Two Japanese automakers, Toyota (NASDAQ:$TM) and Honda Motor (NASDAQ:$HMC) generate a significant portion of their revenue from the US market. In 2016, the former was the third largest automaker in the US, with the latter ranking fifth. So, what are the two companies doing right to outperform their U.S. competitors in their home market?
A Closer Look
- Toyota increased its market shares to 16% in July 2017, compared to 14% from a year ago
- Honda Motor increased its market share to 11% from 10%
- General Motor’s market share stood at around 16%, lower than its previous 17.6%
- Ford Motor’s market share stood at 14%, lower than its previous 14.1%
Toyota
Toyota has been prioritizing its truck segment sales as demand for smaller cars have drastically decreased. In July 2017, Toyota was the only mainstream automaker to report a year-over-year rise in US sales. Further, Toyota has tapped into the heavily saturated Chinese market by increasing their sale units to 106,000, a 10% increase year-to-year.
Honda
Honda indicates similar innovative efforts. Specifically, the company plans to launch electric cars in Europe and China in 2018. Honda will launch the urban EV Concept, the first electric-vehicle to impress European customers. The long goal will be to electrify two-thirds of its automobiles by 2030, as a part of the Honda’s Vision 2030 Strategy plan.
Featured Image: twitter
