The market for high-performance trucks is growing at a CAGR of more than 3% during the forecast period, 2020-2025.
Key Highlights
- In the beginning, trucks were essentially only for heavy-duty work. Modern automakers have adapted this vision with the introduction to high-performance lorries, which can be used as an everyday vehicle and offer higher comfort with seating for five people, improved interiors, and improved fuel efficiency.
- Pickup trucks have been on the market for more than a century but were never meant to be high-performance vehicles. Increasing demand for high-performance commercial vehicles from the manufacturing and industrial sectors is majorly pushing the sale. North America is leading the high-performance truck market. The increasing demand for performance trucks has also helped to increase export from the United States.
- The commercial trucks are also getting modified for the internal engine components with new pistons, connecting rods, camshafts, and other equipment to enhance performance and adequate boost. The primary characteristics of a pickup are large cargo capacities, heavy-duty components, and prolific ground clearance. The demand for downsized engines and the rampant use of additional power trains to boost the engine have brought about the evolution of high-performance trucks in recent years.
Key Market Trends
Electric Trucks will Boost the Market Growth
Companies such as Ford Motor and General Motors, which are the high-performance truck market leaders, are introducing various electric high-performance electric trucks in the market. These electric trucks offer powerful electric powertrain and the best interiors and other premium options like touch screens, leather seats, and panoramic glass.
For instance, in 2019, Tesla launched the Cybertruck in three variants, tri-motor AWD, dual-motor AWD, and a single-motor rear-wheel-drive. With top variant figures like 500 miles range, 0 to 60 mph in 2.9 seconds, and a 14,000-pound towing. However, the first trucks will hit the market by 2021.
Whereas Amazon and Ford funded startup Rivian, one of the major startups in the electric pickup market with its model R1T. The startup is offering 400 miles range with its 180-kilowatt-hour battery pack. This 700 horsepower pickup truck was supposed to roll out from the factory in 2020, but due to the pandemic, it will be possibly hit the market in 2021.
Whereas major players in the market are expanding their production facilities for their new electric models. For instance, in September 2020, Ford broke ground in its new manufacturing plant in Dearborn, Michigan, where it will build an electric F-150. Ford has spent around USD 700 million to build this Rouge Electric Vehicle Center, manufacturing the F-150 Power Boost hybrid and fully electric F-150. The company has also announced that it will spend around USD 11.5 billion to produce 10 to 15 electrified models by 2022.
North America Holds Major Market Share
In 2019, trucks accounted for more than 15% of all vehicle sales in the United States. Consumers looking for a high-performance truck predominantly look for size and power. Also, the luxury truck market is becoming more prevalent in the United States.
High-performance trucks are also leading the United States' resale market, making it the most dependable vehicle that would lose lesser money than sedans and crossover. Despite COVID-19-related pressures, the truck market established strong first-quarter sales in the United States.
Similarly, in 2019, Hyundai announced that the company would invest USD 410 million to expand at its Montgomery plant. The facility already builds the Santa Fe SUV and the Sonata and Elantra sedans, and it will start production of the Santa Cruz light truck, which will begin in 2021.
Whereas major truck manufacturers are launching various new truck models in the market. For instance, in August 2020, Fiat Chrysler launched a new performance pickup truck, Ram 1500 TRX, which comes with a 6.2-liter supercharged Hemi V8 engine capable of 702 horsepower and 650 foot-pounds of torque. It has an eight-speed automatic transmission.
Competitive Landscape
The high-performance trucks market is fragmented with various international and regional players such as General Motors, Ford Inc., Fiat Chrysler Automobiles, amongst others. Major players in the market are increasing their production capacities to meet the increasing demand. For instance,
- In 2019, General Motors announced that it would invest USD 150 million in its Flint truck assembly plant to increase full-size pickup truck production. At the same time, USD 24 million in its Fort Wayne assembly plant plans to increase the Chevrolet Silverado 1500 and GMC Sierra 1500 pickups and other crew cab models.
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