Detroit Three automakers are set to lose market share to Asian rivals this week. Experts said soaring gasoline prices pushed buyers toward fuel-efficient models. General Motors, Ford, and Stellantis could see their combined share fall to 36%. Meanwhile, hybrid-heavy brands like Toyota and Honda now account for over half of sales.
Oct 1 (Reuters) - The Detroit Three are expected to lose ground to Asian rivals when they report third-quarter US sales this week, according to experts, as soaring gasoline prices due to the Iran war push buyers towards hybrids and more fuel-efficient models.
General Motors, Ford Motor and Stellantis could see their combined market share dip to around 36% in the third quarter, while hybrid-heavy Asian brands including Toyota and Honda are expected to account for more than half of new vehicle sales in the period, industry research firm Cox Automotive said.
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Hybrids have emerged as a top choice as consumers look to avoid high gasoline prices, which hit a national average of $4.43 a gallon in September, according to AAA, compared with $3.20 a year earlier.
While borrowing costs have declined, this has done little to ease affordability pressures, said research firm JD Power, as higher new vehicle prices and lower trade-in values push monthly payments higher. The average transaction price for a new vehicle rose 1.9% to $50,089 in August from a year earlier, according to Cox.
"Higher-income buyers who aren't as squeezed by borrowing costs are likely doing the heavy lifting right now, while budget-conscious households are forced to hang onto older cars much longer," said Jessica Caldwell, head of insights at Edmunds.
Cox estimates overall US sales in the quarter at about 4.1 million units, down about 1% from a year earlier.