Toyota capped a record 2025 with global sales reaching 11.3 million vehicles, a 4.6% year-over-year rise that keeps it the world’s largest automaker and extends its lead over Volkswagen.

Even as tariffs weighed on the landscape, Toyota raised its full-year operating profit forecast for the fiscal year ending March 2026, helped by cost reductions and resilient demand outside the U.S.

To safeguard supply and export competitiveness, Toyota boosted U.S. factory output by 10% and intensified hybrid production.

Volkswagen is ramping up for 2026 with new electric models like an ID. Polo under 25,000 euros and refreshed ID lineup, aiming to regain Europe-focused volume and narrow the gap with Toyota.

The U.S.-Korea trade backdrop includes a Korea-U.S. deal lowering tariffs on many products to 15%, but renewed tariff threats could raise duties back to 25%, affecting Hyundai’s plans.

Toyota’s strategy centers on reliable, well-known models with a gradual electrification path, contrasting with Volkswagen’s heavy EV push in Europe that hasn’t yet paid off amid consumer hesitancy.

Toyota’s growth comes with flat China sales, where local competitors like BYD are intensifying competition, and ongoing tariff considerations influence exports.

Hyundai remains heavily reliant on imports in the U.S. but aims to boost domestic production to over 80% by 2030, including new Georgia facilities.

Toyota is set to report its Q3 fiscal results on February 6, with broader annual vehicle sales, production, and exports data typically released ahead of the results.

Looking ahead, Toyota plans new models in 2026 including refreshed Hilux and Land Cruiser, the next-generation RAV4 full-year launch, and continued diversification across hybrids, EVs, and traditional engines.

Overall, Toyota maintains its leadership through adaptability and volume, while Volkswagen pursues strategic shifts to address regional demand and propulsion mix.

Hyundai Motor Group posted revenue growth in 2025 but saw operating profit decline as tariffs weighed on margins, with tariff costs totaling about 4.1 trillion won.