Gearing Up for Change in America’s Classes 1–2a Light-Duty Vehicles

The classes 1–2a light-duty vehicle market is entering a new phase, shaped by shifts in technology, customer expectations and competitive dynamics. The American pickup and van are no longer just tools of the trade. They’re rapidly evolving into digitally connected, electrified workhorses built for a new era of mobility.

In part 1 of this series, we examined the current state of the segment, from market leaders and design trends to technology integration and the decline of small vans. Here, we focus on what’s ahead—how new powertrains, fresh entrants and evolving capabilities will influence strategies for OEMs, body builders and upfitters in the years to come.

BEVs on the Rise With Classes 1–2a Light-Duty Vehicles

Battery-electric pickups are gaining traction, with models such as the Ford F-150 Lightning, Chevy Silverado EV and GMC Sierra EV driving growth in 2024. While they made up only about 2% of total pickup sales, according to our Commercial Vehicle Competitive Landscape Powertrain Build Plan, lower operating costs, zero tailpipe emissions and features such as instant torque and bidirectional charging are expanding their appeal.

Challenges remain—specifically in towing performance, range confidence and charging infrastructure—but advancements in battery chemistry and vehicle software are improving performance and usability. The loss of some federal incentives is slowing momentum in the short term due to increased BEV prices reducing customer demand, but upcoming model updates, expanded charging networks and better fleet integration tools are set to push BEVs further into the mainstream over the next decade.

Hybrids Hold Their Ground

With emissions standards tightening and charging infrastructure still uneven, hybrid powertrains are expected to remain a critical transitional solution in the classes 1–2a mix over the next decade. Expect more plug-in hybrid systems with longer electric-only range and faster charging, making it easier to complete daily routes without relying on the gas engine. Advances in battery technology, regenerative braking and integrated power management will further improve efficiency.

For manufacturers, hybrids will remain a practical way to meet regulatory goals and customer expectations while avoiding the range and charging limitations that still hinder BEV adoption in many commercial applications. 

EREVs: Expanding Electric Capability Without Range Limits

Extended-range electric vehicles (EREVs) are emerging as a bridge between hybrids and full battery-electric pickups. Unlike conventional plug-in hybrids, EREVs use an internal combustion engine strictly as a generator, enabling electric-only propulsion while addressing range concerns.

Ram’s upcoming Ramcharger, expected in 2026, will feature a liquid-cooled 92 kWh battery paired with a 3.6-liter V6 generator, delivering a range of about 700 miles. Dual electric drive modules will produce a combined 654 horsepower and 615 pound-feet of torque, enabling 0–60 mph acceleration in 4.5 seconds.

With a maximum towing capacity of 14,000 pounds and a payload capacity of 2,625 pounds, the Ramcharger is positioned to attract buyers who want both high performance and the ability to operate in electric-only mode for shorter trips.

While adoption is still in early stages, EREVs could gain traction among fleets and individual buyers who want electric capability without the operational limitations of BEVs, especially in regions where charging infrastructure remains inconsistent.

How Technology Is Reshaping the Classes 1–2a Light-Duty Vehicle Segment

Technology is becoming just as important to a pickup’s value as its mechanical power. Over-the-air (OTA) updates keep vehicle systems current without a service visit. Driver-assist features such as adaptive cruise control and lane-keeping assist support both commuting and worksite navigation. And integrated fleet platforms, such as Ford Pro, combine telematics, fleet management tools and connected services in one system. These tools reduce downtime, help plan routes more efficiently and improve consistency across vehicles.

5G connectivity and other advanced communication tools are also beginning to change how pickups are purchased and managed. They give operators and fleet managers the ability to monitor vehicles in real time, streamline maintenance and make better use of resources. For OEMs, this level of connectivity can create new service and subscription offerings, adding revenue while delivering more value to customers.

Onboard power systems, advanced camera views and configurable digital dashboards are also becoming standard, giving operators more control and flexibility on the job. Together, these advancements are influencing not only how trucks are used, but also the overall ownership experience.

New Classes 1–2a Powertrains, Players and Products on the Horizon

While internal combustion engines (ICE)—particularly V4, V6 and V8 engines—continue to have a central role in the North American pickup market, new powertrains, models and body styles are set to expand available options in the classes 1–2a market.

New entrants are bringing different approaches to design and pricing. The all-electric Slate Truck, expected in 2026, targets affordability and modularity, starting at $28,000 before incentives. Ford plans an electric Maverick for 2027, and Volkswagen’s Scout Terra will target off-road and lifestyle buyers. These models may not match established players in volume at launch, but they bring fresh thinking to the segment.

In the van market, Ford is planning a 2026 return with a digitally advanced commercial model designed for urban delivery and service work. Equipped with connected services and fleet-focused capabilities, Ford is expected to cater to the growing need for compact, electrified service vehicles designed for last-mile delivery and tight city routes. Similarly, Hyundai and GM announced they are teaming up to introduce an all-new electric van in the US in 2028. While pickups will remain the more versatile choice for most buyers, a modernized van option could reclaim space in specialized fleet applications.

Poised for the Road Ahead

Classes 1–2a light-duty vehicles are entering a period of steady but meaningful change. Battery-electric models will gradually expand their reach, hybrids will remain a dependable choice for efficiency and capability, and new options such as extended-range EVs will open the door to wider electrification.

At the same time, new entrants and evolving body styles will test how far the segment can stretch to meet both commercial and lifestyle demands. Through it all, these trucks will continue to be defined by the same core strengths: utility, adaptability and staying power in an unpredictable market.

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