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According to a statement from the Japanese automaker, Toyota's group companies posted a growth of 10% for vehicles sold overseas during the last year, rising up to 7.1 million. The results offset a 4% drop in sales in Japan to 2.26 million vehicles. The sales numbers show that Toyota beat GM in profitability. Let's remember that over the recent years, General Motors had to face a difficult period when it had to close plants, reduce plans for truck production and cut jobs.

Some of Toyota's executives admit they are nervous about becoming the world's biggest automaker as they are afraid to invoke a U.S. backlash similar to the "Japan-bashing" in the 1980s and 90s. Nonetheless, Toyota announced last month it plans to hit a target of 9.85 million vehicles sales worldwide this year, up 5% from last year.

The auto industry competition becomes even stronger as new rivals appear in China, Russia, South America and other regions. Analysts had also predicted weaker car sales for Toyota as U.S. growth slows and a growing gap in Japan's socioeconomic classes.

Looking ahead, Toyota plans to gain ground in new markets by setting up new overseas plants. The automaker aims to increase its production by 5% next year to 9.95 million vehicles. Despite strong competition, the company's projects seem encouraging for many analysts who believe it's just a matter of time before Toyota beats GM to become the biggest automaker in global sales.

In other automotive news, be sure to read up on the world's cheapest car, the Nano, which Tata Motors (NYSE: TTM) has just unveiled for under $2,500.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.