With the soaring prices at the pump, you might think that car shoppers would start looking at more eco-friendly and fuel-saving vehicles. Instead of looking at a massive Sierra at the local GMC dealership, people would be looking at compact cars from Kia or Honda. Sales reports show, however, that with the rising price of fuel, unprecedented inflation, and economic uncertainty, people are still buying more SUVs and pickup trucks than anything else.
Drivers Still Love Bigger Vehicles
When looking at data collected by JATO Dynamics, SUVs and pickup trucks are still selling strong. In the first quarter of 2022, these two types of vehicles hit a new record for market share, just under 73%. That’s 3.32 million vehicles out of a total of 4.56 million units sold between January and April of this year.
SUVs are still the dominant force with 53.5% of the share compared to 19.4% of trucks. SUVs and trucks have been leading the market for the past four years. Sedans continue to see a decline in sales, which is why many manufacturers are moving away from cars altogether. While Ford and Chevy still make their famous sports cars like the Mustang and Camaro, you won’t find a single new sedan on the sales lot of any GMC dealership locations.
The Future of The Market
One might be tempted to think that shoppers still love their large engine vehicles, even if gas prices get out of control. While there is some evidence to support this, the reality is a little more complex. Yes, people are still buying large gas-powered vehicles like the GMC Yukon and Sierra, Chevy Tahoe and Silverado, and Ford Expedition and F-150.
At the same time, some of the rises in SUV and truck purchases are moving into the world of electricity. While auto brands are moving away from sedans and hatchbacks to build more SUVs and trucks, there’s also a movement to bring more hybrid and electric vehicles to market.
Just look at the Tesla Model Y SUV. This single vehicle helped Tesla take up 2.5% more of the SUV market share. Other brands are seeing similar results. Toyota’s RAV4, Hyundai’s Palisade, and Ford’s Maverick are all examples of SUVs/trucks that come with hybrid powertrain options. Each of these vehicles and ones like them is building in popularity.
What’s even more exciting is the promise of what is to come. The fully electric F-150 Lightning is already back ordered, with the first models coming to buyers in the near future. Chevy and RAM have announced the arrival of the Silverado EV and Ram 1500 EV next year. We’re even at the point where you can stop by a GMC dealership and order a newly revived GMC Hummer EV (as a truck or an SUV).
The reality is that shoppers no longer have to decide between having the vehicles they love (SUVs and Trucks) and reducing their fuel costs. The time is approaching when they can get both from a single EV.
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