Vehicle trends point to focus on value

A new report covering the first half of 2024 shows that value-focused car brands like Toyota, Kia and Hyundai gained traction as consumers leaned toward practicality amid steady inflation and increased manufacturer incentives.

From January through June 2024, car buyers showed a clear preference for affordable, reliable vehicles as economic conditions pushed many to prioritize value. According to U.S. News & World Report’s latest automotive insights, the combination of stable inflation and expanded inventories prompted manufacturers to offer more incentives and discounts, further driving interest in budget-friendly brands.

The findings echo recent data from DesRosiers Automotive Consultants showing a pullback in the luxury segment in Canada, suggesting financial pressures are changing Canadians’ buying preferences when car shopping.

The report also looked into consumer behaviour toward new and used vehicles, revealing a shift towards newer models, with 34 per cent of shoppers considering new cars over used.

“Steady inflation led consumers to adopt a pragmatic approach to car buying in early 2024. Many prioritized needs over wants, opting for affordable, reliable models from brands like Toyota,” the report noted.

It also highlighted growing interest in Kia and Hyundai, whose diverse lineup of gas, hybrid and electric vehicles has appealed to cost-conscious buyers seeking a mix of economy and innovation.

Similar to the DesRosiers findings, this report noted light trucks are in demand, specifically mid-size SUVs. This reflects an ongoing shift away from sedans and small cars as automakers pivot production to larger, versatile vehicles. Consumers particularly gravitated toward mid-size crossovers, as these models align with family needs and offer greater cargo capacity.

Interest in new vehicles surged, with recent models from the last four years being the preferred choice for those shopping used.

When it comes to hybrid and EV interest, Consumer engagement with these vehicles remained strong. One in four shoppers viewed an electric or hybrid option. Established automakers like Tesla and Rivian continued to release competitive all-electric models, contributing to an expanding array of choices for eco-conscious buyers.

Among the top brands and models of the first half of 2024, Toyota emerged as the most popular overall brand, while the 2024 Kia Telluride was the most-viewed model. The 2025 RAM 1500 took the title for the most popular upcoming model, while Tesla claimed the most popular electric vehicle brand with its Model Y, and Rivian was noted as an emerging all-electric brand.