Kevin JohnsonToyota is a Japanese multinational automotive manufacturer based in Toyota City, Aichi, Japan. Kiichiro Toyoda founded Toyota in 1933 as a spinoff of Toyota Industries, owned by his father, Sakichi Toyoda. In 1934, Toyota developed the Type-A prototype engine.
The company made its first passenger car in 1936, delivered the iconic Toyota Corolla in the 1960s, and started producing hybrid electric vehicles in the 1990s. In 2012, Toyota became the world’s first automobile manufacturer to make over 10 million vehicles annually.
The company delivered its 200 millionth vehicle to the market in 2012. In 2022, Toyota retained its position as the world’s best-selling automaker for the third year. The company sold 10.5 million vehicles in 2022. [1]
Toyota operates globally via regional branches. The corporation produces vehicles under four brands: Daihatsu, Hino, Lexus, and Toyota. Hino is a truck unit, Daihatsu, a small-car maker, while Lexus is Toyota’s luxury auto division with high-end cars, including Lexus IS 350 and Lexus RX.
In 2022, the automaker redesigned Lexus RX 350 with a 295-horsepower 3.5L V6 engine and the RX 450h hybrid with an electric motor. The company also introduced RZ 450e, its first all-electric vehicle. In 2022, Toyota employed over 370,000 people and operated 67 manufacturing plants worldwide. [2]
The company faces stiff competition from Nissan, Ford, GM, Benz, BMW, Volkswagen, and Audi. Here is an in-depth analysis of Toyota’s top 15 competitors and alternatives:
1. Volkswagen
Year founded: 1937
Headquarter: Wolfsburg, Germany
Volkswagen is a German auto manufacturer that offers sedans, SUVs, coupes, and trucks. It is the second top-selling automaker globally after Toyota. In 2022, Volkswagen Group sold 8.3 million vehicles.
Volkswagen has several subsidiaries, including Audi, Bentley, Lamborghini, Bugatti, Traton, MAN, IAV, Renk, WirelessCar, Porsche, Ducati, Scania, Skoda, Seat, and MOIA. These brands operate as separate entities and cooperate in research and development.
In Mar 2023, Volkswagen plans to boost productivity at its mass-market brands to cope with increased competition. The company expects a 14% increase in vehicle deliveries in 2023 and is the top Toyota competitor. [3]
2. Ford Motor Company
Year founded: 1903
Headquarter: Dearborn, Michigan
Ford is an automaker that makes sedans, trucks, SUVs, and heavy commercial vehicles. The company sells automobiles under its Ford brand and luxury cars under its Lincoln brand. In 2022, Ford had 173,000 employees and operated over 100 facilities.
Ford competes against Toyota across the auto sector, from non-luxury petrol guzzlers to luxury hybrids and electric cars. In 2022, Ford reported a net loss of $2 billion due to high production costs and computer chip shortages.
Its luxury brand launched a new Lincoln Zephyr in 2022 and laid a roadmap to deliver a fully electric Lincoln Aviator in 2024. Ford is the third best-selling automaker globally and one of the top Toyota competitors. [4]
3. General Motors (GM)
Year founded: 1908
Headquarter: Detroit, Michigan
General Motors is an American multinational auto manufacturer with several subsidiaries, including Chevrolet, GMC, Cadillac, ACDelco, and Buick. In 2022, GM sold 5.9 million vehicles and operated 396 facilities across six continents.
GM was the world’s largest automaker for almost eight decades before losing the spot to Toyota in 2008. The automaker lost its lead in the US to Toyota in 2021 and dropped to third place behind Ford. In 2022, GM regained first place in US sales from Toyota.
The company will make $2 billion in cost cuts between 2023 and 2024 to attain sustainable growth and remain one of the top Toyota competitors. [5]
4. Nissan Motor Corp.
Year founded: 1933
Headquarter: Yokohama, Kanagawa, Japan
Nissan is a Japanese multinational automobile manufacturer owned by Renault. The company offers SUVs, sedans, trucks, and heavy commercial vehicles. In 2022, Nissan had 131,460 employees and sold around 3.23 million automobiles.
Nissan and Toyota offer affordable automobiles. In 2022, the Rogue was Nissan’s bestseller when it sold 186,480 Rogues. However, Nissan’s global sales dropped 20.7% to about 3.23 million vehicles.
In Feb 2023, Nissan unveiled an electric car like a roadster with eye-catching styling, keeping Nissan as one of the best alternatives to Toyota. [6]
5. Mercedes-Benz
Year founded: 1926
Headquarter: Stuttgart, Baden-Württemberg, Germany
Mercedes-Benz is a leading German automaker that produces luxury vehicles. The company offers SUVs, sedans, trucks, buses, and coupes. In 2021, Mercedes-Benz employed around 152,000 people and operated car repair services in over 30 countries globally.
Mercedes-Benz is renowned for manufacturing elegant, high-class, and durable vehicles, including the Mercedes-Benz C-Class, one of the most popular luxury cars worldwide. In 2022, Mercedes-Benz delivered 2.05 million passenger vehicles.
The brand reported a 37% increase in sales for its high-end Maybach models driven by higher demand in China, Japan, Korea, and the Middle East. Mercedes-Benz is the top Toyota alternative for luxury cars. [7]
6. Hyundai Motor Group
Year founded: 1967
Headquarter: Seoul, South Korea
Hyundai is a South Korean multinational conglomerate specializing in auto manufacturing. The group was formed after Hyundai acquired automotive giant Kia Motors and merged the two companies. In 2022, Hyundai had over 262,000 employees.
Hyundai IONIQ 6 won the Best in Class Award in 2022 in Euro NCAP’s Large Family Car category. [8] Both Hyundai and Toyota offer affordable non-luxury cars. In 2022, Hyundai Tucson scored 8.7 out of 10 based on US News’ research.
The redesigned 2022 Hyundai Tucson won the Best Compact SUV for the Money, Best Compact SUV for Families, and Best New Cars for Teens categories, making Hyundai one of the top Toyota competitors. [9]
7. Bayerische Motoren Werke (BMW)
Year founded: 1916
Headquarter: Munich, Germany
BMW is a German multinational automaker that offers luxury vehicles and motorcycles. The company started as a manufacturer of aircraft engines but later switched to the auto sector. In 2022, BMW had over 133,000 employees and sold 2.4 million vehicles and over 202,000 motorcycles globally.
Both BMW and Toyota are leading carmakers with several top-selling brands, but BMW is synonymous with high-end luxury and comfort. The company manufactures and assembles its tech-oriented premium vehicles and motorcycles in 31 facilities in 14 countries globally.
In Mar 2023, BMW invested around £600 million in its Mini plant at Cowley, Oxford, UK. The brand introduced its first generation of electric Minis at the Cowley plant in 2019. BMW is one of the best alternatives to Toyota for luxury vehicles. [10]
8. Audi
Year founded: 1909
Headquarter: Ingolstadt, Bavaria, Germany
Audi is a German auto manufacturer and a subsidiary of Volkswagen. The automaker offers gasoline-powered, hybrid, and all-electric cars. In 2022, Audi had 91,000 employees and delivered 1.61 million vehicles. [11]
The luxury car brand offers several all-electric models, including Audi Q4 e-tron, Audi e-tron GT Quattro, and Audi e-tron. In 2022, Audi increased deliveries of all-electric cars by around 44.3% to 118,196.
The company also recorded a surge in sales for its non-electric models, including the Audi A3 at 12.1%, Audi A4 at 8%, Audi Q5 at 2.7%, and Audi Sport at 15.6%. Audi is one of the top Toyota competitors in the luxury automotive sector. [12]
9. Honda Motor Co., Ltd.
Year founded: 1948
Headquarter: Minato, Tokyo, Japan
Honda is a Japanese manufacturer of automobiles, motorcycles, and power equipment. The company’s top-selling auto brands include Honda CR-V, Honda Civic, Honda HR-V, Acura TLX, Acura RDX, Acura NSX, and Honda ZR-V.
In 2022, Honda’s sales dropped by 19.1%.
Honda’s offerings included the small-sized HR-V and the larger Honda CR-V, but the auto manufacturer also introduced Honda ZR-V, a medium-sized vehicle between the HR-V and the CR-V. In 2023, Honda increased CR-V’s price to compete with Toyota Kluger, Mazda CX-8, and Hyundai Santa Fe.
Unlike Toyota, Honda uses the agency model that eliminates dealers from its sales operations. The company sells cars directly to customers at a fixed national price and is one of the top Toyota competitors. [13]
10. Tata Group
Year founded: 1945
Headquarter: Mumbai, India
Tata is an Indian multinational automotive conglomerate. The group owns several brands, including Tata Motors, Jaguar Land Rover, and Tata Technologies. In 2022, Tata Motors sold over 500,000 passenger vehicles in India.
Tata produces passenger cars, trucks, vans, coaches, and buses. The company offers luxury cars and utility sports vehicles bearing Jaguar and Land Rover makes. In 2022, Tata Motors India was only 25,713 units behind Hyundai Motor India.
The Indian subsidiary closed the gap with market leaders Toyota and Hyundai in Dec 2022 and is the top Toyota competitor in India. [14]
11. Tesla, Inc.
Year founded: 2003
Headquarter: Austin, Texas
Tesla is an automotive and clean energy company founded by Elon Musk. The company manufactures electric vehicles and batteries. In 2022, Tesla had 127,800 employees and sold 1.31 million cars.
Tesla competes against Toyota in the automotive sector, but Tesla specializes in electric cars. The company also offers Powerwall, one of the most popular home battery pack systems globally.
In 2021, Tesla changed its policy to only sell Powerwall with a rooftop solar or solar roof order. However, the company reversed its decision in Mar 2023 and reopened orders for Powerwall as standalone units. Tesla is the best alternative to Toyota for electric vehicles and batteries. [15]
12. Suzuki
Year founded: 1920
Headquarter: Hamamatsu, Japan
Suzuki is a Japanese multinational corporation that manufactures automobiles, motorcycles, all-terrain vehicles, and wheelchairs. It also offers outboard marine and internal combustion engines. In 2022, Suzuki had over 69,000 employees.
Suzuki develops small, affordable cars with off-road capabilities. The company attained its first global commercial success with the launch of Suzuki Jimny in 1973. In 2023, Suzuki made 300 Suzuki Jimnys to celebrate the model’s illustrious past.
The 2023 Suzuki Jimny Heritage is based on the GLX trim level and features red mudflaps, retro body decals, and 15-inch alloy rims. Suzuki is an affordable alternative to Toyota. [16]
13. Volvo Group
Year founded: 1927
Headquarter: Gothenburg, Sweden
Volvo is a Swedish automotive manufacturer. It is one of the most well-known car brands globally and sells to customers in over 100 countries. In 2022, Volvo had around 100,000 full-time employees, and the company’s top-selling models include XC60, XC40, and XC90.
Volvo offers sedans, wagons, buses, trucks, and heavy commercial vehicles. The company seeks to become a fully electric car maker by 2030 and a climate-neutral organization by 2040.
In 2022, Volvo reported a 12% decrease in sales to 615,121 cars. The company has production plants in Sweden, Belgium, the US, and China and is a worthy alternative to Toyota. [17]
14. Mazda
Year founded: 1920
Headquarter: Hiroshima, Japan
Mazda is a Japanese automotive manufacturer. The company is best known for its CX series, including CX-3, CX-5, CX-30, CX, 40, CX-60, and CX-70. In 2022, Mazda had over 46,000 employees and launched its first electric vehicle, the MX-30.
Mazda offers gasoline-powered, hybrid, and all-electric cars. The brand’s best-selling model in the European region is the CX-5 with a petrol-powered and a new mild-hybrid gasoline version. In 2022, Mazda launched the CX-60 in Europe and unveiled the CX-90 in the US. The company has doubled down on its rear-wheel-drive (RWD) SUV offerings.
In 2023, consumers can expect a two-row CX-70 version in North America and the latest CX-80 model in Europe. Mazda is a fast-growing Toyota competitor. [18]
15. Aston Martin
Year founded: 1913
Headquarter: Gaydon, United Kingdom
Aston Martin is a British automobile manufacturer that produces luxury sports cars and grand tourers. Its vehicles compete against Toyota’s luxury and sports brands, including Lexus. In 2022, Aston Martin had 3,000 employees and operated around 160 car dealerships in 53 countries.
Aston Martin offers high-end luxury cars, including the DB series featured in James Bond movies. The company is the royal car dealer for the Prince of Wales and operates the Aston Martin Formula 1 team to target millionaires.
In 2022, Aston Martin sold 6,400 cars, but the brand reported a £495 million loss due to increased spending on new models and supply chain problems. Yet, Aston Martin is an ultra-luxurious alternative to Toyota. [19]
References & more information
- Reuters Staff (2023, Jan 30). Toyota defends title as world’s top-selling automaker in 2022. Reuters
- McIntosh, J. (2022, May 19). Lexus teases all-new 2023 RX ahead of the end-of-May reveal. Driving Magazine
- Schwartz, J. (2023, Mar 8). Volkswagen focuses on productivity in a challenging year. Reuters
- Lassa, T. (2023, Feb 6). A $2 Billion Loss Spells Trouble in Dearborn. Auto Week
- Vanhulle, L. (2023, Jan 31). GM plans $2 billion in cost cuts after record 2022 earnings. Automotive News
- Bruce, C. (2023, Jan 30). Nissan Global Sales Plummeted By 20.7 Percent In 2022 To 3.23 Million Cars. Motor1
- Reuters Staff (2023, Jan 10). Mercedes-Benz sold 2.05 million passenger cars in 2022. Reuters
- Hyundai Motor Company (2023, Jan 13). Hyundai IONIQ 6 is Euro NCAP’s ‘Best in Class’ Car 2022 in the ‘Large Family Car’ category. PRNewswire
- Doell, Z. (2023, Jan 5). 2022 Hyundai Tucson Review. US News
- Leggett, T. (2023, Mar 9). BMW invests in Oxford plant as it plans more electric Minis. BBC News
- Autocar News (2022, Mar 17). Audi Group posts record profits despite global sales dip. Autocar
- Frankenberg, T. (2023, Jan 10). Audi delivered over 100,000 electric models in 2022. Audi Media Center
- Ottley, S. (2023, Feb 12). Honda’s horror year is 2022, but 2023 will be the true test for CR-V, HR-V, and the new ZR-V. Cars Guide
- Singh, V. (2023, Jan 2). Tata Motors sells over 500,000 PVs in 2022, beats Hyundai in Dec. India Today
- Lambert, F. (2023, Mar 10). Tesla opens direct Powerwall orders again. Electrek
- Padeanu, A. (2023, Mar 3). Suzuki Jimny Heritage Special Edition Gets Retro Look, Red Mudflaps. Motor1
- CET (2023, Jan 5). Volvo Cars report Full Year 2022 sales, share of fully electric cars at 10.9%. Cision
- Padeanu, A. (2023, Feb 13). Mazda CX-80 Debut Confirmed for Late 2023 in Europe. Motor1
- Jolly, J. (2023, Mar 1). Aston Martin losses more than double amid hopes for a turnaround in 2023. The Guardian
- Featured Image by Christina Telep
Tell us what you think? Did you find this article interesting? Share your thoughts and experiences in the comments section below.
S.K. Gupta
Ava Abbott
Add comment