Despite facing the tariff policies of the Trump administration, Japanese auto giant Toyota Motor Corporation announced on Thursday (January 29) that its sales reached a record high of 10.5 million vehicles in 2025, maintaining its position as the global leader in sales. Models like Prius and RAV4 saw strong sales in the US market, boosting overall demand.
Toyota and its luxury brand Lexus saw a 3.7% year-on-year sales growth, surpassing Volkswagen Group’s 9 million vehicles and Hyundai Motor Group’s 7.27 million vehicles.
The growth in Toyota’s vehicle sales was mainly driven by sales in the US and Japan, which together accounted for over 40% of the company’s total sales. Global sales of Toyota’s hybrid vehicles increased by 7.0% to 4.433503 million vehicles, while electric vehicles (EVs) saw a 10.2% overall growth to 4.994894 million vehicles, both reaching new highs.
Despite the initial imposition of tariffs as high as 25% by President Trump on Japanese vehicles, later reduced to 15%, Toyota has maintained strong momentum in the US market.
In the US, Toyota and Lexus saw a 7.3% increase in sales, reaching 2.93 million vehicles. Hybrid vehicle sales in North America increased by 19.9%, totaling around 1.268 million vehicles.
Toyota’s exports to the US rose by 14.2% to approximately 615,000 vehicles, with the RAV4 being one of the most popular models.
This performance reflects Toyota’s successful strategy of absorbing related tariff costs internally rather than significantly increasing prices for consumers, while also focusing on localized production and other cost control measures.
Although Toyota estimated last November that US tariffs would still result in a loss of 1.45 trillion yen (approximately $9.7 billion) by the end of the fiscal year ending March 2026, the company also raised its full-year operating profit forecast, citing successful cost reductions and strong demand in markets outside the US.
In mainland China, Toyota saw a slight increase of 0.2% in sales to 1.78 million vehicles last year, marking the first time in four years without a decline. Despite facing strong competition from Chinese electric vehicle manufacturers, Toyota’s hybrid cars and new electric models continue to see strong demand.
Another sign of robust global auto demand is Hyundai Motor Company, which announced that its 2025 global revenue is expected to grow by more than 6% compared to the previous year, supported by strong sales of hybrid cars in the US market. However, tariffs have impacted Hyundai’s operating profit, which fell by 19.5% year-on-year, with US tariffs causing the South Korean automaker to lose 4.1 trillion Korean won.
South Korea and the US reached a trade agreement last year, lowering tariffs on most Korean products, including automobiles, to 15% starting in November.
However, President Trump warned on Monday of reinstating a 25% tariff on South Korean cars, citing the slow implementation of the US-Korea agreement by the South Korean parliament. Following this news, Hyundai Motor Company’s stock price dropped by nearly 5%.
Hyundai’s sales in the US are more dependent on imports. The company stated in September that by 2025, only about 40% of its sales volume in the US would be locally produced. Hyundai aims to increase the localization rate at its Georgia plant to over 80% by 2030.
Toyota Motor Corporation relies on imports for only about one-fifth of its sales volume in the US and has been actively expanding its production capacity in the US, focusing on hybrid vehicles.