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Americans Are Buying Cheaper Cars

  • Affordable is winning with compact sedans, SUVs in favor
  • Industry has maintained demand despite higher auto loan rates
Toyota, GM US Sales Signal Shift Back to Cheaper Cars
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Toyota Motor Corp. and Honda Motor Co. notched big US sales gains to start the year and General Motors Co. grew retail deliveries as demand for lower-priced models help automakers defy expectations for a broad slowdown.

Toyota saidBloomberg Terminal Tuesday that deliveries rose more than 20% in the first quarter, buoyed by the compact Corolla sedan and RAV4 crossover. Honda’s CR-V crossover and Civic compact drove the Japanese automaker to a 17% sales increase. GM reported a 1.5% drop in units sold during the quarter due to lower purchases by corporate fleets, but increased sales at retail by 6% with its Chevrolet Trax compact showing the biggest gain.