2016 Tacoma model will have more horsepower, higher price

The long-awaited remodel of the Toyota Tacoma is entering the market in September with a snazzier interior, more off-road features and an 11 percent boost to its starting price.

The 2016 Tacoma — the brand’s first major redesign in a decade — will include perks such as a GoPro camera mount, devices to block road noise, and optional sunroofs and leather seating. It will also have about 18 percent more horsepower in its V6 engine, with a “bolder, more muscular design” geared toward off-roaders, said James George, Toyota’s marketing manager for the Tacoma.

“It definitely has a more modern feel to it, but at the same time it carries over the DNA of the Tacoma,” George said.

The new features come at a price. Toyota announced recently that the 2016 Tacoma — which is made in San Antonio and Tijuana, Mexico — will have a starting price of $23,300 for a basic 4x2 model, up from the current $20,965.

Enhanced editions of the 2016 model will have higher starting prices, costing up to $37,820 for the 4x4 with a V6 Limited engine and a six-speed automatic transmission.

The Tacoma’s new starting price is above those of other compact trucks such as the 2016 GMC Canyon, which starts at $20,955, and the 2016 Chevrolet Colorado, at $20,120. Cost of the 2015 model of the Nissan Frontier starts at $17,990.

Jessica Caldwell, a senior analyst at Edmunds.com, said she doesn’t think the price hike will be a shock to consumers. She pointed out that transaction prices for pickups have been on the rise recently as manufacturers have met consumer demand for more luxury features. Many pickup buyers will still be attracted to the Toyota brand and the Tacoma’s reputation, including its high ratings for resale value, she said.

“We’ve seen transaction prices go up a lot for trucks,” Caldwell said. “I think the fact that the (Tacoma’s) price has gone up is probably expected.”

The Tacoma’s new frills were made in response to customer requests, George said. The 2016 model is also modeled after “a desert racer sort of vehicle,” he said, with new features such as “multi-terrain select,” which allows drivers to switch the vehicle’s settings based on what terrain it’s on, and “crawl control,” a sort of low-speed cruise control intended to help off-roaders concentrate on steering. Consumer surveys show that half of Tacoma drivers go off-roading, George said.

On top of that, the 2016 model will have a new mix of high-strength steel in its frame and a V6 engine capable of generating 278 horsepower, up from 236 in the 2015 model, according to a Toyota news release. The new engine will get 18 miles to the gallon in the city and 23 on the highway in the 4x4 automatic edition, up from 16 miles per gallon in the city and 21 on the highway for the 2015 model.

The Tacoma has been on a hot streak this year. Sales volume has been rising at a double-digit rate since December, according to sales figures released by Toyota. In July, the company sold 17,033 of the pickups, a 28.6 percent increase from the 13,249 it sold in July of last year.

With 106,000 vehicles sold from January to July, the Tacoma has far outsold competing compact pickup brands this year, including the Chevrolet Colorado, with 49,000; the GMC Canyon, with 18,000; and the Nissan Frontier, with 39,000.

Earlier this year, strong Tacoma demand prodded Toyota to hire 300 workers for its Tijuana plant. Bill Fay, general manager of the Toyota division of Toyota Motor Sales, told the Express-News in July that the company is studying ways to boost production of Tacoma and Tundra pickups at the South Side plant because sales are restricted by supply.

Analysts say the Tacoma is benefiting from a growing demand for pickups sparked by low gas prices, more efficient engines, and the recovering economy and housing market. More consumers are looking at pickups as leisure and family cars as automakers have added luxury features and given them more comfortable interiors.

At the same time, the pickup market is becoming more competitive, analysts said. Last year, General Motors resumed making the Canyon and the Colorado after shutting down production in 2012. Next year, Honda plans to bring back its Ridgeline pickup, which it stopped making in 2014, and Nissan is preparing an upgrade of the Frontier.

The return of the Canyon and the Colorado gave Toyota an incentive to update the Tacoma, analysts said. The model’s redesign was “really necessary to keep it competitive in the market,” said Karl Brauer, a senior analyst at Kelley Blue Book.

The 2016 Tacoma is set to hit the market Sept. 10, George said, and Toyota is planning an “emotional, exciting” ad campaign focused on the pickup’s target buyers.

“They’re young, they’re active, they love to play in the dirt,” George said. “It’s going to be very much a lifestyle-driven campaign.”