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Toyota Motor (TM +0.01%) said that its U.S. sales fell 16.5% in September. Nearly all of its models suffered year-over-year declines, as buyers seeking larger vehicles turned away from Toyota's mainstay sedans and fuel-efficient crossovers.
It was Toyota's largest monthly U.S. sales decline since September 2011, when the company was still working to rebuild inventories after the March 2011 earthquake and tsunami in Japan.
For the third quarter, Toyota's U.S. sales fell 9.9% from the third quarter of 2018, but the company still sold enough vehicles to outpace rival Ford Motor (F 0.02%) for second place in the United States.
Here's how Toyota's quarterly result stacks up against its five largest-selling rivals.
Automaker | Q3 2019 U.S. Sales | Change vs. Q3 2018 |
---|---|---|
General Motors | 738,638 | 6.3% |
Toyota Motor | 627,194 | (9.9%) |
Ford Motor | 580,251 | (4.9%) |
Fiat Chrysler Automobiles | 565,034 | 0.1% |
Honda Motor | 429,214 | 2.4% |
Nissan Motor | 327,354 | (4.8%) |
Through the first nine months of the year, Toyota's U.S. sales were down 2.5% from the same period in 2018.
First, a note about that quirk of the calendar. Toyota noted that September of 2019 had just 23 "selling days," two fewer than September of 2018, making for a somewhat unfavorable year-over-year comparison. ("Selling days" exclude Sundays and holidays, when many auto dealerships have traditionally been closed.)
But even using the company's "DSR" (daily selling-rate-adjusted) figures, Toyota didn't have a lot to celebrate in September, as consumers continued to move away from sedans while rivals continued to flood the market with new crossovers and SUVs:
There was one bit of good news in Toyota's September U.S. sales numbers, and it's one that gives us some insight as to how Toyota is approaching the market right now. Sales of Toyota-brand hybrids rose 27.4% in September from a year ago, 38.5% on a DSR basis.
The Toyota brand's U.S. sales chief, Jack Hollis, said that Toyota is "doubling down" on hybrids for the U.S. market, adding hybrid versions of more of its mainstay models as other automakers continue to invest in trucks and SUVs. "We plan to further advance our spot as the hybrid leader for years to come," he said.
I think we'll see Toyota continue to emphasize taking market share from segments where rivals are retreating. Specifically, as companies like Ford and GM drop most of their sedan models, Toyota will continue to invest aggressively in its Corolla, Camry, and other sedans, betting that it can still find growth in a shrinking overall market by taking a larger share over time.
That will probably be enough to keep Toyota on course, but investors might question whether it will be enough to drive profit growth. We'll learn more when Toyota reports its quarterly earnings next month.