Sales of Sedans and Smaller SUVs Increase Amid Higher Prices

By the Editorial Team · Friday, October 2, 2026

Sales of small sedans and compact SUVs from manufacturers like General Motors, Hyundai, and Toyota rose in the U.S. during the third quarter of 2026, while demand for larger SUVs and three-row models declined. This shift reflects consumer responses to higher vehicle prices and fuel costs, benefiting more affordable models priced under $25,000 and prompting automakers to adjust their product strategies accordingly.

Sales of smaller sedans and compact SUVs are gaining traction in the U.S. auto market as consumers respond to rising vehicle prices, industry data for the third quarter of 2026 show.

General Motors reported notable increases in sales of its small SUVs, including the Chevrolet Trax and Trailblazer. Similarly, Hyundai saw an 18% surge in sales of its Elantra sedan, while Toyota's compact Corolla also posted significant gains throughout the year. All these models carry starting prices below $25,000, making them more accessible amid shifting consumer preferences.

In contrast, larger SUVs and three-row models faced declining demand. GM experienced sales decreases in its Chevrolet Suburban and Tahoe SUVs, and Hyundai’s Palisade SUV sales slipped by 1% during the quarter. Jeep’s Grand Cherokee saw a sharper decline of 30%. Randy Parker, CEO of Hyundai Motor America, attributed the increased interest in passenger cars to the company maintaining its presence in the sedan segment despite industry-wide shifts away from smaller vehicles.

Overall U.S. vehicle sales are projected to fall slightly in the third quarter compared with the same period last year, according to data from automotive research firm Edmunds. Industry analysts have generally anticipated that 2026 sales will remain flat or decline compared to 2025, driven largely by higher sticker prices and persistent elevated fuel costs influencing consumer choices.

Detroit’s three major automakers—General Motors, Ford Motor, and Stellantis—reported a combined decline in vehicle sales for the quarter. Both GM and Ford have concentrated their strategies on more profitable pickups and large SUVs as they have scaled back sedan production. GM recently raised its full-year profit forecast and indicated that demand for diesel-powered Chevrolet Silverado and GMC Sierra pickups remains robust despite record-high diesel fuel prices. Duncan Aldred, GM’s North American chief, stated at a Detroit industry event that maintaining a balanced product mix is critical and that the company does not intend to adjust solely based on current gas price levels.

Although GM’s overall sales dropped 5.5% in the third quarter from a year earlier, it continued to hold onto its status as the top-selling automaker in the U.S. by volume, though Toyota is closing the gap. A GM spokesperson noted that sales of its full-size pickups increased during the quarter even as the company prepares to introduce substantially redesigned 2027 model-year trucks.

Meanwhile, foreign automakers have benefitted from rising demand for more affordable options. Honda posted an 18% increase in passenger car sales during the quarter, marking its strongest performance in that segment since 2020. The company attributed the growth partly to buyers shifting from small SUVs to sedans such as the Accord. However, supply constraints have limited availability of the Civic sedan, contributing to its strong sales performance.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.