DETROIT — In the automotive world, size does indeed matter, and major automakers like Ford, General Motors, and Toyota are keenly aware of this, especially when it comes to midsize pickup trucks. These vehicles strike a sweet spot: substantial enough to command attractive price tags yet strategically sized to ensure healthy profit margins. What was once considered the realm of basic, entry-level work vehicles, Midsize Trucks have transformed into sophisticated, high-performing, and notably profitable models, with top-tier configurations reaching prices exceeding $60,000—rivaling luxury vehicles from brands like BMW and Cadillac.
“This segment is no longer just for budget-conscious buyers, a perception that lingered for quite some time,” notes Jessica Caldwell, insights executive director at Edmunds, an automotive research firm. “Today’s midsize trucks are significantly more refined, boasting enhanced amenities, advanced features, and a strong emphasis on appealing design.”
Mirroring the evolution of their full-size counterparts such as the Ford F-150, Chevrolet Silverado, and Toyota Tundra, midsize pickup trucks have grown in capability, dimensions, and price. This evolution is marked by a surge in luxury trims, specialized off-road versions, and innovative features designed to attract a broader customer base.
Since 2019, sales in the midsize segment have consistently surpassed 600,000 units annually, reflecting a broader shift in consumer preference away from traditional sedans towards versatile utility vehicles like crossovers, SUVs, and, prominently, pickup trucks.
Over the last decade, traditional midsize pickup truck sales have more than doubled, now representing 4.4% of all U.S. vehicle sales in the past year. This is a significant jump from just 1.6% in 2013 and marks the highest market share for the segment since 2005, according to Edmunds data. S&P Global Mobility forecasts continued growth for midsize pickups, projecting they will peak at 4.6% of the U.S. market share by 2026.
The average transaction price for midsize trucks has also seen a significant climb. Over the past decade, it has surged by 53%, escalating from approximately $28,100 to over $42,000, as reported by Edmunds. This price increase outpaces the overall automotive industry’s growth by 3 percentage points, indicating strong consumer willingness to invest in this segment.
Intensifying Competition in the Midsize Truck Arena
The midsize pickup segment has dramatically expanded, from just three models a decade ago to now featuring seven gas-powered options from major manufacturers including Chevrolet, Ford, GMC, Honda, Jeep, Nissan, and Toyota. Notably, half of these brands have introduced redesigned models this year, a move anticipated to further ignite consumer interest and competition within the segment.
Toyota recently unveiled its fourth-generation Tacoma pickup, shortly after Ford Motor revealed its redesigned Ranger for the U.S. market. General Motors has also entered the fray with updated versions of the Chevrolet Colorado and GMC Canyon pickups now arriving at dealerships.
“The midsize truck segment is experiencing unprecedented heat right now,” commented Patrick Finnegan, senior manager of GMC trucks and full-size SUVs, in a statement to CNBC. “There’s a significant increase in effort, energy, and enthusiasm, with momentum building in this segment like never before.”
While Detroit automakers traditionally dominate the full-size pickup market, Toyota Motor stands as the undisputed leader in midsize truck sales with its Tacoma model. Toyota has maintained approximately a 40% market share in the American midsize pickup segment since 2019, even with the re-entry of Ford and Jeep into the market, according to Edmunds data. This is a decrease from a more than 60% share a decade prior—despite Tacoma sales surging roughly 150% in the same period—as competitors have launched compelling new trucks.
Toyota is determined to maintain its leading position. “Tacoma is the top-selling vehicle in its segment, and we are fully committed to ensuring it remains so,” affirmed Joseph Moses, Toyota North America general manager of trucks and SUVs.
Following Toyota, GM holds the second-largest share of the U.S. midsize pickup segment, with approximately 19% last year, as reported by Edmunds. Stellantis’ Jeep Gladiator captured 12.8%, and the Nissan Frontier accounted for 12.5%. Ford’s Ranger held a 9.4% share, down from about 15% the previous year.
“There’s no indication that Toyota’s dominance in this segment is waning,” observes Stephanie Brinley, principal automotive analyst at S&P Global. “Although their market share has decreased since 2017, they still sell well over 200,000 units annually. No other competitor even comes close.”
Divergent Strategies in the Midsize Market
Automakers are employing varied strategies to capture their share of the burgeoning midsize pickup truck market, reflecting different brand philosophies and target customer profiles.
Toyota emphasizes providing “a Tacoma for everyone,” offering a wide array of configurations including a two-door variant, multiple bed lengths, and the new, high-spec off-road “Trailhunter” model. Toyota also distinguishes itself by offering a manual transmission option for the Tacoma—a rarity in today’s automotive landscape, appealing to purists and off-road enthusiasts.
Conversely, competitors have streamlined their offerings, typically limiting cab and bed configurations, often focusing exclusively on four-door midsize pickups with a single bed option to simplify production and cater to broader market demands.
This variance in optionality often stems from profit considerations. Ford CEO Jim Farley recently highlighted to investors that specialized variants, such as the high-performance Raptor model within the Ford Ranger lineup, share approximately 80% of their components with standard models but yield a 30% higher contribution margin.
The Ranger Raptor, positioned at the high end of the lineup, starts at $56,960. This price point is nearly $23,000 higher than the entry-level Ranger model, illustrating the profitability potential of performance and luxury trims in the midsize segment.
“The Raptor is designed to be the pinnacle of our Ranger offerings,” explained Gretchen Sauer, Ford’s marketing manager for pickups. “It’s strategically positioned to elevate the overall transaction price for the Ranger, enhancing profitability and brand perception.”
GM, on the other hand, differentiates its approach by positioning Chevrolet as its mainstream brand within the midsize pickup segment, while GMC specializes in premium, higher-end models. GMC’s Finnegan anticipates attracting new customers with the redesigned Canyon, particularly at the higher end of the market with models like the off-road AT4 and AT4X, which can both exceed $60,000.
“Expanding our presence and market share in the midsize segment is a key priority for us,” Finnegan stated. “With the influx of new entries and renewed focus on this class, we are confident that the midsize truck segment will continue to expand and evolve, offering diverse options for consumers and significant opportunities for manufacturers.”
