Toyota Takes Third Place in US Auto Sales

Strategic Insights -

Toyota Motor Corp. has taken third place in U.S. auto sales for the first time, passing the North American division of DaimlerChrysler AG, according to recent data. Despite this achievement, Toyota's sales have not entirely come at the expense of its Japanese counterparts. In fact, the combined share of Japanese automakers in the U.S. market rose to about 35 percent in 2006. Toyota's increase in sales, however, has been significant, with a 12.5 percent rise in 2006, reaching 2.54 million vehicles sold. The company's production in the U.S. also increased, with 53.6 percent of Toyota automobiles manufactured in North America contributing to its overall North American sales.

Key Takeaways:

  • Toyota took third place in U.S. auto sales in 2006, passing the North American division of DaimlerChrysler AG.
  • The combined share of Japanese automakers in the U.S. market rose to about 35 percent in 2006.
  • Toyota increased its U.S. sales by 12.5 percent in 2006 to 2.54 million vehicles.
  • The company's production in the U.S. also increased, with 53.6 percent of Toyota automobiles manufactured in North America contributing to its overall North American sales.
  • Toyota's sales have been driven by its fuel-efficient small and compact vehicles, which have attracted customers due to soaring gasoline prices.
  • The company's expansion of production at its U.S. factories and provision of jobs has also been seen as reducing the likelihood of renewed trade disputes with U.S. automakers.
  • The percentage of Toyota automobiles manufactured in North America to its overall North American sales fell below 60 percent for the first time since 1996.
  • Other Japanese automakers, such as Honda, posted record sales, while Nissan Motor Co., Mitsubishi Motors Corp., and Mazda Motor Corp. faced declines in U.S. sales.

Statistics:

  • Toyota's U.S. sales in 2006 increased by 12.5 percent to 2.54 million vehicles.
  • Honda's U.S. sales rose 3.2 percent to 1.50 million vehicles in 2006.
  • The combined share of Japanese automakers in the U.S. market rose to about 35 percent in 2006.
  • The percentage of Toyota automobiles manufactured in North America to its overall North American sales fell to 53.6 percent in 2006.
  • Overall, the U.S. auto market declined 2.6 percent in 2006, with 16.55 million vehicles sold.

Sources:

  • [Kyodo News International, January 4, 2007]
  • [McClatchy-Tribune Business News]
  • [Automakers' data]