Why Ford F-150 Lost Sales Crown to Toyota RAV4Why Ford F-150 Lost Sales Crown to Toyota RAV4

In 2024, the Toyota RAV4 surpassed the Ford F-150 to become America's best-selling vehicle, marking a shift in consumer preferences.

Several market forces contributed to this change, including shifts to more fuel-efficient vehicles, increasing choices of midsize and small trucks, and rising interest in HEVs and PHEVs. Compact SUVs like the RAV4 offer a balance between space, efficiency and urban maneuverability, appealing to a broad spectrum of buyers, some of whom were previously enjoying fullsize trucks as a first or second household vehicle.

Additionally, stubbornly high interest rates in 2024 led consumers to seek more affordable vehicle options. The RAV4, typically priced lower than the F-150, became an attractive choice for cost-conscious buyers who need some utility in their daily driver. Additionally, leasing regained popularity due to lower monthly payments, with leases accounting for 24% of sales.

The RAV4's availability in hybrid models resonated with consumers prioritizing fuel economy. Toyota reported that hybrids and electric vehicles accounted for 43% of its total U.S. sales in 2024, indicating a strong market trend toward alternative fuel vehicles.

The RAV4 experienced a 9% increase in sales, totaling 475,193 units, reports Toyota, while the F-150 saw a 5% decline, with 460,915 units sold, according to Ford. In 2024, Toyota offered various incentives on the RAV4, including special financing rates and lease offers. For instance, qualified buyers could finance a new 2024 RAV4 at 4.99% APR for 60 months. It also offered aggressive lease deals, according to KBB.com, such as $339 per month for 36 months with $3,999 due at signing.

Some of the decline in F-150 sales, though, were self-inflicted. In early 2024, Ford temporarily halted operations at its Kansas City Assembly Plant in Missouri and the Dearborn Truck Plant in Michigan due to supplier-related issues. This led to the temporary layoff of approximately 9,700 union workers. Also, Ford slowed its delivery of F-150s to dealers as it performed additional post-assembly checks on trucks in an attempt to reduce the quality and warranty costs that have been dogging the automaker for several years – a problem that has become a priority for Ford CEO Jim Farley.

Throughout 2024, F-150 production experienced some variability. Notably, production decreased  about 5.4% in June compared to May, reflecting ongoing supply chain challenges, Ford reported.

Ford has a statement regarding the end-of-year sales rank, making a case that it did not lose sales crown. "All Ford F-Series trucks, from F-150 to F-600, share a common cab architecture from the A-pillar to the C-pillar. We offer multiple ICE, EV and hybrid powertrains, frames and exterior style choices depending on trim series and work needs. Other vehicles, like Toyota RAV4 or Porsche 911, also offer multiple powertrains, driveline options, engines, chassis and styling choices for their customers, depending on customer needs and use."

Overall sales of fullsize pickup trucks in the U.S. experienced a modest increase compared with 2023. General Motors led the market, selling a combined total of 875,800 units of the Chevrolet Silverado and GMC Sierra, reflecting a 2.9% rise from 2023, according to GM. Ford's entire F-Series, including heavy-duty pickups, also saw growth, with 765,649 units sold, marking a 2% increase. In contrast, Ram Trucks experienced a significant decline, with sales dropping 16.1% to 373,120 units, Stellantis reports.

The Toyota Tundra, however, saw a substantial gain, with sales increasing 27.4% to 159,528 units. Toyota increased its incentive spending on the Tundra pickup to boost sales last year. The company offered various promotions, including cash rebates and low interest rates for qualified buyers. For instance, customers could receive up to $2,000 in customer cash on new 2024 Tundra models, Toyota reports. Additionally, financing options were available at rates as low as 1.99% APR for up to 72 months.

2025 will be greatly impacted by President Trump’s pending tariffs on goods imported from Mexico and Canada, as well as potentially Japan.

Read: Toyota Rav4--Study of a Perfect Product Plan

Toyota manufactures the RAV4 for the U.S. market in multiple locations, both within North America and internationally. In North America, production occurs at Toyota Motor Mfg. Canada in Ontario and Toyota Motor Mfg. Kentucky in Georgetown, KY. In addition to North American production, some RAV4 models sold in the U.S. are imported from Toyota's facilities in Japan. This includes certain hybrid variants, as noted by owners who have reported their vehicles being manufactured in Japan.

While all F-150 trucks are assembled in the U.S., Ford’s top seller would be impacted by Trump’s tariffs. As of 2024, approximately 32% of the F-150's parts are produced in the U.S. or Canada. This global supply chain means certain components, such as the 3.5L EcoBoost V-6, are manufactured in Mexico. Therefore, while the final assembly of the Ford F-150 is exclusively conducted within the U.S., its parts originate from various locations worldwide.

The impact on pricing of the RAV4 and F-150, as well as every other vehicle sold in the U.S., will be greatly affected by proposed tariffs, which will have a cascading impact on consumer demand. That should shake up the ranking of 2025 sales leaders.

This article was updated with Ford's statement regarding its argument for retaining the sales crown.