The August 2007 sales numbers for foreign automakers Honda Motor Ltd. (NYSE: HMC), Toyota Motor Co. (NYSE: TM) and Nissan Motors (NYSE: NSANY) were up in the U.S., as all three boosted production output to meet increased demand in both the U.S. and Asia. According to the latest global figures, Toyota increased production 7.8% to 670,838 vehicles, while Honda bumped production 8.4% to 311,117 vehicles. Add Nissan's increase of 17% to 267,390 vehicles and you have a wallop of a production increase here.

Both Ford Motor Co. (NYSE: F) and Chrysler may have lost market share to this trio in September as well, possibly due to a growing number of buyers opting for more fuel-efficient vehicles. In many cases, the fuel-efficient offerings from all three Japanese automakers are perceived to be more readily available and more stylish compared to models from domestic automakers like Ford and Chrysler.

Indeed, increasing sales of fuel-efficient vehicles like the Toyota Corolla and Honda Accord are driving growth at both automakers. Japanese passenger car sales were up for the first time in 26 months in August, with higher sales of Honda's Fit compact and the CR-V small SUV leading the way. In addition, Honda says July shipments to the U.S. increase 44% due to record demand.

Are the domestic automakers really hurting due to high gas prices and the housing market slump, or are the Japanese-based competitors selling more cars and trucks to customers based on fuel economy alone? It's hard to say whether gas efficiency or better perceived reliability are reasons here, but based on the particular Japanese models selling like hotcakes, gas prices are at the forefront of many a car purchase decisions these days.

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