Asian Car Brands Gain Ground on Detroit's Big Three

Strategic Insights -

Despite a struggling US economy and overall downturn in US car sales, Asian car brands, such as Hyundai, Suzuki, and Mitsubishi, have experienced double-digit sales increases while Detroit's Big Three, General Motors, Ford, and DaimlerChrysler, have seen declines in sales. Hyundai, up 49 percent, and Suzuki, up 22 percent, were among the top performers, while Mitsubishi's sales increased by 20 percent.

Key Takeaways:

  • Hyundai Motor America's total 2000 sales reached 244,391, a 49 percent increase over 1999, thanks to its 100,000-mile, 10-year warranty, which appears to have erased concerns about Korean quality in many buyers' minds.
  • Mitsubishi's sales were up 20 percent to 314,417, with the company introducing a new compact sedan, the Lancer, in September, and a new mini-SUV, code named the ASX, which will go on sale in 2002.
  • Suzuki has been a very small player in the U.S. market in recent years but healthy sales of V-6 powered Grand Vitara sport utilities and Esteem sedans had the company up 22 percent in 2000.
  • Mazda's sales were up only about 4.8 percent, and analysts blame a generally bland and underpowered product line, which Mazda hopes to address with the introduction of more resource-intensive products such as the Protege compact and a new rotary-powered sports car.
  • Isuzu sells only trucks in the U.S. market and is seen as a small player, but the company's lineup, led by the Rodeo and Trooper SUVs, is looking a bit dated.

Statistics:

  • Hyundai's 2000 sales increased by 49 percent to 244,391.
  • Suzuki's 2000 sales increased by 22 percent to 60,845 vehicles.
  • Mitsubishi's 2000 sales increased by 20 percent to 314,417.
  • Mazda's 2000 sales increased by 4.8 percent.
  • The overall US car market is expected to decline by 5 percent in 2001.
  • Hyundai plans to sell 60,000 Santa Fes and 12,000 XGs in 2001, which would put its sales over 300,000.
  • Mazda plans to sell 40,000 to 50,000 Tributes plus more Protege compacts in 2001.

Sources:

  • The Orange County Register (Santa Ana, Calif.)
  • Hyundai Motor America
  • Mitsubishi Motor Sales of America
  • American Suzuki Motor Corp.
  • Mazda North American Operations
  • American Isuzu Motor
  • Knight Ridder/Tribune Information Services