Honda Civic Takes Top Spot in Canadian Car Sales, GM Fights to Regain Market Share

Strategic Insights -

The Honda Civic, assembled in Alliston, Ont., as well as Ohio and Japan, has taken the lead in Canadian car sales, displacing the Chevrolet Cavalier, as reported by General Motors of Canada Ltd. The Civic's surge in sales, with 9,756 units sold in the first three months of 1998, has moved it ahead of the Cavalier, with 8,924 units sold, and the Pontiac Sunfire, both of which are built in Michigan, Ohio, and Mexico. Honda Canada Inc. dealers have reported strong sales of the compact Civic, while General Motors Corp. has seen its market share decline.

Key Takeaways:

  • Honda Civic sales dominated in the first three months of 1998, with 9,756 units sold, pushing it to the top spot in Canadian car sales.
  • The Chevrolet Cavalier and Pontiac Sunfire, both built in the US and Mexico, trailed behind, with 8,924 and 8,407 units sold, respectively.
  • General Motors Corp.'s market share declined by 5.3 percentage points in March to 27.7%, down from its traditional share of about 33% of the Canadian market.
  • The decline in market share has pushed GM to introduce hefty and costly incentives this spring to buy back market share.
  • Industry analyst Dennis DesRosiers noted that the decline may "kickstart" GM out of complacency.
  • Chrysler Canada Ltd. has seen its market share rise to 22.1%, thanks in part to its surge in sales of the compact Neon.
  • Honda's market share has dropped to 7.1% from 7.2% a year earlier, despite strong sales of the Civic.
  • The Big Three automakers have been battered by fierce competition from Honda and Chrysler, as well as auto makers from Japan and Europe.
  • Ford's sales rose slightly in March, but the company still trails behind GM and Chrysler in total vehicle sales.

Statistics:

  • 9,756: Number of Honda Civics sold in the first three months of 1998
  • 8,924: Number of Chevrolet Cavaliers sold in the first three months of 1998
  • 27.7%: General Motors Corp.'s market share in March, down from 33% a year earlier
  • 22.1%: Chrysler Canada Ltd.'s market share in the first three months of 1998, up from 18.9% a year earlier
  • 1.7 points: Rise in Toyota Canada Inc.'s market share to 8.2% in the first three months of 1998
  • 14,000: Number of cars, trucks, and minivans that each point of market share represents on a yearly basis
  • 30.2%: General Motors Corp.'s market share for the first three months of the year, down from 33% a year earlier
  • 33%: General Motors Corp.'s traditional market share of the Canadian market for most of the decade

Sources:

  • Greg Keenan, "Honda roars ahead of GM in car sales," The Globe and Mail, March 24, 1998