Why Honda and Toyota’s Best Selling Car Is An SUV This Year

-5.81%
Downside
34.45
Market
32.45
Trefis
HMC: Honda Motor logo
HMC
Honda Motor

Honda Motor (NYSE: HMC) and Toyota Motors (NYSE:TM) have traditionally dominated the passenger car market in the U.S. However, new passenger car sales have been trending downward for the last couple of years in the U.S. On a year-to-date basis, passenger car sales are down 8.4% so far this year, even though overall vehicle sales are almost flat. This is largely because of the strong sales in the SUV and crossover segments, which have grown by 4.1% and 8.6% so far this year. The importance of this trend is underscored by the fact that for both Honda and Toyota their highest selling vehicle in August was an SUV, specifically, a compact SUV. These are the CR-V in the case of Honda and the  RAV4 in the case of Toyota.  As can be seen from the table below, CR-V and RAV4 sales have been becoming more and more important for both companies in recent years. The CR-V has overtaken Accord as Honda’s second highest selling vehicle in the U.S., while the RAV4 is on the cusp of doing the same to Corolla.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Honda Motor

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