Assembly line showing unfinished trucks and SUVs, reflecting shifting US automotive demand.
A notable shift is occurring in the auto market as consumer demand swings back toward larger, gas-powered vehicles, even as electric vehicles (EVs) struggle to maintain their sales momentum.
FOX Business correspondent Jeff Flock reported from the New York Auto Show that automakers are increasingly focusing on SUVs and trucks, reflecting evolving buyer preferences. Recent sales data supports this pivot: midsize SUVs and trucks are experiencing gains, while smaller cars and EVs are losing ground. This trend highlights a growing disparity between industry objectives and actual consumer behavior.
According to Cox Automotive and Kelley Blue Book, sales of midsize SUVs are up 15%, and midsize trucks are up 14%. In contrast, compact car sales have decreased by 8%, and EV sales have dropped by 26% in February compared to the same period last year. The EV market share reached 10.5% of U.S. new-vehicle sales in the third quarter of 2025 but fell to 5.8% in the fourth quarter as incentives waned.
Nissan Americas Chairman Christian Meunier highlighted tariffs as another factor influencing the market. Automakers and suppliers have absorbed billions in additional costs, limiting their ability to pass these expenses on to consumers. Meunier noted that Nissan has been working to reduce this burden while increasing domestic production.
“At the very beginning, we had an exposure of $4 billion. We took it down to $1.5 billion in ’25, and we’re going to get it down to zero. That’s our mission to build as many cars in the U.S. as we can,” Meunier said.
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