Sales of pickup trucks and SUVs may have reached their peak in the US due to affordability concerns. Many Americans can no longer afford these vehicles, forcing automakers to re-evaluate their profit margins. The big picture is that large, expensive trucks and SUVs generate significant revenue for companies like General Motors, Ford, and Stellantis.
However, with a recent market outlook report predicting “Peak Truck,” the industry may see a shift back to more affordable sedans. This trend could squeeze profits and hit US automakers hard. The US car market has been largely abandoned in favor of trucks and SUVs, but now consumers are starting to look for more affordable options.
A recent survey showed that fewer people believe their next vehicle will be a truck or SUV, while those intending to buy a car have increased. Inflation and high interest rates have also contributed to the mounting evidence that car buyers are feeling pinched. When housing is slow, tradespeople don’t replace their vehicles as quickly, further supporting this trend.
While Americans still love trucks and SUVs, sales data indicates some buyers are trading down to smaller models. Cheaper mid-size trucks like the Ford Ranger and Maverick are in high demand, as well as compact and subcompact SUVs like the Toyota RAV4 and Chevrolet Trax. The average price of a new truck is $59,684, while SUVs sell for an average of $47,667.
Monthly payments, maintenance costs, insurance, and gasoline expenses also add up quickly. Manufacturers are adopting a wait-and-see attitude due to uncertainty over higher tariffs and policy flip-flops on electric vehicles under the Trump administration. The auto industry forecasts a solid year, but strategic planning is difficult due to these factors.
Source: https://www.axios.com/2025/02/15/truck-rising-prices-suv-sedan