In 2023, pickup trucks maintained their position as America’s favorite vehicles. However, a surprising contender almost disrupted this trend. The Toyota RAV4, a compact crossover, came within 10,000 units of Stellantis’ Ram pickup truck, threatening to break the dominance of trucks in the top three U.S. sales podium positions. This would have been the first time since 2014 that a non-pickup claimed such a high ranking.
The RAV4 has made impressive strides, narrowing the gap significantly. In 2020, it undersold the Ram truck by over 133,000 units. However, in 2023, the margin decreased to just 9,983 units. Stellantis sold 444,926 Ram pickups, experiencing a 5% decline from the previous year. Michelle Krebs, an executive analyst at Cox Automotive, attributes the popularity of trucks to their appeal to both individual buyers and fleet purchasers. However, the success of the RAV4 showcases the growing demand for affordable, smaller SUVs, especially with the availability of a hybrid version.
Ford Motor’s F-Series pickups, including the iconic F-150, continued to lead the industry for the 42nd consecutive year with 750,789 units sold. Their longstanding dominance remains unchallenged. General Motors’ Chevrolet Silverado pickup followed closely behind with sales of 543,780 units. The RAV4 secured the fourth spot with a remarkable 434,943 units sold, while the Tesla Model Y claimed fifth place with 394,497 units, according to data and sales estimates from Motor Intelligence (Tesla does not disclose regional sales by vehicle).
The success of the RAV4 is not only significant in itself but also aligns with Toyota’s increased market presence as America’s second-best-selling automaker. While still behind GM, Toyota has consistently outsold Ford every year since 2020. This shifting landscape emerged during the coronavirus pandemic when Toyota overtook Ford in sales. In 2023, it extended its lead over the Detroit automaker by more than 250,000 units. In addition, Toyota achieved another milestone in 2021 by surpassing GM as the country’s top-selling automaker amid supply chain disruptions caused by the pandemic. However, GM has since reclaimed its leading position, outselling Toyota by hundreds of thousands of vehicles in both 2022 and 2023.
Ivan Drury, the director of insights at Edmunds, believes that the success of the RAV4, along with the Honda CR-V (ranking sixth in sales), stems from offering a different value proposition compared to American pickups. With high interest rates and economic uncertainty, these small, economical vehicles provide practical solutions that align with the needs, lifestyles, and budgets of many Americans. Drury emphasizes that practicality becomes paramount when faced with a range of challenges.
Despite a tumultuous period, new vehicle sales in 2023 surprised industry observers by exceeding expectations. The auto market experienced its best year since 2019, with automakers selling 15.6 million vehicles in the U.S., indicating a 12.3% increase from 2022. This remarkable recovery defied the impact of the global pandemic, which disrupted the market significantly in 2020.
December sales were particularly robust, surpassing analyst forecasts. Automakers boosted incentives to stimulate demand, resulting in a 13% increase in sales compared to December 2022. As we enter the new year, automotive analysts and forecasters predict sales of around 15.6 million to 16.1 million vehicles for 2024. General Motors, showcasing optimism, anticipates the industry reaching 16 million units sold in 2024.
America’s love affair with pickup trucks remains strong, but the rise of the Toyota RAV4 challenges the status quo. This compact crossover has steadily closed the gap between itself and the top-selling Ram pickup trucks, offering consumers an alternative that aligns with their evolving preferences for affordable and smaller SUVs. Ford’s F-Series pickups continue to lead the industry, followed closely by General Motors’ Chevrolet Silverado. However, Toyota’s impressive sales performance solidifies its position as the second-best-selling automaker in the U.S., surpassing Ford each year since 2020. The success of the RAV4 and similar models also highlights the increasing demand for practical, economical vehicles amidst economic uncertainty. Despite the challenges posed by the pandemic, new vehicle sales have shown resilience and exceeded expectations, positioning the industry for continued growth in the coming years.