The U.S. motor vehicle and parts retail trade reported revenue of just over 1.53 trillion U.S. dollars in 2022, an increase compared to 2021. However, this financial performance and Toyota’s market position have struggled amid the global automotive semiconductor shortage, raw material price increase, and consumer price inflation. In June 2022, both Toyota and Lexus—Toyota Motor Corp’s luxury brand—were among the five brands with the lowest days of vehicle supply in the U.S., while General Motors‘ brands faired better.
Toyota Motor Corp brands are among the U.S. market leaders
Toyota is one of the market leaders in North America. Its RAV4 model was the best-selling sport utility vehicle in the United States in 2022 and was at the top of Canadian sales in the last quarter of 2021. Furthermore, the most popular passenger car in the U.S. in 2022 was the Toyota Camry, with its sales adding up to over 295,200 units. The Toyota Motor Corp not only competes within the traditional internal combustion engine car market but also reports a strong presence in the electric vehicle market. Between the first quarter of 2020 and the second quarter of 2022, Toyota consistently ranked as the best-selling hybrid and plug-in hybrid electric vehicle brand in the U.S.. However, while its Lexus brand records good levels of consumer satisfaction, it had also fallen out of the top three luxury car brands in the U.S. in 2022, edged out by Tesla, Mercedes-Benz, and BMW.Part of Toyota's success is due to the automaker’s ad spending in the U.S. In 2022, Toyota Motor Corp spent some 1.55 billion U.S. dollars in advertising, making it the third biggest spender on advertising, behind its main competitors General Motors and Stellantis. The manufacturer had also been increasing its research and development expenses between 2022 and 2023, investing in new technologies such as powertrains and advanced mobility solutions, including integrated vehicle systems.
A Strong consumer satisfaction across brands
Toyota’s eponymous brand and its luxury marque Lexus recorded a year-over-year dip in U.S. sales in the 2022. Still, this drop in transactions did not impact the brands‘ popularity. Toyota and Lexus came in second and first as the most reliable car brands in the U.S. as of December 2023, awarded scores of 76 and 79 percent reliability.Consumer satisfaction with the brands was also one of the highest in the country. In 2023, Toyota was the brand with the highest satisfaction index score, at 84, while Lexus ranked as the close second, sharing the spot with Tesla. Both Japanese brands have improved consumer satisfaction since 2021, suggesting that while supplies rapidly decrease amid market challenges, Toyota Motor Corp remains a safe bet for U.S. drivers. This popularity is reflected in Toyota Motor Corp’s regional revenue distribution, with North America representing around 37.3 percent of the company’s total revenue.
