Americans in 2024 are embracing smaller vehicles.
That revelation comes from a report by Axios that shows sales of small cars are on the rise while larger vehicles are seeing a decline.
Compact car sales are up 18% over last year and subcompact crossover utilities have increased over 20%. Those gains have fueled an overall 2% increase in the U.S. in vehicle sales.
However, full-size pickup trucks are down 4% from 2023.
The Axios report reveals that higher vehicle prices and high interest rates on car loans are causing people to downsize their decisions on what automobiles to purchase.
“We have to start to get back in love with smaller vehicles. It's super important for our society and for EV adoption,” Ford CEO Jim Farley told The Guardian. “We are just in love with these monster vehicles, and I love them, too, but it's a major issue with weight. These huge, enormous EVs are never going to make money - the battery is $50,000, even with low-nickel, LFP chemistry. They will never be affordable.”