Asian Domestic

Asian Domestic

Asian Automakers Win Record Share of U.s. Sales in June

Asian automakers won a record share of U.S. sales in June, aided by demand for fuel-efficient cars.

According to the data compiled by Bloomberg, the Japanese and South Korean companies last year boosted sales of 11 to 42.7 percent of the U.S. market. For Nissan, sales increased 23 percent, 11 percent for Honda and 10 percent for Toyota. On the same data, market share for the U.S. brands of General Motors Corp., Ford Motor Co. and Chrysler dropped to a record low 50.3 percent.

As new products and improvements in quality surveys for U.S.-based rivals failed to translate into higher sales, the Asian makers gained in terms of sales. Jack Nerad, Kelley Blue Books' senior market analyst, said U.S. consumers view vehicles from the Asian companies more favorably. He explained that there is still the perception of quality and reliability for the Asians that the domestic makers do not seem to be able to par, and that any fuel-price increase is always a positive for the Asians, specifically for the Japanese.

In January, the record for Asian market share was 42.1 percent. In June, sales declined 21 percent at GM, 8.1 percent at Ford and 1.4 percent at DaimlerChrysler AG's Chrysler. Total industry sales fell 3 percent to 1.46 million.

Aided by U.S. growth, Toyota overtook GM in the first quarter’s global vehicle sales. Moreover, the Toyota City, a Japan-based company, is gaining on Ford to become No. 2 in the U.S.

In June, Toyota sold a record 245,739 cars and light trucks (200 fewer than Ford) in the U.S.

Ford held a 39,558-vehicle lead during the first half. And it is only about a 10th of its 319,208- unit advantage in 2006.

Demand for fuel-efficient vehicles like the Prius hybrid has spurred Toyota as gasoline prices surpassed $3 a gallon in the U.S. for a third straight year. According to AAA's Daily Fuel Gauge Report, this year’s average price is $2.953 nationwide, compared with last year’s $2.926.

Jim Lentz, executive vice president of Toyota's U.S. sales unit, said in a conference call their incentive actions are being driven by the segment. He added that they still use incentives only when necessary.

Edmunds.com auto analyst Jesse Toprak called the Tundra discounts “unusually'' high for a Toyota model fewer than 6 months old. In an interview, he said the Tundra discounts show how determined Toyota is to grab market share in the profitable truck segment.

With a record of 16.9 percent, Toyota's market share in June climbed 2 percentage points from a year earlier.

Honda, maker of quality Honda shifter increased sales to 140,935 vehicles in June from 126,449 a year earlier. Its Civic small cars and CR-V spurred the Tokyo-based company’s sales increase with 39 percent and 59 percent increases, respectively, the CR-V being the best-selling sport-utility vehicle in the U.S.

An 8.4 percent U.S. market share increase for the month was earned by Honda and Acura autos.

Nissan reported its biggest monthly gain in more than a year.

Hyundai Motor Co., South Korea's largest automaker, said sales increased 11 percent with 49,368 vehicles sold. Ranking seventh in U.S. sales, Hyundai raised its market share to 3.4 percent, a 0.4-point gain.

Kia Motors Corp., a Hyundai affiliate, sold 26,288 vehicles, a 4.2 percent drop. Kia's market share remained at 1.8 percent.

Mazda Motor Corp. had 25,761 cars and light trucks sold, an 8.6 percent increase. As a result, Mazda's market share rose 0.2 point to 1.8 percent.

Fuji Heavy Industries Ltd.'s Subaru, a Toyota affiliate, reported a 7.4 percent drop to 17,108. Mitsubishi Motors Corp. sold 13,014 vehicles posting a 30 percent gain, largest among Asian nameplate.

Suzuki Motor Corp. sales climbed 8.5 percent to 10,325, while Japanese truckmaker Isuzu Motors Ltd. sold 676 vehicles, a 9.3 percent decrease.

About the Author

Evander Klum is a Business Administration graduate who hails from Alabama. He enjoys extreme sports and he is also a car racing fanatic. At present, he works as a marketing manager at an advertising agency in Cleveland.

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Asian Regional Governance $44.95 This book looks at the changing global and domestic political economies shaping the new regionalism in Asia, and examines the relationship between regional domestic, political and economic structures and forms of regional governance.

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East Asian Finance $24.99 This study analyzes the key issues and constraints - in terms of efficiency, access and safety and soundness - faced by East Asian countries in developing their financial markets which are at different stages of development, drawing on global experience. The study takes stock of the initiatives being undertaken at the regional level to foster greater financial integration as a means of deepening and diversifying financial markets, and on the policy issues that need to be addressed at the domestic level to deepen and diversify financial markets and to actually benefit from the actions that are being taken at the regional level.

Southeast Asian Affairs 2007 $65.9 Southeast Asian Affairs 2007 provides an informed and readable analysis of the events and developments in the region in 2006. In the regional section of this volume, the first two articles provide the political and economic overview of Southeast Asia, while the third and fourth examine the character of political development in the region. Eleven country reviews as well as five special theme articles follow, delving into domestic political, economic, security, and social developments during 20...

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