Sign in Subscribe
Automobile industry

Asian Automakers Grab Biggest Share of US Car Market, but Face Stiff Competition

Strategic Insights

— 1 min read

Asian automakers sold 47.4% of all cars and trucks in the US market in 2009, surpassing Detroit's three players for the first time, according to Autodata Corp. But with rivals in Detroit offering efficient and small cars, Asian manufacturers face a challenging year ahead. The market share gains of 2009 will be hard to extend as consumers become increasingly cautious about heavy debt, high unemployment, and rising gas prices.

Key Takeaways:

  • Asian automakers' market share rose to 47.4% in 2009, surpassing Detroit's three players for the first time.
  • The gains in 2009 were largely driven by the dominance of Toyota Motor Corp. and Honda Motor Co. in smaller and greener cars.
  • Detroit's three players, including Ford Motor Co. and General Motors Co., have countered with a revamped compact Focus, an all-electric Volt, and new small cars like the Aveo, which gets about 40 mpg on the highway.
  • The market share of Asian automakers in 2009 was the highest ever recorded, with Toyota selling 530,000 Priuses worldwide in 2009.
  • Honda has struggled against Toyota's dominance in hybrids, with its Insight hybrid flopping.
  • Michael Robinet, an auto industry analyst, predicts that strong products from Detroit, expanding European manufacturers, and upstart Chinese companies will work to erode some of the market share gained by Asian companies.
  • The midsize sedan market, once the exclusive domain of Toyota, Honda, and Nissan Motor Co., is now competing with the Ford Fusion, Hyundai Sonata, and GM's Chevrolet Malibu.

Statistics:

  • 47.4%: Market share of Asian automakers in the US car market in 2009.
  • 44.2%: Market share of Detroit's three players in 2009.
  • 21%: Industry sales drop in 2009, the worst level since 1982.
  • 10.4 million: Number of cars and light trucks sold in 2009.
  • 17 million: Average number of cars and light trucks sold in the previous decade.
  • 530,000: Number of Priuses sold worldwide by Toyota in 2009.

Sources:

  • Autodata Corp.
  • Michael Robinet, auto industry analyst at CSM Worldwide consulting firm
  • Los Angeles Times
  • Detroit News
  • Chicago Tribune

Read more