Canadian Car Market Shifts as Toyota and Honda Surge Ahead

Strategic Insights -

The Canadian car market is undergoing significant changes as Toyota and Honda continue to pull ahead of long-time leader General Motors, whose share excluding fleet business has plummeted by almost half since 2005. According to DesRosiers Automotive Consultants, Chrysler has fallen to 10th place behind several Asian and European brands, while GM, Ford, and Chrysler still dominate the consumer truck market. The shift towards cars from trucks and SUVs is driven by rising fuel costs and environmental concerns, leaving the Detroit-based automakers in trouble.

Key Takeaways:

  • General Motors' share of the passenger car market excluding fleet business has declined by almost half since 2005, from 23.1% to 12.1%.
  • Toyota roared past GM in 2008 in the car market and has increased its lead, with 16.4% market share, while Honda moved into second place with 14.6% market share.
  • Chrysler has slid to less than 3% of the car market and dropped to 10th place behind Mazda, Nissan, Volkswagen, Hyundai, and Kia.
  • Hyundai's share of the consumer car market jumped to 11.3% in the first half from 6.9% in 2008, while Mazda improved to 9.6% from 8.5%.
  • General Motors' car sales, excluding fleet business, fell to 135,154 in 2008 from 168,055 in 2005.
  • Toyota's retail car business jumped to 145,151 from 118,761 in the same period.
  • Hyundai does not break out fleet sales in its car numbers, but insiders say it represents only a tiny percentage of the company's business.
  • Other automakers say they are also relying less on fleet sales to drive business.
  • GM has retained its title as the leading retailer to consumers with 16.7% of the car and truck market, but that's off substantially from 28.5% in 2000.
  • Toyota holds 14.4% of the car and truck market, up from 8.8% in 2000, while Ford has 12.7%, a drop from 16% in 2000.

Statistics:

  • General Motors' share of the passenger car market excluding fleet business: 23.1% (2005) vs. 12.1% (present).
  • Toyota's market share: 8.8% (2000) vs. 16.4% (present).
  • Honda's market share: 6.8% (2000) vs. 14.6% (present).
  • Chrysler's market share: 7.8% (2005) vs. <3% (present).
  • Hyundai's market share: 6.9% (2008) vs. 11.3% (present).
  • Mazda's market share: 8.5% (2008) vs. 9.6% (present).
  • General Motors' car sales, excluding fleet business: 168,055 (2005) vs. 135,154 (2008).
  • Toyota's retail car business: 118,761 (2005) vs. 145,151 (2008).

Sources:

  • DesRosiers Automotive Consultants
  • Quoted by Dennis DesRosiers, president of DesRosiers Automotive Consultants