uploads/2018/11/5-18.png

Why Toyota Is Outperforming Ford in the US and China

By

Updated

Toyota’s Chinese sales

According to data compiled by MarkLines Data Center, Toyota Motor (TM), the largest Japanese automaker, reported a solid year-over-year (or YoY) increase of 19.5% in its October Chinese sales to ~134,600 vehicle units. This performance was far better than Ford’s 45% YoY decline in Chinese sales for the month—down to 58,204 units, as we discussed in the previous two parts of this series. In September, TM’s Chinese sales rose 17.7% year-over-year to about 140,000 units.

Comparing with US sales

Toyota’s US sales rose 1.4% YoY to 191,102 units in October, still much higher than its Chinese sales. The company’s October US sales volume wasn’t far behind than Ford’s (F) 192,616 units. From July to September, Toyota reported higher US sales than Ford.

Toyota’s 2017 global vehicle sales were at the third position, after Renault-Nissan Alliance and the European auto giant- Volkswagen (VLKAY) but higher than the largest US auto company, General Motors (GM).

Now, let’s take a closer look at another Japanese auto giant with Honda’s (HMC) September Chinese sales (IYK).

Honda’s China sales disappointed

Like its home market peer, Toyota, Honda Motor reported a YoY rise in its October sales in China—at about 3.1%. Last month, the company sold around 138,666 vehicle units in China, even higher than the 122,182 units HMC sold in the US market. In September, the company’s Chinese sales fell about 6.0% YoY.

The quality issue with Honda’s CR-V SUB was one reason for the decline in Honda’s Chinese sales in 2018 so far. In 2017, Honda’s Chinese sales were at 1.44 million units—much higher than Toyota’s 1.29 million units.

More From Market Realist