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Another worrying trend for Toyota could be slipping owner loyalty.

Camry owners who bought another Camry stayed level, at 30 percent,

But with nearly 900,000 more Sonata owners on the road since the outgoing model's debut, and a chance to build a broader, more sustainable following, "We have to be more careful," Zuchowski said.

But Hyundai says the car's suspension and steering have been redesigned for better ride and handling. The interior also is new, with greater use of soft-touch materials and more countermeasures against road noise. Also, high-tech features and advanced safety equipment -- plus a starting price that Zuchowski says won't stray far from the outgoing model's sticker of just over $22,000, with shipping -- will help the Sonata retain the value image that has been a key purchase reason for the sedan, Hyundai says.

With 6.6 million Camrys on the road, Toyota understands well the delicate balance Hyundai is seeking. The Camry's large, loyal following has allowed it -- compelled it -- to stick with safe, modest designs and driving characteristics, generation after generation.

But when the current generation was launched in late 2011, mostly to yawns from auto critics, the sportier SE model became the best- selling trim package. Toyota took the hint.

Every piece of sheet metal except the roof has been changed, as have more than 2,000 part numbers. For some automakers, that constitutes a redesign.

Both products will land in a mid-sized market that has been roiled by intense competition, not only within the segment but also from fast-growing crossovers. At 2.6 million units in 2013, sales in the segment grew just 1 percent from the previous year,

No one feels this more than Toyota, which is fighting to continue the Camry's 12-year streak as America's best-selling car against a strong challenge from the Nissan Altima. Toyota has spent more on Camry incentives, yet had a lower mean transaction price, than its top four competitors -- the Altima, Honda Accord, Ford Fusion and the Sonata -- every month since November 2012, according to TrueCar.

Carter hopes the investment in the new-look Camry will allow Toyota to dial back on incentive spending. "One way to lower incentives is to increase demand, and that's what this car is about," Carter said. But if competitors should raise their incentives, Toyota won't sit still. Said Carter: "This is a competitive market. And we're going to compete."

Subaru will stop building the Camry in Indiana by 2017

Subaru said earlier this year that it would boost the plant's annual capacity to build Subaru vehicles to 300,000 by the end of 2016, up from 170,000 currently. On top of that, the company has capacity to build 100,000 Camrys a year

Subaru also said earlier this year it would add production of the Impreza to the factory, its only plant in North America

The additional capacity Subaru plans to add by 2016 would come from the Toyota line, meaning that Subaru vehicles would be made in mixed production with the Camry on the same line.

Subaru needs more capacity, as it aims for annual U.S. sales of 500,000 by 2016. That's up from an estimated 420,000 units expected this year.

For its seventh generation, Hyundai says the Sonata has “evolved into a more refined premium vehicle” that “provides a luxury feel of a car from the segment above.”

The Sonata became Hyundai’s top-selling car, with sales topping 200,000 units in 2011, 2012 and 2013. But sales have slowed since fresher competing models such as the Honda Accord, Ford Fusion, Nissan Altima and Toyota Camry hit the market, with sales dipping by 12 percent last year and off another 28 percent through the first two months of 2014.

Battery models carry electricity in their lithium-ion battery packs while fuel cell vehicles make electricity on board in a chemical reaction between hydrogen and oxygen, with only water vapor as a byproduct. While hydrogen vehicles have a range comparable to gasoline vehicles and need only a few minutes to refuel -- compared with hours for most battery autos -- there are few hydrogen pumps currently open to the public.

California has said it will provide as much as $200 million over the next decade to help open stations across the most populous U.S. state.

Fuel cell autos will need three to five years to build a market presence in California, and at least a decade to get to U.S. sales of half a million or more annually, Lentz said. Still, advances in the technology and an industrywide push, with Daimler AG, General Motors Co. and Nissan also planning to sell fuel cell models, may help the vehicles get a market foothold faster than hybrids, according to Lentz.