History of Toyota
Toyota in the 2020s: Innovation, Challenges, and Leadership Transition

By 2020, Toyota reclaimed its position as the world’s largest automaker, selling 9.528 million vehicles globally, including those from its subsidiaries Daihatsu and Hino Motors, despite an 11.3% drop in sales due to the COVID-19 pandemic. Toyota continued its push into electric mobility, forming a joint venture with BYD in April 2020 to develop battery electric vehicles (BEVs).
In 2021, Toyota strengthened its partnerships with Hino Motors and Isuzu, creating the Commercial Japan Partnership Technologies Corporation to develop fuel cell and electric light trucks. Toyota also acquired Lyft’s self-driving technology unit for $550 million, merging it with its automation-focused Woven Planet Holdings division. In December, Toyota announced a ¥8 trillion ($70 billion) investment in electric vehicles, planning to launch 30 EV models and achieve sales of 3.5 million EVs annually by 2030.
Toyota’s resilience during the global semiconductor shortage reflected its improved supply chain strategies, revising its just-in-time model to require suppliers to hold larger inventory reserves. This adjustment, first made after the 2011 Tōhoku earthquake, helped mitigate disruptions caused by COVID-19.
In 2022, Toyota faced challenges with its first mass-produced all-electric vehicle, the bZ4X, recalling 2,700 units due to defective bolts that could cause wheels to detach. Despite this, Toyota maintained its position as the world’s best-selling automaker for the third consecutive year and pledged $5.6 billion toward EV battery production, including an increased investment in its North Carolina plant. Toyota also collaborated with the British government on a hydrogen-powered pickup truck project, receiving significant funding for research.
In 2023, Akio Toyoda stepped down as CEO, passing leadership to Koji Sato, former head of Lexus. This transition marked a shift in focus as Toyota aimed to expand its EV and connected vehicle initiatives. That year, Toyota also implemented its largest employee wage increase in two decades after union negotiations.
By 2024, Toyota had unveiled ambitious plans to build an electric car battery plant in Fukuoka, serving the Asian market. In November 2024, Toyota and Joby Aviation completed a test flight in Japan using an electric vertical take-off and landing (eVTOL) air taxi, signaling the company’s expansion into the future of transportation innovation.
Toyota’s ability to adapt to global challenges, invest heavily in new technologies, and maintain its position as a market leader underscores its ongoing commitment to innovation and sustainability in an increasingly competitive industry.