Exterior of Walnut Creek Chrysler Jeep Dodge Ram dealership with cars on display and signage visible, including Chrysler Pacifica Plug-In hybrid vehicle, Walnut Creek, Calif., March 30, 2023. (Smith Collection/Gado/Getty Images)

By Pras Subramanian

Automakers in the US have introduced a slew of trucks and SUVs over the past few years as American car buyers prioritized utility and space.

But where carmakers aren't meeting a surge in demand is another retro trend making its way to the auto industry: the family minivan.

Last year, minivan sales rose 21% in the US to 393,812 units sold, according to data provided by Edmunds. Meanwhile, overall US sales were up only 2%, according to the firm.

“Minivans currently hold a 2.4% market share, which is the highest level it’s been since 2019 when it was also at 2.4%," said Edmunds director of insights Ivan Drury. "While still a relatively small segment overall, the recent increase reflects how competitive and well-rounded today’s minivans have become."

One factor moving minivan sales is changing family demographics. Older millennials and younger Gen X families are growing, and they need space for kids, gear, groceries, and Home Depot runs.

“For buyers who need a true three-row vehicle, minivans continue to offer some of the best bang for your buck in terms of size, fuel efficiency, and cost,” Drury added. Honda (HMC) reports the Odyssey is the top-selling minivan with millennials.

While minivans may not topple the SUV as king of the mall cruisers, the once-staid minivan is seeing popularity among one demographic that usually skews toward the trucks that dominate US sales lists — men.

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In fact, minivans kitted out with off-road tires and overlanding tents are on the rise. And with these modifications come buyers who want a little adventure, along with those center row captain’s chairs.

"This is attracting a new buyer to the minivan segment, predominantly men around 40 years old," Chrysler president Chris Feuell told Automotive News. "They said, 'Finally, we’re seeing a minivan that’s attractive to me.'"

Chrysler also sees even older buyers in the mix. "We’re also seeing a shift in demographics where we’ve got older buyers," Feuell told the outlet. "You’ve got Gen X and [Baby] Boomers who are entering the grand-parenting life stage."

Stellantis’ (STLA) Chrysler Pacifica topped the charts, selling 110,006 units in the US, up 2% year over year. Sales of its more budget-friendly Voyager jumped 31% to 15,792 units.

Meanwhile, at Toyota (TM), the highly regarded Sienna had a monster year, with sales climbing 35% to 101,486 in the US, trailing only the Pacifica.

Honda’s (HMC) rival Odyssey minivan has been on sale for eight years without a major update, an eternity in the industry, but Honda’s long-in-the-tooth offering is still selling well in the US, with sales up 10.2% last year to 88,462 units, its best sales year since 2019.

And Korean giant Kia (000270.KS) has a hit with the Carnival, with the carmaker moving a record 71,917 Carnivals last year, up 44%, making it the biggest sales gainer for any Kia model.

Generally speaking, minivans are cheaper than SUVs with similar cargo capacity, with the Voyager and Carnival in particular starting around $40,000, more than $10,000 less than the average new car price of around $51,000.

For Honda, the average transaction price of the Odyssey last year was $43,300, well below the national average.

Meanwhile, a range-topping Sienna in Platinum trim can easily top $60,000, approaching Toyota's Land Cruiser and full-size Sequoia territory.

"Recent product updates have also helped renew interest with improved styling across the segment," Edmunds’ Drury said.

"Kia’s launch of the Carnival in 2021 added fresh competition, and models like the Toyota Sienna offering hybrid powertrains and AWD also helped position minivans as a practical alternative to three-row SUVs."

Feuell also said gig economy workers find minivans attractive for short-haul deliveries, citing Amazon, Grubhub, and DoorDash drivers.

In addition to lower load floors and the ability to remove seating or fold flat for more cargo space, minivans are typically less fuel-thirsty than their SUV counterparts.

Minivans are also a popular option for Uber and Lyft drivers, especially in areas with higher-than-average airport runs. In fact, Waymo once used Chrysler Pacifica minivans for its robotaxis, and will now use Zeekr electric minivans for future vehicles.

Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can follow him on X and on Instagram.

Read the original article on Yahoo Finance with vital images.