It's no secret that automotive manufacturers are taking a massive knock in sales due to the ongoing semiconductor chip shortage, a general shortage in raw materials, and the ongoing effects of the war in Ukraine. The chip shortage is by far the biggest stumbling block, but the war has left several manufacturers without access to essential parts.

The two most prominent manufacturers in the world are experiencing problems. Toyota recently slashed its production forecast, while Volkswagen only recently found a replacement supplier for its wiring looms made in Ukraine. In 2023, it's all about managing losses instead of boasting about gains.

Still, Toyota looks set to become the world's largest manufacturer for the third year in a row, with sales only slipping by 5.8 percent during the first four months of 2022.

During the first four months, Toyota has already managed to sell one million more vehicles than Volkswagen. Toyota officially stole VW's title in 2020 and has kept it since. In 2020, Toyota produced 9,528,753 cars, and in 2021 it made 9,562,483. While these figures may sound impressive, both companies sold close to 11 million vehicles in 2019 before the COVID-19 pandemic hit.

Toyota's year-on-year slippage sits at 5.8%, while VW sales dropped by 26%.

Toyota continues to outpace VW due to a better action plan. Toyota's president, Akio Toyoda, recently told employees that the company was reexamining manufacturing plans with its suppliers to avoid exhaustion. That was back in March when Toyota set a new record for global output.

VW is also struggling in China, which is its biggest market, where sales dropped 30% through April. China currently has a massive appetite for EVs, and VW can't build them fast enough. With Tesla and Mercedes-Benz setting up shop in China, the competition is fiercer than ever.

Volkswagen also has a vast following in Western Europe, which continues to be heavily disrupted by the Ukraine war. The US is also pushing Toyota sales up. Toyota overtook Ford for the first time in 2021, selling 1,933,099 cars, while Ford only managed just over 1.8 million. The main driving forces behind Toyota's sales figures are the RAV4, Camry, Highlander, and Tacoma.