A recent study from S&P Global drops some surprising tidbits about Toyota’s full-size truck – especially in light of some of the hullaballoo about a recent recall and dealers turning down trade ins. But, at least as of April 2024, Toyota Tundra market share has increased to its highest levels – and it’s commanding top dollar.
So, let’s take a closer look at the study.
Toyota Tundra market share
The Toyota Tundra has always sold just a fraction of the number of trucks in comparison to the Detroit Three. Looking at Q2 sales, for example, you see Tundra sold about 42k trucks. Ford Motor Co. sold 199k F-Series trucks, and Chevrolet sold 146k Silverados. You don’t need Jill Math to tell you that’s a big difference.
Toyota Tundra market share fluctuated between 5% and 10% from 2014 to 2021. But starting in 2022, with the next-gen truck, we started to see that market share steadily tick up – and while it still isn’t coming close to Ford F-150 or Chevy Silverado 1500, it has passed Ram 1500 and is within spitting distance of the GMC Sierra 1500.
In April 2024, it hit 15.3% market share.
What is contributing to this increase? Well, you have Toyota’s reputation for reliability paired with new features like a hybrid powertrain, high-tech infotainment screen paired with a large touch screen and a top-tier lux-level Capstone trim. Another contributing factor is the Toyota investment in the San Antonio plant that builds the Tundra and the fact that the plant can now build more Tundras with the Tacoma production having moved to Mexico.
Oh, and for what it’s worth, per the Cars.com American-Made Index, Tundra is “more American” than the Silverado, F-150, Sierra and Ram 1500.
People are willing to pay $$$
What we found really interesting, however, is the price premium the Toyota Tundra commands. As the S&P Global study points out, the average loan payment for this Toyota truck is $1,014. That exceeds Silverado 1500 and F-150 payments by 23% and 21% respectively.
And if this doesn’t blow your mind, nothing will: People are currently paying more for a Tundra than they are for the up-market Sierra 1500.
Why this matters
Though the full-size truck segment is the fourth-largest, this segment is the most profitable. So, the more market share you get, the more money you make. Combine that with the fact that truck buyers tend to be the most brand loyal, and this study reveals some interesting things.
Even though the Detroit Three still dominate in truck sales, it’s fascinating how Toyota has been able to start chipping away at market share as well as charge more for their full-size truck.
The bottom line
It’s TBD whether some of the current reliability problems and known issues will chip away at the Toyota Tundra market share. But it has had a solid upward trajectory since the iteration of the new generation. So, we wouldn’t bet against it.
