Which Brands Benefit Most from Toyota Consideration Decline?
SAN FRANCISCO and CAMBRIDGE, Mass. — In the wake of widespread recalls by Toyota, consumers have become much more apt to consider rival brands, especially those from domestic automakers. And it appears the two brands gaining the most interest at Toyota's expense are Chevrolet and Ford.
In fact, a recent Jumpstart Automotive Media survey indicates that among shoppers who have decided not to consider Toyota any longer because of the recent issues, almost (48 percent) said they were considering Chevrolet, instead.
Meanwhile, 17 percent swapped out Toyota on their shopping list for Ford and 14 percent did the same for Chrysler.
Overall, the data notes that four-fifths of shoppers claimed they would think about buying from the Big 3, following the Toyota recalls.
Also, 51 percent of shoppers said they are no longer interested in looking at Toyotas when they buy a new car, while a third said they might think about buying a Toyota should they put off their purchasing plans.
Only 16 percent are sticking with Toyota and are still considering the brand, expressing confidence that the issues will be fixed.
"This data provides some interesting perspective about the mindset of U.S. car shoppers," explained Joe Kyriakoza, vice president of strategic insights at Jumpstart Automotive Group.
"It's almost as if they've been waiting for a reason to support the domestic auto brands," he continued. "We believe Toyota's current position has opened up new sales opportunities for brands like Chevy and Ford."
Continuing on, the CarGurus online auto community provided a breakdown of shopping consideration for specific recalled Toyota models versus comparable rival models.
Basically, the site measured the share of online search volume for the models 10 days before they were recalled, and then the same for the 10 days after the announcement.
The company's research found that searches for many recalled Toyota models are fading, while substitute models from other brands are picking up Toyota's share.
For example, the Toyota Corolla saw a 13.4-percent dip in search market share 10 days after the announcement versus its level 10 days prior to the news. Gaining the most ground from this model's loss was the Chevrolet Cobalt (up 10.7 percent) and the Ford Focus (up 9 percent).
The Toyota Camry showed an 8.4-percent decline and the Ford Fusion benefited the most, climbing 15.4 percent, followed by the Chevrolet Impala (up 7.9 percent).
The Toyota Highlander's search share fell 6.2 percent. Meanwhile, the Ford Explorer showed a 22-percent upswing and the Chevrolet Tahoe jumped 16.7 percent.
Finally, the Toyota Rav4 showed a 16.1-percent dip in search share. The Honda CR-V was the top beneficiary (up 37.8 percent), but the Ford Escape (up 26.9 percent) gained some significant ground, as well.
"Industry experts have already noted that Toyota's problems could impact other carmakers," explained Langley Steinert, founder and chief executive officer of CarGurus.
"What is surprising, however, is how much Ford and Chevrolet in particular appear to have benefited from Toyota's troubles," Steinert continued. "These two domestic manufacturers could leverage this opportunity to take significant market share from Toyota."