GM updates its highly profitable large SUVs

DETROIT – General engines has updated its highly profitable large SUVs for Chevrolet for the 2025 model year to defend the brand’s long-standing leadership in this segment.

The Detroit automaker’s Chevrolet Tahoe and Suburban have dominated the mainstream full-size SUV segment for more than 45 years, according to GM. But increased competition from automakers such as Ford engine, Jeep and Nissan Motor have slowly eaten away at the automaker’s market share.

“We’re playing a little bit of offense with what we’re doing today,” Chevrolet Vice President Scott Bell said Tuesday at a media event in suburban Detroit. “We certainly have an answer to provide to our competitors in several segments.”

Chevrolet’s retail market share for full-size SUVs is approximately 34.2 percent. Adding its GMC Yukon and Yukon XL siblings, GM’s share rises to 64 percent of the industry, according to the automaker. That’s down from more than 70% during the last complete vehicle redesign for the 2020 model year.

Large SUVs for GMC have also been updated for the 2025 model year. Ford and Nissan have updated their large three-row SUVs that are on sale this year.

Vehicle updates in general include new styling, larger interior screens, improved performance and, in some cases, the addition of new premium models to increase profits.

For Chevrolet, the 2025 Chevrolet Tahoe and Suburban check many of these boxes and include the addition of GM’s Super Cruise advanced hands-free driver assistance system.

“Overall, they are critical to our portfolio,” Bell told CNBC. “They are very important to us from a profitability perspective, and have been for four years.”

Starting price for the 2025 Tahoe will range from about $60,000 for a Tahoe LS to more than $83,000 for the top-of-the-line High Country. In 2025, prices for the Suburban will start from around $63,000 to over $86,000. Prices include mandatory $1,995 destination charge.

The updated SUVs should begin arriving at U.S. dealerships in the coming weeks, the company said.

Edmunds.coma wholly owned subsidiary of CarMaxreports that the mainstream full-size SUV segment grew to account for 2.7% of the U.S. market this year, up from 2% in 2017. Sales in the segment totaled approximately 312,500 units through September of this year.

GM said sales of the Chevrolet Tahoe and Suburban were significantly lower this year due to the model year change and reduced fleet sales, but the brand continues to easily dominate the segment.

Combined sales of Chevrolet SUVs, which are essentially the same vehicle but in different sizes, were down 19.3% through September compared to a year earlier, at 102,292 units.

Sales of the Ford Expedition – Chevrolet’s closest SUV competitor – totaled 73,396 units in 2023. Sales of this vehicle increased 3% through September of this year to more than 58,000 units.