Americans are learning to love smaller cars as gas pump pain deepens

Americans love their cars - but they might be beginning to appreciate them at a slightly smaller size, new research has revealed.

Sales of subcompact SUVs and crossovers are projected to rise 33.6 percent year-on-year, according to auto industry data firm Cox Automotive.

The class includes vehicles like the Honda HR-V and Chevrolet Trax. Sales in compact and mid-size cars, like the Toyota Carolla and Nissan Altima, are also up nearly 20 percent, Cox reported.

The reason is clear: People in all states are experiencing high gas prices, linked to the Iran War, that are pinching already tight budgets battered by rising inflation and the president’s tariffs. An average gallon of gas in the U.S. was $1.24 higher Friday than this time last year.

So size matters. The top-selling subcompact SUV, Chevy Trax, does 30 miles per gallon. A base model Ford F-150, the best-selling truck in the country, gets 23 mpg.

The average American driver would save around $50 a month driving an HR-V instead of an F-150, according to data platform True Driving Cost.

At least one carmaker is taking note of shifting preferences. This week, Antonio Filosa, CEO Stellantis NV, which owns Jeep and Ram, said the company is looking to boost profits with a new compact pickup truck.

The Ram Rampage will roll out in 2028 to compete with Ford’s compact pickup, the Maverick. The company also plans to introduce seven new vehicles in the next five years that will cost less than $40,000, including two vehicles under $30,000.

An average new car in the U.S. sells for around $50,000.

Honda has also spotted the trend, the company’s vice president Lance Woelfer told The Wall Street Journal this week. Drivers who may have never considered a sedan are now showing interest in vehicles like the Honda Accord, he noted.

“Because of increased pressure on the consumer, they are considering a passenger car today when before they weren’t,” Woelfer said.

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