Toyota Gaining Ground in Quest for More Light Truck Sales

Steph Willems
by Steph Willems
toyota gaining ground in quest for more light truck sales

January was a boffo sales month for Toyota in the United States, with the automaker posting a 16.8 percent year-over-year increase across both the Toyota and Lexus brands. Toyota brand sales rose 17 percent, to the luxury division’s 15 percent.

Don’t expect that kind of growth to continue, says Jack Hollis, Toyota North America’s general manager, as the industry still expects a slump in 2018. More important to Toyota than last month’s sales, however, is the type of vehicles Toyota buyers actually took home. In this case, brand loyalists added crossovers, SUVs, and trucks to their driveway in greater numbers than ever before.

The record set for Toyota light truck sales in the U.S. last month was exactly what the company was hoping for. Still, keeping that truck-buying momentum going is now job one.

Toyota came closer than ever to fixing a persistent product problem last month. As more and more buyers gravitate towards SUVs and trucks, Toyota soon found itself lagging behind the industry average in terms of its cars-to-trucks ratio. Cars — a rapidly shrinking segment — made up too much of Toyota’s sales. Hardly a good way to face the future.

But there’s progress being made on this front. Speaking to Automotive News, Hollis said that over the last four months, American buyers chose light trucks over passenger cars by a ratio of 64:36. Toyota ended 2017 with a sales mix of 58:42. A year earlier, just 53 percent of the company’s U.S. sales were light trucks. In January, however, Toyota cleared the 60 percent bar for the first time, pushing it closer to the industry average (where, presumably, safety lies).

“As we see that, we are gaining more of what the industry is selling,” Hollis said, giving some of the credit for last month’s sales surge to the growing popularity of certain models.

While Toyota brand cars saw a year-over-year sales uptick of 5.7 percent in January, demand for Lexus cars fell by 2.3 percent. Toyota pickup sales rose 27.3 percent, year over year, with growth in Tacoma sales amounting to 33.6 percent. The same trend carried over in Toyota’s SUV division, where sales climbed 26.7 percent compared to the previous January. Only old, low-volume models (Sequoia, Land Cruiser) saw any decrease in sales.

At Lexus, sales of the NX, LX, GX, and RX lines rose a combined 23.6 percent. As we’ve seen recently, Toyota’s pulling out all the stops to make its light truck lineup more appealing to buyers. Besides adding the subcompact C-HR crossover to the stable, the automaker introduced a longer, three-row RX and cheaper, two-row LX, with an improved line of TRD Pro off-road models also on the way. Later this year, we’ll see the redesigned RAV4 — a model already in possession of the “best-selling crossover” title.

Despite earlier efforts to squeeze more Tacomas out of its Texas and Mexico assembly plants, Toyota plans to feed the demand with additional production in the near future.

Actually, it’s likely Toyota would already have reached the industry’s 64:36 truck-to-car ratio, were it not for two names: Camry and Corolla. Those two cars, backed up by decades of name recognition and a solid reputation, continue selling well. Suffice it to say, there’s far worse situations an automaker could find itself in.

[Images: Toyota]

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  • Ernest Ernest on Feb 11, 2018

    So Toyota's upping their game in the light truck segments, while increasing passenger car sales in the face of declining sales in that segment. Shocker. The only segments Toyota hasn't mastered are the full-size Pickup and SUV segments. They have entries, but the domestic brands still own these segments. I don't see that situation changing anytime soon.

    • See 1 previous
    • Scoutdude Scoutdude on Feb 12, 2018

      @NormSV650 The Tundra is in the basement with the Titan and it is largely irrelevant which one it actually at the bottom.

  • Zackman Zackman on Feb 11, 2018

    GM, Ford & FCA had better watch their backs, as Toyota is sneaking up with their trucks. Some love them, others won't go near them, but whoever proves their product reliability is best, they may win in the long run. Me? I still prefer GM, but not like I used to. Being retired, I've bought my last new car, and whatever I replace my 2012 Impala with is anybody's guess. Many preach the gospel of Toyota, but their products simply don't "speak" to me. Who knows? Time will tell.

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    • Rentonben Rentonben on Feb 12, 2018

      I hate Toyota: They're the McDonald's, Walmart, IKEA of the auto world. That said, I'm closer to buying a Toyota now that I ever was, ugliness and all. I still won't buy one... but they're approaching the edge of my radar for two reasons: Putting advanced safety features on most of their cars, and for how they deal with product recalls - for example replacing the frames of their tin-pot trucks was a step in the right direction.

  • Jeff S Still a nice car and I remember these very well especially in this shade of green. The headlights were vacuum controlled. I always liked the 67 thru 72 LTDs after that I found them bloated. Had a friend in college with a 2 door 71 LTD which I drove a couple of times it was a nice car.
  • John H Last week after 83 days, dealership said mine needs new engine now. They found metal in oil. Potential 8 to 9 month wait.
  • Dukeisduke An aunt and uncle of mine traded their '70 T-Bird (Beakbird) for a brand-new dark metallic green '75 LTD two-door, fully loaded. My uncle hated seat belts, so the first time I saw the car (it was so new that the '75 models had just landed at the dealerships) he proudly showed me how he'd pulled the front seat belts all the way out of their retractors, and cut the webbing with a razor blade(!).Just a year later, they traded it in for a new '76 Cadillac Coupe de Ville (they had owned a couple of Imperials in the '60s), and I imagine the Cadillac dealer took a chunk out to the trade-in, to get the front seat belts replaced.
  • CaddyDaddy Lease fodder that in 6 years will be on the 3rd owner in a poverty bound aspirational individual's backyard in a sub par neighborhood sinking into the dirt. The lending bank will not even want to repossess and take possession of this boat anchor of a toxic waste dump. This proves that EVs are not even close to being ready for prime time (let's not even talk about electrical infrastructure). EVs only exist in wildly expensive virtue signaling status-mobiles. FAIL! I know this is a Hybrid, but it's a Merc., so it will quickly die after the warranty. Show me a practical EV for the masses and I'll listen. At this time, Hybrids are about the way to go for most needing basic transportation.
  • Jeanbaptiste The bubble free dash on the R32!
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