Customer Logins
Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
Customer LoginsToyota Camry's market share increasingly under pressure
It is no secret that Toyota owes much of its climb in the US market to the success of the Camry. This sedan has been the most popular car in the US every year since 1997, with the exception of 2001 when it was edged out by the Accord, and Toyota has not hesitated to stress the Camry's leadership position in its advertising. The Camry and Corolla represent the core of Toyota's car lineup in the US, though obviously there are other successful Toyota cars. The Camry's position at the center of the Toyota make is similar to that of other flagship models, including the BMW 3-Series, Ford F-Series, Porsche 911, Jeep Grand Cherokee and Dodge Caravan. It is hard to imagine any of these models not being a part of its respective make.
Yet the Camry is now under intense pressure from several competitors. In the past two years, redesigned versions of the Passat, Fusion, Malibu, Altima, Optima and Accord have come to market. As a result, the Camry's share of the non-luxury midsize car segment (the largest in the industry) has declined from 20.1% in 2008 to 15.6% in the first two months of 2013 (see chart below). And, in both March and April, the Camry was the runner-up in the segment behind the Altima in March and the Accord in April (March and April results are based on sales data). For the first four months of 2013 in total, though, the Camry remains the segment leader with 132,540 sales versus 121,965 for the runner-up Accord.
Toyota obviously will have to decide what strategy to pursue with this leading vehicle. Alternatives include:
- Stand pat and let the chips fall where they may, relying on Camry's underlying natural appeal and huge owner body to carry it forward
- Incentivize the Camry (or add to existing incentives) with rebates or other incentives that the competition is reluctant to use
- Offer a new, de-contented trim level at a lower price, thereby avoiding incentives but providing a lower price point
- In the long run, Toyota may launch a Camry coupe to face off against the Accord and Altima coupes
In the near term, the competition will get worse: a new Mazda6 has just arrived at dealers and a refreshed Malibu comes out later this year. Next year a redesigned Subaru Legacy and at least one Alfa-based Chrysler Corporation midsize car debut.
The Polk Forecasting Practice predicts that while the volumes of the segment leaders - Camry, Accord, Altima and Fusion - will remain close to one another in the near term, Camry will hold onto the sales crown for the 2013 calendar year.
Tom Libby is manager, loyalty practice and industry analysis, IHS Automotive
Posted 6 May 2013