Marketrend: Automotive.
July 18, 2004
The $850 billion global automotive industry continues to be paced the Japanese industry, which saw new-vehicle exports in June 2004 rise 7.9% from a year earlier to 420,092, because of healthy demand from the U.S. and Europe.
Passenger cars — In 1980, Ford, GM, Chrysler and the now-defunct American Motors Corp., owned 74% of the U.S. passenger car market, according to Ward’s AutoInfoBank. By 2004, Detroit’s share of passenger car sales had shrunk to 46%. U.S. sales are expected to reach 16.8 million vehicles in 2004, the fourth-best year ever. Meanwhile, Western European car sales rose 5.6% in June over last year, buoyed by an improving economy.
SUVs and trucks — The $303 billion U.S. automotive industry continue to be paced by SUV and truck sales, which account for 90% of its profits. SUVs captured 24% of sales in the U.S. in 2003, up from 10% in 1994. SUVs now represent nearly 12% of all registered vehicles here in the U.S. They’re also becoming more popular in Europe, despite higher gas bills, making up 5% of sales there, double the 1997 figure. According to J.D. Power and Associates SUVs will have 8% of the European market by 2008, accounting for about 1.3 million sales a year.
Best-sellers – The top three U.S. best-sellers are pickup trucks, with Ford Motor’s F-Series pickup America’s top-selling vehicle for 22 consecutive years. Toyota sold 53,293 hybrid vehicles worldwide in 2003 and is boosting monthly production of its fast-selling hybrid, the Prius, from 10,000 to 15,000 a month in 2005 to meet global demand. Phenomenon: “Gen-Y” cars, like Toyota’s Scion which are marketed street-team fashion. U.S. Mini sales hit 68,191 cars since its 2002 debut. Another hot category: “crossovers” like the Lexus RX330, which are up 55% so far this year. Finally, the new Dodge Magnum wagon is attracting SUV and pickup truck owners.
Hot: BMW X3 and 6-series luxury coupe, Cadillac Escalade, Chrysler 300, crossovers, MINI Cooper
Not: full-size SUVs, Hummer
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