicles, and Toyota also stopped shipping some models because of anomalies in engine testing. The scandals may harm Toyota's standing for dependability and quality, which has been essential to the company's success.