Toyota's Secret Weapon? Why a Compact Pickup Could Shake Up the U.S. Market

Toyota’s compact pickup would be one of three

It’s been a hot minute since Toyota has had a small pickup in the United States market, but rumor has it that’s going to change in the next few years. Currently, there are just two small trucks available: the Ford Maverick and Hyundai Santa Cruz. With midsize and full-size trucks growing in size and increasing in price, there’s a massive gap waiting to be filled—and there’s a reason no automaker has closed it.

The lack of a small pickup in the Toyota lineup has its roots in the Chicken Tax of 1964, which insulated domestic automakers from foreign light-duty vehicle imports. As I’ve discussed previously, the U.S. light truck market is still feeling the ramifications of the tariff 60 years later. While South Korean automakers are exempt from the 25% tariff due to the U.S.-Korea Free Trade Agreement, hence the Hyundai Santa Cruz, Japanese manufacturers aren’t as fortunate. As a result, Toyota’s compact pickup would likely be produced in the United States.

Rumored Toyota compact truck could be based on the Corolla

Toyota isn’t exactly shy about using the Corolla nameplate, and rightly so, considering it’s the best-selling vehicle of all time, as well as a household name. So far, we have four iterations of the moniker, including a crossover, hot hatch, hatchback, and sedan. If Toyota were to emblazon the Corolla’s name on a compact truck, it’d be the fifth in the lineup. Regardless of the name, the Japanese automaker has been listening to dealer requests for a smaller truck to slot beneath the Tacoma for some time now. “We’re looking at it,” Mark Templin, Toyota’s U.S. Chief Operating Officer, told Bloomberg.

Considering Toyota is shifting towards hybrid powertrains, odds are a new compact truck would follow suit. After all, the best-selling Toyota Camry is only available with a hybrid powertrain, as is the Toyota Sienna and a handful of other models. Ford has already set a precedent for a hybrid powertrain within the segment as well. When the Maverick debuted back in 2021, a 191-horsepower hybrid powertrain came standard, while a turbocharged four-cylinder engine was available as an upgrade.

For the sake of speculation, if Toyota were to release a Corolla-based compact truck, can we expect a performance model similar to the GR Corolla hot hatch? It’d certainly fill a niche, but whether such a thing is worth exploring is questionable at best.

Will American brands fight back?

Despite their prowess and dedication to the full-size truck segment, Chevrolet and Ram have yet to introduce a compact truck. To make matters more confusing, while Chevrolet offers the Colorado, Ram has yet to introduce a midsize truck of its own. There is a glimmer of hope from Ram, though, as according to the automaker, a midsize pickup will join the ranks as early as 2027.

That still leaves the compact pickup segment in a rather interesting state, though. Ford and Hyundai are the only two manufacturers with a small truck in their lineups. Whereas the Ford Maverick sold more than 130,000 units in 2024, the Hyundai Santa Cruz lagged behind with around 32,000 units sold. While it doesn’t tell the whole story, badging plays a role in the compact truck segment’s performance. Ford is known for making trucks, Hyundai isn’t, and that alone could be the difference for Toyota, too.

Toyota has been building trucks for years, and its reputation for reliability and longevity speaks for itself. If the Japanese automaker were to introduce an affordable compact pickup at Corolla-level pricing, it could end up taking the entire segment by storm.

While Nissan could introduce a compact truck alongside the Frontier, it doesn’t seem like the automaker is in the financial position to do so. Nissan is in a precarious position, and considering it ended production of the full-size Titan, I wouldn’t hold my breath on a new compact model. Then again, Nissan did reaffirm its dedication to the United States market, so there’s a chance, right?

“North America is a key market, and we are taking quick actions to get us back to growth and set the stage for the exciting products to come,” said Christian Meunier, chairman, Nissan Americas. 

Final thoughts

It’s no secret that midsize and full-size trucks have grown exponentially compared to a decade or two ago. Having recently driven a Chevrolet Colorado and Ford F-150, I can see why consumers might opt for a compact truck. Interestingly, while Ford has introduced the Maverick to fill that void, Chevrolet and Ram have been slow on the uptake. Now that Toyota seemingly has plans to introduce its own compact truck, I can’t help but wonder if the two American truck brands will add a compact pickup of their own in the near future. 

Then there’s a wild card in the mix: Slate. What effect could the compact all-electric pickup have on the segment? Currently, electric trucks are limited to full-size models, like the Ford F-150 Lightning, and are often on the more expensive side. The introduction of an electric compact truck could turn the entire segment on its head, provided it’s a good offering. No matter how you look at it, the compact truck segment is picking up steam, and it’s only a matter of time before it boils over.

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