Skip to content

TrueCar: Toyota Tacoma reigns as compact pickup king

Tacoma transaction price increases even as current model’s lifecycle ends TrueCar, Inc., the negotiation-free car buying and selling platform, finds Toyota’s Tacoma still dominates small pickup sales with the largest market share for the last ten years in a row as the current truck concludes its run and the company prepares to show a restyled version … Continued

Tacoma transaction price increases even as current model’s lifecycle ends

TrueCar, Inc., the negotiation-free car buying and selling platform, finds Toyota’s Tacoma still dominates small pickup sales with the largest market share for the last ten years in a row as the current truck concludes its run and the company prepares to show a restyled version in Detroit next month.

Tacoma is outselling its closest competitor, the Nissan Frontier, by a 2:1 margin this year, and in the final phase of its model life commands a higher average transaction price at $29,293, up 2.6 percent over last year. Incentive spending on Tacoma is remarkably low, averaging only about $100 this year – one-seventh the amount for competing trucks. Tacoma’s transaction pricing power also makes it the segment’s revenue leader, on pace to generate more than $4.5 billion.

“It is simply incredible how this one truck dominates with 66 percent market share and leading revenue,” said John Krafcik, president of TrueCar. “This segment is often overlooked, but we’re projecting it to grow 18 percent in the next two years with GM’s stepped up efforts, a new Tacoma for the 2016 model year andHonda’s all-new Ridgeline.”

Toyota’s leadership in the segment is particularly noteworthy as the popularity of small pickups is poised for a boost driven by General Motors’ aim at increased market share.  The newly revamped Colorado and Canyon trucks have both launched successfully with average transaction prices well above Tacoma.

While the cost of fuel is currently low, historic volatility suggests prices may eventually increase again. The compact pickup truck segment will remain appealing to consumers looking for utility, practicality and fuel economy.

The Tacoma success story is even more interesting in context with Toyota’s overall pickup strategy as its two-pronged truck approach has proved fruitful for the automaker.

For 2014, TrueCar forecasts Toyota’s combined pickup sales to fall fourth behind Fiat Chrysler’s Ram and ahead of GM’s GMC pickups. Even with Tacoma sales down about 4 percent, Toyota total pickup sales have eked out a tiny increase versus last year, but experienced a 3 percent increase in revenue. With the ability to flex production between the two pickup models, Toyota is meeting increased demand for full-size pickups from consumers and has reaped the revenue rewards.

“Toyota has a very balanced approach to its complete portfolio,” Krafcik said. “This is definitely the case with its one-two punch for pickups. Instead of abandoning the compact truck segment like other automakers, Toyota remained steadfast in its presence while strengthening the awareness and opinion of the Tacoma brand.”

Welcome back , to continue browsing the site, please click here