Overview
When it comes to car manufacturing and sales, the world is dominated by two big players – Toyota and Volkswagen
But which company sells the most cars in the world?
Recent reports suggest that Toyota has managed to beat Volkswagen to replace it as the world’s largest car maker.
What factors have enabled Toyota to become the world’s largest carmaker?
This article looks deeper at the successes of Toyota and Volkswagen, and why Toyota is now the top car maker.
Toyota has taken the lead with a total of 10.6 million cars sold in 2018, compared to Volkswagen’s 10.3 million.
Figures from the first quarter of 2019 further illustrate Toyota’s growth, with the company selling 2.37 million vehicles, compared to Volkswagen’s 2.22 million.
While this may seem like a small difference, it is significant given that Volkswagen is the largest carmaker in Europe.
This could be partly attributed to Toyota’s focus on the importance of research and development in order to keep up with changing consumer needs, as well as its emphasis on technology.
Toyota’s Strategy
Toyota’s strategy has been to focus on the customer, with a strong focus on customer service and quality.
The company has also made use of technology in order to keep up with the demands of modern consumers, such as by introducing hybrid models of their cars, as well as investing in autonomous and connected vehicles.
This investment in technology has allowed Toyota to remain competitive in the increasingly technological global car market.
Volkswagen’s Strategy
Volkswagen has also taken an approach to focus on the customer and innovation, with a strong focus on research and development.
The company has also been investing heavily in electric vehicles, in order to meet the demands of changing consumer preferences.
However, Volkswagen’s strong presence in Europe could be a disadvantage, as the market continues to decline, which in turn could affect Volkswagen’s sales.
Global Markets
In terms of global markets, the United States is still the biggest consumer of cars, with 17.5 million vehicles sold in 2018.
However, it is worth noting that the US market is dominated by light trucks, which includes SUVs and pick-up trucks, rather than cars.
China, meanwhile, is the second largest consumer of cars, with 24.6 million vehicles sold, followed by Japan with 5.3 million vehicles sold.
Europe is the fourth largest consumer of cars, with a total of 15.3 million vehicles sold in 2018.
Trends
One of the key trends driving the growth in global car sales is the emergence of the middle class in Asia and other emerging markets.
As the middle class continues to grow, so too does their demand for cars.
Another trend driving the growth in car sales is the increasing availability of consumer financing for car purchased.
Finally, there is also the increasing demand for luxury vehicles, which is driving up the global car sales.
Analysis
When it comes to selling the most cars in the world, Toyota and Volkswagen remain neck and neck.
Toyota has managed to overtake Volkswagen to become the largest carmaker due to their focus on innovation and customer service, as well as their ability to keep up with changing consumer needs.
Volkswagen has also been making significant investments in electric and autonomous vehicles.
Looking at the global markets, it is evident that the US is still the largest consumer of cars, followed by China, Japan and Europe.
The growth of the global car market is due to trends such as the emergence of the middle class in Asia and other emerging markets, as well as the increasing availability of consumer financing.
Conclusion
In conclusion, while Toyota has managed to topple Volkswagen as the biggest carmaker in the world, the two are still neck and neck in terms of global sales.
Both companies have been making significant investments in innovation and technology in order to remain competitive in the global car market.
The growth of the global car sales is being driven by the emergence of the middle class in Asia and other emerging markets, as well as the increasing availability of consumer financing.
