America’s biggest automakers have all but abandoned sedans and coupes in recent years in a rush to compete in the pickup truck and SUV markets.
Many domestic buyers also shifted to these larger vehicles. Still, the car market exists, with Japanese, Korean and German brands selling hundreds of thousands of small cars a year in the United States.
The resilience of the sedan market and concerns that high prices are driving customers away are causing some U.S. automakers to reconsider their lineups.
With the average price of a car hovering around $50,000, industry experts said compact sedans starting at about $22,000 are an attractive entry point for buyers.
“Everything is affordable,” said Orth Hedrick, vice president of product planning for Kia America. Kia Motors’ compact sedan, the K4, and its predecessor, the Kia Forte, were the brand’s second-best-selling vehicle last year, with 140,514 units sold. “It’s been a phenomenal run for us. We’ve far exceeded our plans, and many of them are affordable.”
Similarly, the RAV4 crossover SUV is Toyota’s best-seller, reaching sales of 479,288 units in 2025. Toyota also sold 316,000 Camrys and nearly 250,000 Corollas last year, accounting for 65% and 51% of SUV sales, respectively.
“Sedans have the opportunity to provide an alternative to a large number of SUVs, and they are typically less expensive than SUVs in the same size class,” said Stephanie Brinley, associate director of auto intelligence at S&P Global Mobility. “Sedans certainly offer more opportunities for attractive design and are generally more fuel efficient than utility vehicles.”
Industry observers, dealers and automaker executives have publicly voiced concerns that rising vehicle prices and rising fuel costs could deter buyers or increase interest in used cars.
In fact, Volkswagen said it has kept the Jetta sedan in its lineup for 45 years as an affordable entry point in the United States. The brand unveiled a new and refreshed version of its Atlas full-size SUV at the New York International Auto Show in early April. But the Jetta compact car and two high-trim versions of the Golf hatchback were also on display at the show.
“The Jetta is one of our most important nameplates,” said Petar Danilovic, Volkswagen’s senior vice president of North American product marketing. “Every car has a different role in the portfolio. And of course the Jetta, for example, but also attracting the entry customer is important. So, hopefully, we can grow the customer within the brand from the Jetta to the Tiguan to the Atlas. So this is the logic behind it as well.”
“Affordable options are essential to attract new and younger buyers to our brands,” said Rebecca Lindland, managing director of Allison Worldwide. “Many Gen Z and younger Millennials are unable or unwilling to extend their payments for a typical SUV or crossover.”
SUVs have been growing in popularity for decades, and while their popularity soared in the 2010s, sales of small cars declined. In 2015, sedans accounted for about 40% of the market, according to Edmunds. According to the car site, that percentage was only 15% in 2026.
SUVs offered many buyers a change from the cars they were used to. Now, that rarity may be having the same effect on sedans.
“A lot of it is this new generation that grew up in the backseat of SUVs,” Hedrick said. “They don’t want to drive an SUV. They like something different. So for them, sedans are new. For those of us who have always grown up with sedans, it’s old. But for new buyers, they like the look. They like the idea of doing something different.”
american car manufacturer
Despite the withdrawal, the American automaker still produces a small number of sedans and coupes.
general motors Luxury brand Cadillac will end production of the CT4 sedan in 2026. The larger CT5 will be temporarily withdrawn from the market, but will be back, the company confirmed in an email.
GM also makes a luxury Corvette sports coupe.
Automotive News reports, citing anonymous sources, that GM plans to build Buick sedans at a plant in Michigan. GM spokesman Kevin Kelly told CNBC in an email that the company does not comment on product plans.
“I don’t think sedans will ever regain their 10-year heyday, but returning to this segment could be a good move for GM and others considering the opportunity,” Brinley said.
Ford’s only traditional silhouette is the Ford Mustang. Many insiders, including CEO Jim Farley, refer to the Ford Mustang as the “soul of the company.” Still, the F-150 pickup truck is the company’s biggest seller, and the Mustang outsells most of Ford’s SUVs. Still, Edmunds says it’s the best-selling coupe in the U.S. as of April 2026.
Farley said at the Detroit Auto Show that the company would “never” bring back a more traditional passenger car.
StellantisDodge currently manufactures the Charger sedan in two-door and four-door configurations.
The American automaker’s best-selling sedan is tesla Model 3, according to Edmunds. Now that the full-size Model S has been discontinued, it is the only sedan Tesla makes.
electric car manufacturers lucid motors The company also manufactures the luxury sedan Lucid Air, and is planning a mid-sized SUV for its next product.
Some say they are not giving up on the field.
“It’s clear that the industry is moving away from passenger cars and toward SUVs and light trucks,” said Dave Christ, group vice president and general manager of Toyota Motor North America. “But we still believe in passenger cars, so we will continue to invest in them. Even if 20% of the industry is passenger cars, that would be over 3 million cars a year.”
