What tariffs? Toyota hits record sales in 2025, despite Trump’s auto levies

Japanese automobile giant Toyota Motor maintained its position as the world’s best-selling automobile manufacturer in 2025 with record sales of 10.5 million units. reported on Thursday.

Sale toyota and the luxury Lexus brand surpassed with a 3.7% increase compared to the previous year volkswagen 9 million units of the group and 7.27 million units of Hyundai Motor Group.

Demand has been particularly buoyed by strong sales of hybrid vehicles in the US, such as the Prius and RAV4 models.

Toyota’s strength in the US has come despite US President Donald Trump’s aggressive tariff regime, which initially imposed 25% tariffs on Japanese automotive vehicles and then reduced them to 15%.

Toyota and Lexus vehicle sales in the US increased by 7.3% to 2.93 million units.

The results reflect success in Toyota’s strategy to absorb the costs associated with tariffs rather than passing them on to consumers through broad price increases, while focusing on local production and other cost controls.

While the company estimated in November that U.S. tariffs would cost it 1.45 trillion yen ($9.7 billion) in the fiscal year ending March 2026, it also raised its full-year operating profit forecast, citing successful cost reductions and strong demand outside the United States.

In another sign of global automotive demand, Toyota rival Hyundai Motor reported global revenue growth of more than 6% in 2025 from a year ago, boosted by strong hybrid sales in the United States.

But operating profits took a hit from tariffs, falling 19.5% from the previous year, with US tariffs costing the South Korean automaker 4.1 trillion won.

South Korea and the United States agreed to a trade deal last year that reduced tariffs on most South Korean products, including cars, to 15% starting in November.

But on Monday Trump He threatened to raise the tax to 25%, saying the country’s legislature was not moving quickly enough to implement the deal. Hyundai shares fell nearly 5% on the news.

Hyundai’s sales in the US are more dependent on imports; the company said in September. only about 40% By 2025, 80% of U.S. sales will be produced domestically. The company hopes to increase local production at its Georgia facilities to more than 80% by 2030.

Toyota, which relies on imports for only one-fifth of its U.S. sales, has also taken a step in this direction. Aggressive US manufacturing expansionWe focus on hybrids.

Toyota Motor is scheduled to report fiscal third-quarter earnings on February 6. Analysts expect the firm’s operating profit to rise nearly 30% from the same period last year, according to estimates compiled by Reuters.

Toyota shares gained 3% in Thursday trading.