Toyota Motor of Japan announced on Friday that its vehicle sales increased by 10.1% last year, making it the world's largest automaker for the second year in a row and pushing it further ahead of its nearest rival, Volkswagen AG of Germany.

In 2021, the automaker expects to sell 10.5 million vehicles, including those produced by affiliates Daihatsu Motors and Hino Motors.

In comparison, 8.9 million vehicles were sold in 2011. Volkswagen delivered 5% fewer vehicles in the same time as in 2020, marking the company's lowest sales results in ten years.Toyota and Lexus shock with reveal of 15 new electric cars | Autocar

A shortage of semiconductors during the coronavirus pandemic disrupted supply chains, increasing competition for the critical component among makers of consumer electronic products, forcing carmakers to reduce output.

However, the Japanese company has fared better than most other automakers in the wake of the pandemic since its home market, Japan, and portions of Asia, have been less affected than Europe.

Because of disruptions associated with COVID-19, Toyota, which reports third-quarter earnings on February 9, has stated that it is likely to fall short of a production target of 9 million vehicles in the fiscal year that ends on March 31.