Toyota redesigns best-selling Tacoma pickup amid growing competition

Toyota Motor is banking on the fourth generation of its Tacoma truck, including the new “Trailhunter” model, to help maintain its lead in the growing midsize pickup market in the United States.

The Tacoma has led the midsize pickup segment in sales for nearly 20 years, as competitors such as Ford, Jeep, and Chevrolet have come and returned to the segment. Midsize pickup trucks accounted for 4.4% of all US vehicle sales in 2022, according to automotive research firm Edmunds.

“[Tacoma] is the No. 1 selling vehicle in the segment…we aim to stay that way,” Joseph Moses, Toyota North America’s general manager for trucks and SUVs, told CNBC. model.”

Toyota has controlled nearly 40% of the American midsize pickup truck segment since 2019 when Ford Motor and Jeep returned to the market, according to Edmunds. That’s down from more than 60% market share a decade ago—though Tacoma sales have jumped nearly 150% since then—as rival automakers released new trucks.

Trailing Toyota is General Motors, which sells the Chevy Colorado and GMC Canyon. Edmunds reports that the Detroit automaker’s share of the midsize pickup segment in the US last year was about 19%, followed by Stellantis’ Jeep Gladiator at 12.8% and Nissan’s Frontier at 12.5%.

The 2024 Tacoma, revealed by Toyota early Friday, features new exterior and interior designs as well as enhanced safety, comfort and performance technologies. It will offer two engine options for the 2.4-liter turbocharged four-cylinder, including an “i-FORCE MAX” hybrid model that makes 326 horsepower and 465 pound-feet of torque.

The reveal of the Tacoma comes after Ford introduced its new Ranger to the US market and General Motors released the next-generation Colorado and Canyon models. All of these trucks feature off-road or high-performance models.

The new Tacoma “Trailhunter” model is a rugged-looking truck aimed at off-road enthusiasts – a combination of off-road and campers that can use a bed or the top of a car for sleeping. The Japanese automaker has partnered with Australian company ARB to outfit the car.

Automakers are expanding their off-road vehicle offerings as a way to increase profits on their trucks and SUVs with a much lower investment than on new cars. Toyota also offers “TRD” models that include off-road capabilities or aesthetics.

Unlike many of its competitors, Toyota will continue to produce a two-door version of the Tacoma and offer two bed variants. Most competitors have switched to offering four-door midsize pickups with a single-bed option to reduce complexity. Toyota also offers the truck with a manual transmission—a rarity in today’s auto industry.

The Tacoma is available in SR, SR5, TRD PreRunner, TRD Sport, TRD Off Road, Limited, TRD Pro and Trailhunter trim levels. It’s part of the automaker’s “Tacoma for Everyone” strategy, Musa said.

“Because we sell so much, we’ve really tried to have this broad and diverse mix — on the lower end for those who just need a truck to go to the higher end for those who really want to do some fun stuff with them,” Moses said.

Pricing for the 2024 Tacoma will be announced closer to the car arriving in US dealerships later this year. Current starting prices range from about $28,250 to roughly $48,000, depending on the model. According to Moses, the average transaction price for the Tacoma is about $41,000.