The Auto Writer

Camry holds on to top position, but for how long?

Hyundai's Sonata is one of several models chasing Camry.

The Toyota Camry was the best-selling car model again in 2011, selling about 308,000 units. That figure is 40,000 units more than its nearest competitor, the Nissan Altima. For the 14th time in 15 years, the Camry has been the No. 1 selling car in America. The one year it finished second, it was beaten out by the Honda Accord. Last year, Accord sales fell to 221,000 units as the automaker recovered from a decimating March 2011 earthquake in Japan.

The Camry is all-new for 2012 or at least it represents the next generation model. The platform is the same, but the current model gets new sheetmetal and a new interior. Its engines are the same, but its hybrid edition was upgraded. Across the line, all 2012 Toyota Camry models get best in segment fuel economy or close to it.

Stronger Competition

While Toyota played it safe by bringing forth a new Camry that looks a lot like the old Camry, its competitors have taken to shake up the midsize sedan segment. Once dominated by appliance-looking vehicles that were built well and sold for a price families could afford, today’s midsize sedans are sportier, better equipped and more fuel efficient than ever before.

Nissan has been quietly creeping up on Toyota as its Altima is now the second best selling model in the segment, selling 20,000 more models than the Ford Fusion. The Fusion, along with the Hyundai Sonata and Chevrolet Malibu, each are selling more than 200,000 units annually. All three automakers in addition to Volkswagen with its Passat and Kia with its Optima, are expanding production in 2012 to respond to customer demand.

Falling Sales

Camry sells fell by 6 percent in 2011, largely due to the same reason that Accord sales fell: problems with suppliers and distribution in Japan following its devasting earthquake and subsequent tsunami. Toyota is targetting 360,000 Camry sales for 2012 as production has returned to year ago levels and as the market continues to rebound. Some Camry owners went to competitors in 2011 while others have been waiting to buy as dealer supplies are replenished. Like every other automaker with a new model on hand, sales should rise accordingly.

And that is where Toyota is likely to see more challenges coming forth. Both the Hyundai Sonata and Kia Optima were recently redesigned. The Korean cousins are cranking up production and taking a bigger slice of the market. The Volkswagen Passat is now built in Tennessee and that factory is being maxed out to handle demand. Talk that the factory will be expanded from its current 150,000 production limit to 300,000 cars have surfaced regularly of late.

Stronger Competition

The 2013 Chevrolet Malibu is already out, or at least the mild-hybrid version of this car, the next generation of this five-passenger sedan. Ford introduced its all-new Fusion, a sedan that rolls out its the brand’s EVOS design language. Nissan has kept its Altima redo tightly under wraps, but we should see this new model make its debut at the New York International Auto Show in April before going on sale in late summer.

All this spells trouble for Toyota as its competitors have learned to thrive in a segment it once dominated. Not too long ago, Toyota was gearing up to produce more than 500,000 Camrys per year. Even as the economy recovers, it will find that customers are taking a look at competiting models, finding some of these to offer better styling, more standard content and even better fuel economy.

Consumers Win

Toyota’s loss will be the consumer’s gain as customers flock to competiting brands selling cars on par with if not better than the Camry. Oh, did we say that a redesigned Honda Accord will be hitting the market later this year too?