Honda Civic and Toyota Camry Inventories Increase image

The Honda Civic and the Toyota Camry might see production reduced as inventories continue to increase, according to RBC Capital Markets.

The Toyota Camry has surpassed its seasonal historical average inventory with more than 15 days supply last month and Honda Civic has added around 25 days than usual, according to Joseph Spak, a New York-based analyst for RBC. The Civic and Camry were the only models considered as a risk for reduced output from all 16 top-selling vehicles in the US.

Over the past six months GM, Chrysler and Ford have all added market share in the US, the first time when the Detroit Three gained first-half share in the past two decades. The Chevrolet Cruze and Ford Fusion mid-size sedan might have to increase production to meet demand. Honda spokesman Steve Kinkade said the automaker has a 60-day supply of Civics.

“Toyota is pulling out all stops to sustain its No. 1 market position against a slew of new competition,” wrote Spak, who has outperform ratings on both GM and Ford. “We continue to see downside risk to production schedules for the Civic line as inventories remain well above historical levels.”

Sales increase at Chrysler, GM and Ford has helped industrywide sales reach their highest level since 2007 and analysts predict that 15.4 million vehicles will be sold this year. In June, Chevy Cruze sales were up 73% to 32,871 units, surpassed only by Toyota Camry with 35,870 units.

Source: Bloomberg