The year is on track for another annual sales record but some automakers are ahead of the pack.
As has been the case for the past two years, new-vehicle sales in Canada are running at record levels, up six per cent from last year at the halfway point.
But not all automakers are sharing equally in that success. While few brands are actually selling fewer vehicles, quite a few are lagging the overall industry advance.
Here’s how we grade them in our annual mid-year report card:
Acura ended 2015 with sales up 7.5 per cent , aided by the introduction of the new TLX sedan. But not only have TLX sales fallen back in 2016, along with those of most other passenger cars, so have those of Acura’s utility vehicles, leading to a 7.4 per cent decline for the brand at mid-year. It’s taken so long to get the halo NSX sports car to market that it’s now old news. It’s the recent arrival of a substantially refreshed 2017 MDX utility and its prospects for turning things around that keeps Acura’s grade from being even lower.
Audi continues to be strong with sales up 16.0 per cent so far in 2016. While Audi’s cars are holding their own, it’s the strength of the brand’s utility lineup that’s driving most of the gains. Audi seems to have escaped the brunt of VW’s diesel repercussions and it’s moving well towards the cutting edge of the vehicle electrification strategy.
With sales up 8.6 per cent in the first half, BMW is holding its own in the luxury car ranks. As is the case for most marques, it’s the brand’s utility vehicles that are leading the way, with the X5, X3 and X1 all making gains and offsetting some losses on the high-volume passenger-car side. That said, both the new 2 and 7 Series cars are doing well within their segments. BMW remains second overall in luxury car sales but is well behind class-leading Mercedes-Benz.
How can the automaker that topped the sales charts in 2015 and is leading the field midway through 2016 get just an A-minus grade? A lack of momentum. Year-to-date sales are tending towards flat (+2.9 per cent) in a strong up market and FCA has given up half-a-point of market share. The Jeep brand is doing well and Grand Caravan continues strong, while the new Town & Country finds its legs. But Ram sales are lagging the market and there’s no big new product launch on the horizon.
The Blue Oval is gaining fast on FCA with YTD sales up 11.7 per cent and a market share gain of seven-tenths of a point from a year ago. In spite of early doubts about its aluminum structure, the best-selling F-Series pickup is setting new records and both the Edge and Explorer are showing strength. A major refresh for the 2017 Fusion should help lagging car sales. Ford is now just 2,500 units behind FCA.
General Motors outperformed the market and its Detroit rivals in terms of sales gains in 2015. But it fell back in the first half of 2016, with sales up just 2.3 per cent, well behind the market average. In the process it gave up four-tenths of a point of market share. Its full-size trucks aren’t matching their rivals’ sales increases and, although both Malibu and Impala are making gains, GM’s best-selling car, the Cruze, is not.
Sales for the brand are up 11.7 per cent at mid-year, the most of any mainstream manufacturer, and it has regained four-tenths of a percent of share as a result of a 12.2 per cent increase in Civic sales. The new Civic addresses most of its predecessor’s criticisms and adds more body styles and models. The new Pilot is gaining sales, CR-V is holding its own, and there’s a new Accord in the pipeline.
While Hyundai showed some weakness in 2015, it has regained its form in 2016 with sales up 7.7 per cent and a tenth-of-a-point of share gain. Elantra sales have rebounded with an all-new 2017 model retaking second place in car sales. But the star of Hyundai’s show is the new Tucson crossover, sales of which are up 75 per cent. A new Accent is also in the pipeline, as well as an all-new hybrid.
Infiniti has consolidated gains made in 2014 and 2015, slightly outperforming the market with an 8.6 per cent advance in 2016. Its sales increases all came from its utility vehicles, with both the QX50 and QX60 showing double-digit improvements. The forthcoming addition of the stylish QX30, co-developed with Mercedes-Benz, will give it a foothold in the higher-volume luxury compact crossover segment.
The low absolute number of Jaguar sales won’t rattle its high-volume rivals but the Indian-owned British luxury brand is achieving remarkable growth within its rarified strata, registering a 48.4 per cent increase in sales in the first half of 2016. The near-simultaneous arrival of the XE sedan, and particularly the F-Pace utility vehicle, is responsible for that sales surge, although the F-Type sports car remains the brand’s best seller.
Kia sales were up 1.5 per cent in the first half but that gain was well below the market average. It came mostly from big increases in sales of the new Sorento and especially the Sportage, Kia’s compact utility is based on the same architecture as Hyundai’s Tucson. The Sedona minivan also made gains but passenger car sales were off across the lineup. Improved supply of Forte models as their production moves to Mexico might improve that situation.
Land Rover sales just keep on growing, increasing 39.5 per cent from the same period in 2015 and adding another tenth of market share. Sales of the sporty Evoque actually fell but that loss was more than offset by a 12-fold increase in Discovery Sport sales, as well as increases for the Range Rover, Range Rover Sport and Discovery Sport.
Lexus sales leveled off in 2016, up just 1.3 per cent at mid-year. The pattern is familiar: utility sales are up, particularly those of the Canadian-made RX models and the big LX570, while those of passenger cars are down across the board — even more so than for some competitors.
Mazda seems caught in a bind. It’s building great products and garnering multiple awards, up to and including World Car of the Year for the MX-5, but those laurels just aren’t translating into sales. They’re actually down 1.9 per cent at mid-year, largely due to a near collapse in sales of the brand’s best-selling Mazda3 compact car.
Mercedes-Benz increased sales 7.6 per cent and, just as importantly, picked up two more tenths of added share, to remain the clear sales leader among luxury brands. Sales of Mercedes’ best-selling C-Class were down but more than offset by strength among new offerings, including the GLA and GLE utilities and CLA sedan. A new GLC should strengthen the utility lineup in the second half and there’s a new high-tech E-Class in the pipeline.
Mini sales were flat through the first half. Some of the range’s more fringe and sparsely selling models have been dropped, simplifying the lineup. There’s also a push to attract a public that’s more interested in quasi-SUVs than sporty hatches with models like the Countryman. But it’s the traditional Mini Cooper that continues to drive the brand. A new wagon-like Clubman model might help expand the appeal.
After a down year in 2015, Mitsubishi has regained its momentum, more than recovering past losses to achieve a 16.3 per cent ‘s sales increase at mid-year 2016, and regain a tenth of lost share. Not only are the brand’s well-regarded SUVs doing well but also its best-selling Lancer sedan is defying the general malaise in passenger car sales with a 23.2 per cent increase.
For the third year in a row, Nissan boasts a double-digit sales increase at mid-year. The brand has gained three-tenths more of market share. The brand’s best-selling Rogue ranks 11th in overall sales and fourth among utility vehicles. Sales of its refreshed Murano mid-size crossover are up more than 70 per cent. There’s sales strength in its Frontier pickup and the Sentra and Maxima passenger cars as well, adding balance to its portfolio.
With sales up 8.0 per cent in the first half, Porsche continues to break sales records, albeit at a slightly more moderate pace. Those increases are driven by the mid-size Macan utility vehicle, which has now surpassed its big-brother Cayenne as Porsche’s best seller, and an all-new Cayman, as well as by steady gains for the 911 line. There’s a new, more attractive Panamera in the wings that could give Porsche a bigger foothold in the ultra-luxe sedan market too, and various levels of electrification coming.
With a fresh new model, Smart’s sales are up more than 60 per cent through June, but that still amounts to only 600 units. While the Smart fits its market niche well, it has little prospect for any significant growth at this time.
While Subaru is building great product and has been routinely setting monthly sales records, they’ve been by small margins. Mid-year sales are up just 1.9 per cent, largely because of a decline in Legacy sedan sales. Forester and Crosstrek sales are well up and most other models are holding their own, but Subaru doesn’t have as broad a range of utility vehicles as many competitors — and that’s where the market growth is.
With an 8.6 per cent sales increase in the first half, Toyota surpassed the market average and gained another 0.3 per cent of market share. The Canadian-built RAV4 is the star of the lineup with a 20.0 per cent sales increase, making it Canada’s best-selling utility vehicle. Those gains more than offset minor losses for the Corolla, and the Tacoma pickup and Toyota’s utility vehicles are also doing well.
Despite Volkswagen’s diesel emissions scandal and its bungled approach to addressing the issue, it’s perhaps surprising that Volkswagen’s sales have fallen only 14.2 per cent year-to-date. Golf sales are actually up slightly but Jetta sales have dropped dramatically. And Volkswagen is not well represented in the utility market where most of the growth is. That deficiency is being addressed.
A year ago, we said that Volvo’s future could depend on the success of the new XC60. It has now arrived and it has indeed turned around the brand’s fortunes. Sales are up 34.6 per cent in the first half and Volvo has regained a tenth-of-a-point of market share. The XC60 will be followed up by a new, equally modern S90 flagship sedan this fall and a corresponding V90 wagon next spring.
