April 2 (Bloomberg) -- Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co., Asia's three largest automakers, posted U.S. sales declines in March as tightening credit and record gasoline prices damped demand.

Toyota tumbled 10.3 percent, the fourth monthly drop in a row, while Honda slipped 3.2 percent and Nissan fell 3.8 percent, the companies said in separate statements yesterday.

The Asian automakers staved off a steeper slide because they focus on cars, not the pickups, minivans and sport-utility vehicles that account for a majority of U.S. rivals' sales. Even greater declines at U.S. automakers boosted the market share of Japanese and South Korean companies by 2.6 points to 44.5 percent, based on Bloomberg data.

``The only upside are categories that showed obvious life: small and some midsize cars,'' Jesse Toprak, director of market forecasting for Edmunds.com in Santa Monica, California, said in an interview. ``The market favors brands perceived as safer, more fuel efficient. That should benefit Honda and Nissan.''

The Asian brands' fall reflected the shrinkage in the auto market in a month when U.S. retail gasoline averaged $3.24 a gallon, the most ever, and consumer sentiment sank to the lowest in 16 years. Toyota may pare its full-year U.S. sales target.

``A recovery in the second half of the year may not be as robust as we had forecast,'' Bob Carter, U.S. general manager of the Toyota brand, said yesterday on a conference call.

Among U.S.-based automakers, General Motors Corp.'s sales fell 19 percent, Ford Motor Co.'s slid 14 percent and Chrysler LLC's decreased 19 percent. The industry's annualized sales rate for March fell to 15.1 million cars and light trucks from 16.3 million a year earlier. That's the lowest since October 2005.

Toyota

Sales climbed for Yaris subcompacts, Prius hybrids and Tundra pickups, making those models among the few bright spots for Toyota City, Japan-based Toyota. Sales totaled 217,730 vehicles.

Japan's biggest automaker, second worldwide only to GM, has said it expects to raise U.S. sales at least 1 percent this year. Toprak predicts Toyota is likely to post its first annual decline in the market in more than a decade. Carter said the company will review its U.S. forecast.

Still, Toyota's market share improved to 16.1 percent from 15.7 percent a year earlier, making it the third-largest in the U.S., behind GM and Ford this year, based on Bloomberg data.

Bloomberg and some automakers use sales comparisons that aren't adjusted for the number of selling days in each month, while some companies report adjusted figures.

Toyota gained 4.4 percent to 5,240 yen at the 3 p.m. close on the Tokyo Stock Exchange as a weaker yen helped boost exporters. Honda rose 7.4 percent to 3,110 yen and Nissan jumped 7.1 percent to 878 yen.

Honda, Nissan

Honda sold 138,734 vehicles last month. Sales grew for the Tokyo-based company's Fit and Civic small cars, while a drop of 22 percent for its premium Acura brand of cars and light trucks helped drag down the overall results.

Honda's market share was 10.2 percent in March, up 0.9 point from a year earlier. It ranks No. 5 in the U.S.

U.S. sales totaled 106,921 vehicles, Nissan said. Declines for most of the Tokyo-based company's light trucks erased gains from record sales of Altima sedans and Versa subcompacts.

``Market demand is more sedan-weighted, more to small cars,'' Al Castignetti, Nissan North America vice president, said in an interview. ``Higher fuel prices, from the standpoint of disposable income, makes people rethink their vehicle choice and consider more efficient types.''

Nissan's market share improved to 7.9 percent from 7.2 percent last year, good enough for sixth place.

Hyundai, Kia

Hyundai Motor Co., South Korea's largest automaker, reported a 1.9 percent increase for the month to 42,796, the sole gain among Asian brands. Sales of Sonata sedans and Elantra small cars rose.

The Seoul-based company's market share climbed to 3.2 percent last month, up from 2.7 percent. Kia Motors Corp. sold 24,871 vehicles last month, down 9.8 percent. Market share for Kia, controlled by Hyundai, was unchanged at 1.8 percent.

Mazda Motor Corp. sold 32,929 vehicles, down 12.8 percent. Its U.S. market share was unchanged at 2.4 percent.

Among smaller brands, Japan's Mitsubishi Motors Corp. reported a 14.2 percent decline; Suzuki Motor Corp.'s U.S. unit sold 4.7 percent fewer vehicles; and Subaru, the auto brand of Japan's Fuji Heavy Industries Ltd., fell 7.4 percent.

Japanese truckmaker Isuzu Motors Ltd. sold 683 pickups and SUVs, down 8.1 percent.

To contact the reporters on this story: Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net; Greg Bensinger in New York at gbensinger1@bloomberg.net

Last Updated: April 2, 2008 03:42 EDT