Toyota has secured the top spot in global car sales for a sixth consecutive year, widening a growing gap with Volkswagen Group. In 2025 Toyota, including Daihatsu and Hino, sold 11,322,575 vehicles worldwide, a 4.6% increase on the year, and produced 11,221,960 units, up 5.7%.
Volkswagen Group delivered 8,983,900 vehicles in 2025, a slight decline of 0.5%, leaving the German conglomerate roughly 2.3 million units behind Toyota. The divergence underscores how different strategies and market fortunes have shaped the industry since Toyota first overtook Volkswagen in 2020.
China remains the decisive battlefield. Toyota’s sales in China climbed to more than 1.78 million units in 2025, making it the only major Japanese maker to record positive growth in the market and surpassing the combined China sales of Nissan and Honda. By contrast, Volkswagen’s China deliveries fell to 2.69 million, an 8.0% drop and its second consecutive year of decline in the country.
Volkswagen has announced a management overhaul within its core brand group, planning to cut roughly a third of brand board members by summer 2026. The group says this restructuring, together with production changes, could free up to 1 billion euros in cost savings by 2030 — a signal of mounting pressure to improve profitability and speed the transition to electrification.
Meanwhile Chinese manufacturers are reshaping the global ranking. BYD reported full-year sales of 4,602,436 vehicles in 2025, up 7.7%, with battery-electric models surging to 2,256,714 units, a near 28% increase. Geely posted a 26% jump to 4,116,321 vehicles, surpassing 4 million annual sales for the first time and setting an ambitious target to reach 6.5 million units by 2030.
The numbers reflect deeper structural shifts. Toyota’s success is driven by a diversified product mix that still relies heavily on hybrids and internal combustion engines, combined with steady production capacity. Volkswagen’s weaker performance in China and the broader market highlights the risks legacy carmakers face amid faster-than-expected competition from nimble EV specialists and domestic champions.
For suppliers, financiers and policymakers the rankings matter because market leadership shapes technology standards, investment flows and supply-chain leverage. Toyota’s position gives it influence over hybrid technology and component sourcing norms, while the rapid rise of Chinese groups accelerates the global pivot toward low-cost electric platforms and battery ecosystems.
The industry now faces a dual challenge: incumbents must manage cost and governance reforms while simultaneously accelerating product shifts, and Chinese manufacturers must convert volume gains into sustainable margins and global brand recognition. The next few years will determine whether high-volume leadership translates into long-term dominance in the electric era.