Toyota Pins Its Hopes on Revamped 4Runner to Beat Ford and Hyundai
The carmaker’s revamped lineup of midsize SUVs comes after a recent loss of market share. But the timing may not be in Toyota’s favor.
Illustration: Saratta Chuengsatiansup for Bloomberg Businessweek
Compact SUVs may be the hottest growth segment in the US car market, but the midsize SUV remains a fixture in American driveways. With ample cargo space, seating for as many as eight and optional four-wheel drive, these vehicles offer added functionality for people who’ve outgrown their Ford Escape or Honda CR-V, and they’re a key contributor to carmakers’ bottom lines.
Toyota Motor Corp., the world’s largest automaker, should be a big beneficiary of the category’s staying power, particularly as owners of its best-selling RAV4 compact look to trade up to something roomier. But models like the 4Runner and Highlander have been facing stiff competition from comfort-packed rivals such as the Hyundai Palisade and the Jeep Grand Cherokee. In 2022, Toyota slipped out of second place in midsize SUV sales; it’s now in fourth, behind Jeep maker Stellantis, Hyundai and Ford, according to data from Cox Automotive. Throwback features are part of the problem: The 4Runner hasn’t undergone a full model change in 15 years—nearly double the time manufacturers typically wait.