Toyota Named World’s Best-Selling Car Brand For The 6th Time In A Row

Toyota has reinforced its position as the world’s leading car manufacturer in 2025, extending its winning streak to six consecutive years. By November, Toyota and its subsidiaries, Lexus, Daihatsu, and Hino, had sold 10.32 million vehicles globally, already surpassing Volkswagen Group’s full-year 2025 sales of 8.98 million units.​

How Did Toyota Maintain Global Leadership?

Toyota achieved this remarkable feat through a combination of strategic product development and market diversification:

• Hybrid-led electrification strategy: Rather than rushing into pure electric vehicles like competitors, Toyota prioritised hybrid technology, which continues to dominate its electrified vehicle sales across all markets
• Strong performance in the United States: Toyota Motor North America delivered 2.52 million vehicles in 2025, representing an 8.0% increase year-on-year, with electrified vehicles comprising 49% of total sales
• Record-breaking Europe results: Toyota Motor Europe posted 1.23 million vehicles sold, maintaining second place in the European passenger car market, with electrification penetration reaching 77%
• Exceptional growth in emerging markets: India emerged as Toyota’s growth engine, with sales reaching 389,000 vehicles in 2025—a 25.8% increase year-on-year, marking the company’s highest-ever annual performance in the region

This diversified approach meant that whilst China faced headwinds (traditional automotive markets competing with local electric vehicle manufacturers), Toyota’s dominance in North America, Europe, and Asia-Pacific more than compensated.

Which Toyota Models Drove 2025 Sales?

Key vehicle models demonstrated varying levels of market success, with electrified variants leading growth:

• RAV4 and Tacoma: The RAV4 maintained its position as the best-selling passenger SUV globally, whilst the Tacoma pickup truck achieved a remarkable 42% year-on-year growth, reaching 274,000 units
• Hybrid Models Outperformed: Corolla Hybrid sales surged 32%, whilst the Camry and RAV4 Hybrid variants dominated mid-size and crossover segments, respectively
• Sienna Minivan Renaissance: The Sienna achieved 35% growth to exceed 100,000 units annually for the first time since 2021, signalling strong demand for family vehicles
• Lexus Premium Segment: Lexus achieved its highest-ever United States sales of 370,260 vehicles, up 7.1% year-on-year, strengthening Toyota’s presence in the luxury segment

Toyota’s product portfolio strategy, offering vehicles across multiple segments from affordable compact cars to premium SUVs, ensured broad market appeal and reduced vulnerability to segment-specific downturns.

What Challenges Do Competitors Face in 2025?

Volkswagen Group struggled significantly in 2025, with overall sales declining 0.5% year-on-year to 8.98 million units. The core Volkswagen brand fell 1.4% to 4.73 million units, whilst Audi contracted 2.9% to 1.62 million units. Management changes, heavy electrification investments, and production facility closures in Germany highlighted the group’s strategic difficulties.​

Hyundai–Kia Group, ranking third globally, delivered 7.27 million vehicles in 2025, achieving only modest growth despite expanding electric vehicle lineups. The group’s performance suggests that aggressive electrification alone cannot overcome Toyota’s established market position and operational efficiency advantages.

Why Does Toyota’s Hybrid Strategy Matter?

Toyota’s decision to prioritise hybrid technology rather than pure electric vehicles proved commercially superior. In Europe, 77% of Toyota’s vehicles were electrified, yet hybrids accounted for approximately 88% of total electrified sales, with battery electric vehicles growing 46% to 51,919 units, an acceleration from a smaller base.

This multi-pathway approach, combining traditional engines, hybrids, plug-in hybrids, and battery electric vehicles, provides flexibility across different market conditions and regulatory environments. Competitors pursuing pure-EV strategies face higher execution risk and greater financial exposure to manufacturing overcapacity.

What’s Next for Toyota in 2026?

Looking ahead, Toyota’s pipeline includes refreshed versions of key models, including the Hilux and Land Cruiser FJ, expected to sustain sales momentum. Volkswagen’s planned counter-attack featuring an affordable ID. Polo under €25,000 represents competitive pressure, though execution risk remains substantial given the group’s current operational challenges.

Toyota remains positioned as the automotive industry’s most stable performer, balancing growth in emerging markets, maintaining strength in mature markets, and a prudent electrification strategy. Its sixth consecutive year as the world’s best-selling manufacturer reflects not isolated quarterly strength, but systematised excellence in product development, manufacturing, and market positioning.

Key Takeaway

Toyota’s 2025 dominance demonstrates that sustainable automotive leadership requires strategic flexibility, operational excellence, and market diversification, factors that no competitor has successfully replicated. The company’s hybrid-first electrification approach, combined with proven reliability and affordability, has created competitive moats that distinguish it from rivals pursuing riskier, single-pathway strategies.

Find the best used Toyota cars for sale in the UAE.

Stay tuned to UAE’s most popular auto blog for more information about the latest happenings in all of the Emirates.

FAQs