Foreign Brands Gain Ground in US Auto Market

Strategic Insights -

October sales numbers showed a significant shift in the US auto market, with foreign brands posting significant gains at the expense of American manufacturers. Toyota, Honda, and Nissan led the way, with sales increases of 12.6 percent, 3.2 percent, and 27.6 percent, respectively. Meanwhile, General Motors, Ford Motor, and DaimlerChrysler's American brands struggled, with Ford sales falling 4.9 percent and G.M. sales declining 3.6 percent. However, the foreign brands' gains were offset by a decline in sales of American-made sport utility vehicles, with the Ford Explorer seeing a 11.7 percent drop and the Chevrolet Tahoe a 5.2 percent decline.

Key Takeaways:

  • Foreign brands reported significant sales increases in October, with Toyota, Honda, and Nissan posting gains of 12.6 percent, 3.2 percent, and 27.6 percent, respectively.
  • American manufacturers, including General Motors and Ford Motor, saw their sales decline, with Ford's sales falling 4.9 percent and G.M.'s sales dropping 3.6 percent.
  • Sales of American-made sport utility vehicles, such as the Ford Explorer and Chevrolet Tahoe, saw significant declines, with the Explorer's sales dropping 11.7 percent and the Tahoe's sales falling 5.2 percent.
  • The industry's seasonally-adjusted annual sales rate plunged to 16.6 million, the weakest since January.
  • Asian and European auto makers saw their market share increase, with Asian makers taking 28.4 percent of the US market and European makers taking 3.8 percent.
  • DaimlerChrysler's market share dropped to 16.8 percent, down from 17.7 percent a year ago, due to declines in sales of its American brands.

Statistics:

  • Toyota October sales rose 12.6 percent compared to the same period a year ago.
  • Honda sales increased 3.2 percent in October.
  • Nissan sales jumped 27.6 percent in October.
  • Ford sales fell 4.9 percent in October.
  • G.M. sales declined 3.6 percent in October.
  • Sales of the Ford Explorer dropped 11.7 percent in October.
  • Sales of the Chevrolet Tahoe fell 5.2 percent in October.
  • Industry's seasonally-adjusted annual sales rate plunged to 16.6 million in October.
  • Asian auto makers took 28.4 percent of the US market in October.
  • European auto makers took 3.8 percent of the US market in October.
  • DaimlerChrysler's market share dropped to 16.8 percent in October.

Sources:

  • Ward's Auto Info Bank
  • Burnham Securities
  • General Motors
  • Ford Motor
  • DaimlerChrysler