Toyota Closes 2025 on High Note Despite EV and Tariff Headwinds

Core Insights - Toyota Motor reported strong U.S. deliveries of 2,518,071 units in 2025, reflecting an 8% year-over-year increase [1][8] - Electric vehicle sales reached 1,183,248 units, up 17.6% year-over-year, constituting 47% of total sales [1][8] - The company maintained its position as the second-largest automaker in the U.S. by sales volume, following General Motors [2] Sales Performance - In Q4 2025, Toyota sold 652,195 vehicles, marking an 8.1% increase compared to Q4 2024 [3] - Electrified vehicle sales in Q4 2025 totaled 290,840 units, a 1.9% decline, accounting for 45% of total sales [3] - The Toyota division ended 2025 with sales of 2,147,811 vehicles, reflecting an 8.1% year-over-year increase [3] Division Performance - The Lexus division reported year-end 2025 sales of 370,260 vehicles, up 7.1% year-over-year [4] - In Q4 2025, Lexus division sales reached 99,685 vehicles, showing a 2.3% improvement [4] Market Dynamics - Toyota absorbed U.S. tariff costs to sustain demand, particularly for entry-level models like the Corolla sedan [5] - Executives indicated that the ability to absorb tariff-related costs may not continue in the near future [5] - Declining electric vehicle demand is a concern for Toyota moving forward [5]