Toyota Sales Dropped As Consumers Prefer Crossovers and Sports Utility Vehicles Over Light Vehicles

May 03, 2017 11:55 PM EDT | Hannah Jill


Auto brands reported a dip in its sales for the month of April and it looks like the demand for smaller vehicles is dropping after a stable run of 7 years. Luckily, the Japanese Brand Toyota only had a 2 percent sales drop compared to other auto brands.


The downswing in Toyota's sales performance is the effect of consumers' choices. Most of them prefer crossovers and sports utility vehicles than compact cars. Also, the decrease in sales of its hybrid model Prius and full car category Avalon trim contributed to the decline.

Buyers cannot be blamed for their decisions since gasoline prices have been lowered. Even the fuel economy of these cars was enhanced, giving buyers a chance to have a change of heart. 

It is not surprising that even the leading producers of quality cars were affected as well. Toyota's reported sales were better than American auto brands like Ford and General Motors which had a staggering decline in its sales. Ford's sales dropped at 7.2 percent while General Motors is down by 5.8 percent. That figure is a bit higher than what it had last year. Although Ford and General Motors' SUVs' sales were increasing, unfortunately, the sales of its pickup trucks went downhill and couldn't be offset.

The market sales last month is the result of the 4th consecutive month that the US figures had completely dropped. Likewise, this has been the longest losing streak of the car industry since 2009. Analysts were actually baffled by the turn of events. The sales slump has continued despite the nations' growing economy, wage and purchaser's buying power were increased.

American's decrease spending on cars and related products made a negative impact on last quarter's economic growth projection. However, Toyota is still confident that the sales will be better n the coming months. Hopefully, the measures being done by the affected auto brands will prosper soon.

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