CNBC TV is reporting that Toyota Motor Corp's (TM) April auto sales in the U.S. topped DaimlerChrysler's (DCX) by approximately 8,000 vehicles for a total of 219,000+ sold.
It's unclear if Toyota has beaten out Daimler in the past but regardless it's clear that Toyota will supplant Daimler for the #3 spot in the U.S. on an annual basis, sooner rather than later, breaking up the Big-3 unit also consisting of struggling General Motors (GM) and Ford (F).
The rule has and always will be that market share can be increased in two ways: (1) taking market share from competitors, and (2) expanding markets either by changing demographics and/or entry into new markets.
You may or may not know that the Japanese domestic auto market doesn't offer great growth prospects. The biggest problem is the most obvious -- a stagnant and potentially declining national population. Based on population limitations and the mature auto market, recent sales growth opportunities have been limited to the mini-car and luxury segments. This is unlikely to change unless hybrids are sold on a larger scale and attract owners and potential buyers of mini-cars. I don't envision this happening because of the affordability, functionality (crowded and/or narrow roads, lack of parking, etc., make mini-cars desirable) and already low taxes on mini cars. This has left the Japanese autos with no choice but to look overseas for growth.
The Japanese autos have known for some time that in order to not only survive but to sustain profitability they must battle for existing market share while creating and entering new markets. Some have done better than others but it's hard to deny the momentum behind Toyota's global drive.
The most important market of all historically and for the foreseeable future is the U.S. Putting the BRIC and other high-growth opportuntities aside, let's take a look at April domestic auto sales numbers in the U.S.
April 2006 U.S. Domestic Auto Sales (y-o-y% change, total units sold)
Toyota (TM) +8.5%, 219,965
Honda (HMC) +6.5%, 139,124
Nissan (NSANY) -5.3%, 86,720
DaimlerChrysler (DCX) -6.0%, 211,365
Ford (F) - 7.0%, 262,722
General Motors (GM) -10.7% [7.3% decline on an adjusted basis], 339,796Sources: MarketWatch, CNNMoney/Yahoo! Finance
Interesting take aways from reading into the data include Ford's success and optimism in hybrid sales and Honda's strong truck sales given their competitive fuel economy.
In Japan, April new auto sales declined for the 10th consecutive month by 3.2% y-o-y. Mini-car sales rose for the 4th consecutive month by 5.2% y-o-y.
