Toyota beats GM to end 2010 as biggest automaker

But analysts have warned that following a year that saw the recall of millions of vehicles, a wave of lawsuits and record fines, the company is likely to soon surrender that lead as it battles to regain consumer trust overseas.

In 2008 Toyota ended General Motors' 77-year reign as the world's largest automaker but the road has been a bumpy one for the Japanese giant, facing the impact of the economic crisis, recalls and recently a strong yen.

Despite such challenges Toyota's global sales rose eight percent year-on-year to 8.418 million vehicles, narrowly beating the 8.39 million sold by a resurgent General Motors in 2010.

The Toyota group, including small car producer Daihatsu Motor and truckmaker Hino Motors, saw its Japanese sales jump 10 percent while foreign sales rose seven percent.

Toyota Motor alone sold 7.528 million vehicles, up eight percent from the previous year.

The firm's Prius hybrid broke the Japanese sales record for a single car model in 2010, helped by a popular government subsidy for green vehicles, according to a Japanese industry group.

The crisis prompted US congressional investigations as the Japanese firm was hit with penalties totalling US$48.8 million, including US$16.4-million to settle claims it hid accelerator pedal defects blamed for fatal accidents.

In response the automaker has added an extra four weeks to new vehicle testing, sped up the decision-making process and appointed regional quality control officers.

Akio Toyoda, the publicity-shy grandson of the company's founder, was thrust into the spotlight by the recalls amid criticism that he had not been proactive enough, eventually appearing before US lawmakers in Washington.

The automaker had previously said it expected global sales to reach 8.61 million vehicles for 2011.

Toyota shares closed at 1.33 percent higher in Tokyo trade today.