Competition Gap among Top Vehicle Manufacturers in the U.S. Smaller Than Ever, According to IHS Automotive
December 18 2014 - 7:00AM
Business Wire
A recent IHS Automotive analysis of U.S. new vehicle market
share among vehicle manufacturers indicates the competition at the
top has never been greater.
In the past 14 years, market share range among the eight largest
OEMs in the United States has quietly declined from nearly 26
percentage points in 2000 to just 14 percentage points through
October of this year, reflecting how intense the competition truly
is in this market. The volume dynamic has also changed, with nearly
17.5 million vehicles registered in 2000. Based on the IHS
Automotive projection for U.S. sales in 2015 to reach 16.7 million
units, to gain 1 percent share, an automaker needs to sell an
additional 167,000 vehicles. In 2009, during the trough of the
recession, 1 percent could be gained by selling 104,000
vehicles.
General Motors and Ford Motor Company continue to lead the U.S.
market, though their shares have shifted dramatically over time.
Chrysler (now FCA) and Toyota have exchanged ranks in third place
since 2000, with Toyota’s share increasing. Honda has remained as
the fifth largest OEM based on market share, and its share has
improved over time. Hyundai has improved nearly 6 percentage points
in the timeframe, the largest increase among the top
manufacturers.
U.S. Market Share for Leading New
Vehicle Manufacturers
2000
Oct. 2014 CYTD GM
28.2% GM
17.6% Ford 24.1%
Ford 14.7%
DaimlerChrysler 15.7%
Toyota Motor Sales 14.5%
Toyota Motor Sales 9.3%
FCA 12.7% American Honda
6.7%
American Honda 9.4% Nissan Motors America
4.3%
Nissan Motors America 8.6% Volkswagen of
America 2.5%
Hyundai 8.1% Hyundai
2.3%
Volkswagen of America 3.3%
Source: IHS Automotive; Data based
on new registrations of light vehicles in the U.S.
Corporate shares include all makes sold in
the U.S. by that corporation
“Since no OEM wants to slip in the rankings, each is doing
everything possible to retain each tenth of a point share;
including speeding up product redesign or launch programs, while
opting to avoid risky product programs that could cause disruption
in their product portfolio,” said Tom Libby, solutions consultant
at IHS Automotive, who worked on the research.
With no manufacturer accounting for more than 18 percent of the
U.S. market, the battle for consumer share will be fought on the
marketing front more than ever before. This parity among the
leading OEMs is moving them to identify and utilize the most
efficient marketing tools across a wide array of potential
marketing channels, including traditional national TV and print
advertising and a nearly overwhelming variety of digital
advertising tools and platforms. The increased communication tools
enable each OEM greater freedom to adopt their own product and
marketing programs to gain share and more effectively direct
messages to the consumers that will most appreciate the attributes
of each product. As shares of the four leading OEMs are so close,
since the order could change with just a half point gain or loss of
share, every initiative is critical.
Great for Consumers, Great for the Industry
Consumers are the winners in this scenario. “These conditions
drastically improve the value proposition for consumers shopping
for new vehicles, with greater competition, more refreshed products
and increased pressure on prices, which contributes to strong
retail demand,” Libby said.
IHS Automotive forecasts that this tight market share dynamic is
the new normal for the U.S. auto market, with no change in rank and
only small changes in share among the top four for the next several
years. GM is forecast to retain its lead, followed by Ford, Toyota
and Chrysler. With this new normal dynamic going forward,
competition within the U.S. auto market will remain fierce, the
analysis said.
About IHS Automotive
(www.ihs.com/automotive)
IHS Automotive, part of IHS Inc. (NYSE: IHS), offers clients the
most comprehensive content and deepest expertise and insight on the
automotive industry available anywhere in the world today. With
last year’s addition of Polk, IHS Automotive now provides expertise
and predictive insight across the entire automotive value chain
from product inception—across design and production—to the sales
and marketing efforts used to maximize potential in the
marketplace. No other source provides a more complete picture of
the global automotive industry. IHS is the leading source of
information, insight and analytics in critical areas that shape
today’s business landscape. IHS has been in business since 1959 and
became a publicly traded company on the New York Stock Exchange in
2005. Headquartered in Englewood, Colorado, USA, IHS is committed
to sustainable, profitable growth and employs about 8,800 people in
32 countries around the world.
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IHS AutomotiveMichelle Culver,
+1-248-728-7496Michelle.Culver@ihs.comorIHS Media Relations,
+1-303-305-8021press@ihs.com
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