The comments come as several Chinese manufacturers record strong sales growth and move higher in the global rankings. Although Toyota retained its position as the world’s largest automaker in 2025, the gap between established manufacturers and fast-growing Chinese brands continues to attract attention.
Toyota sold just over 10.5 million vehicles under the Toyota and Lexus brands in 2025, securing the global sales crown for a sixth consecutive year. That figure rises to around 11.2 million vehicles when subsidiary Daihatsu is included. By comparison, the Volkswagen Group sold nearly 8.7 million vehicles during the same period, excluding full-size commercial vehicles.
Chinese Automakers Continue To Gain Ground
Several Chinese manufacturers recorded significant growth in 2025, strengthening their positions among the world’s largest automakers.
BYD finished sixth in the global rankings after delivering 4.6 million vehicles, an increase of 7.72 percent compared with 2024. The company’s chairman, Wang Chuanfu, has said BYD has the potential to become the world’s largest automaker within the next five years.
MG owner SAIC ranked seventh after selling 4.5 million vehicles, representing a 12.3 percent year-over-year increase. Geely, the parent company of Volvo, placed ninth with 4.12 million vehicles delivered, posting a 26 percent increase over the previous year.
Toyota Points to Long-Term Brand Strengths
Toyota believes its competitive position is supported by more than sales volumes alone. Speaking to Drive magazine, Toyota Australia’s Vice President of National Sales, Marketing and Franchise Operations, John Pappas said the company’s value comes from what it describes as QDR: quality, durability, and reliability. According to Drive, Pappas said customers continue to place their trust in established brands during periods of uncertainty.
“We saw it in COVID, and I feel like our brand trust has really enabled that over a long period of time,” Pappas said.
He also said Toyota benefits from a well-established dealership network and after-sales support. Strong resale values are another advantage highlighted by the executive. Toyota’s broad global product range, including models developed for specific regions, contributes to the company’s market position, although the automaker is considering reducing the size of its portfolio.
Toyota Warns the Competitive Environment Remains Challenging
Even while remaining the world’s best-selling automaker, Toyota has acknowledged the pressures facing the industry. Profitability is as important as sales volume and that the company cannot afford to become complacent. Earlier this year, during a meeting with suppliers, former Toyota CEO Koji Sato warned about the industry’s current situation.
“Unless things change, we will not survive. I want everyone to acknowledge this sense of crisis. Right now, we in the automotive industry are battling for our very survival,” Sato said.
Toyota recognizes that the rapid expansion of Chinese automakers represents a real challenge for the global automotive industry.
