automotive

VW, Subaru, Nissan Expected To Gain Market Share

Volkswagen is the brand to watch in 2017, according to analysts at Cox Automotive and Kelley Blue Book.

"The worst days of the diesel matter are mostly behind them,” said Kelley Blue Book Executive Analyst Rebecca Lindland. “Volkswagen won back market share in the first half of the year thanks to loyal owners and is poised to gain more in the second half by appealing to new owners with strategic SUVs launching into the heart of the market."

With the market down in 2017, automakers are fighting for sales and many are already adjusting production to keep supply in check. Still, some automakers are flourishing. Subaru gained the most market share during the first five months of 2017, driven by excellent product, strong marketing and a showroom of vehicles perfectly matched with current consumer demand.

"In the past few years, the market has come to Subaru," Lindland says. "Their brand is strong and their products are exactly what customers are shopping for.  They've been smart with incentives, managing inventory very well." At current pace, Subaru could pass Hyundai in U.S. market share by the end of the year, she adds.

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Nissan is also poised to gain share in 2017. The company has fresh product, including the all-new Rogue Sport, which went on sale in May, aimed directly at the heart of the crossover segment.  The company also continues to be very aggressive with incentives and fleet sales.

"Nissan is gaining market share by piling on incentives and eating up fleet demand others abandoned,” Lindland says. “As long as profitability holds up, there's no reason to believe the brand will change strategy in the second half of the year.”

Cox Automotive analysts believe Chrysler, Ford and Jeep will continue to struggle with market share in calendar year 2017. All three brands lost share in the first part of the year. Chrysler's product line will soon be reduced to two entries, the Pacifica minivan and the 300 sedan.

Ford, the best-selling brand of vehicles in the U.S., will continue to face market share challenges in 2017 according to Cox Automotive data, with rapidly dropping car sales and an aging portfolio of SUVs and crossovers. The all-new Expedition will help grow sales, but is not expected to be in market until late this year. 

"What Ford really needs right now is excitement in their showroom, beyond the GT supercar," Lindland says. "The new EcoSport, a highly anticipated subcompact SUV, will be a welcome addition. Unfortunately, that product is still six-to-eight months from launch. Until then, Ford has only the Escape to fight for sales in the hottest part of the market.”

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