Home / Auto News / News article: Honda, Toyota Falling Behind in Key Market Segments - AutoGuide.com News
 |  Jun 13 2011, 11:30 AM

When it comes to family sedans and smaller cars and SUVs, for the last two decades, Honda and Toyota ranked as top choices for many Americans. Not any more. It seems that more and more U.S. motorists that once drove Corollas, Civics, Accords and Camrys exclusively are now looking at alternatives.

Although supply of certain Toyotas and Hondas is still proving problematic following the March 11 earthquake and Tsunami in Japan, the decline in both automaker’s fortunes is being blamed on a lot more than just natural disasters.

According to Eric Nobel, of the Orange, California based consulting firm The Car Lab, both Honda and Toyota are losing ground, because their products haven’t been competitive in crucial market segments since the first half of the last decade. He particularly cites Toyota’s slipping quality control and the widespread recalls that have tarnished its reputation among American consumers, as well as Honda’s lack of innovation.

Although the Camry is still currently the best-selling car in America, it’s market share of the mid-size sedan segment has been dropping since 2008. Currently it’s around 9.6 percent, that contrasts sharply with 14.2 percent a couple of years ago.

Toyota’s Corolla and Honda’s Civic and Accord haven’t fared much better. Even Consumer Reports, which once championed these cars as the top of the list when it came to recommended buys, didn’t rate a single one of them as a top pick in it’s most recent findings, instead choosing cars such as the Hyundai Sonata and Nissan Altima over the former ‘favorites.’

Even domestic brands such as Ford and Chevrolet, once dismissed by many, are making a comeback. According to Edmunds.com, some 14.3 percent of people normally shopping for a Civic are looking at the new 2012 Focus as an alternative, while more than 10 percent are considering the Chevy Cruze.

Neverthless, Toyota says that it is “not going to stand still,” according to U.S. spokesman Joe Tetherow and will be “coming back with something significant.” That something will likely comprise a range of new or significantly updated models, including a next generation Camry.

Whether it will be enough to win back customers and turn the tide of flagging sales remains to be seen.

[Source: Bloomberg]