Detroit Three automakers set to lose market share to Asian rivals
XLY•The Detroit Three could see their combined U.S. market share fall to around 36% in the third quarter as buyers favor hybrids and fuel-efficient models. Cox Automotive estimates overall U.S. sales at about 4.1 million vehicles, down roughly 1% year over year.
1. Asian brands gain ground
General Motors, Ford and Stellantis could see their combined U.S. market share dip to around 36% in the third quarter, while hybrid-heavy Asian brands including Toyota and Honda are expected to account for more than half of new vehicle sales, Cox Automotive said. Toyota’s sales are expected to rise 2.2% year over year, while GM is expected to retain its U.S. market lead despite an estimated 5.2% sales decline.
2. Fuel costs favor hybrids
Hybrids have emerged as a popular choice as consumers respond to higher gasoline prices. The national average reached $4.43 a gallon in September, compared with $3.20 a year earlier.
3. Affordability pressures persist
Hyundai Motor Group is forecast to surpass Ford in quarterly U.S. sales for the first time, with 511,421 units versus Ford’s 504,172. Stellantis sales are estimated to fall about 1% to 317,330. Cox said the average new-vehicle transaction price rose 1.9% to $50,089 in August from a year earlier, while Edmunds’ Jessica Caldwell said higher-income buyers are likely driving sales as budget-conscious households hold onto older cars.
