It is no small feat overtaking the world’s top carmaker and Volkswagen would have every reason to feel good about surging ahead of Toyota in the first half of this calendar.

VW has already articulated its vision of being right on top in the leadership stakes by 2018 and achieving the target three years before schedule is no mean achievement. And if this means being ahead of a giant like Toyota, this becomes even more special.

Yet, it is still a million dollar question if VW can sustain the lead in the long-term. For one, Toyota has already made it known that it would take a pause in 2015 to build a base for the future. This is part of its TNGA (Toyota New Generation Architecture) initiative which is intended to build better cars. The company is also taking it easy with expansion plans across its global facilities and would rather that existing capacities be optimised first.

VW, on the other hand, is an automaker that is stepping on the gas in a hurry. It has a slew of successful brands in its kitty ranging from Volkswagen, Audi, Skoda and Bentley to Bugatti, Porsche and Lamborghini. In addition, it is also strong in the commercial vehicle space with brands like Scania and MAN.

Where VW has a particularly strong edge over Toyota is the Chinese market where it is the clear leader with annual production of over 3.6 million units. It has earmarked substantial investments for China till 2018, the year it is keen to be tops in the automobile arena. And what better growth driver than the world’s largest car market whose production is tipped to touch nearly 30 million units by 2020.

Yet, VW has a lot of catching up to do in North America where Toyota is far more comfortably placed. Both companies are still coping with the challenges of the Indian market. The tug-of-war between the world’s two top auto companies is going to generate a lot of excitement in the coming years.

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