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5 Ways Automakers Can Keep Cars Affordable
The summer of 2025 finds automakers navigating one of the most challenging markets in decades. With rare-earth mineral shortages, shifting tariffs, inflation, and high interest rates, affordability has become the name of the game.
Data from AutoPacific’s syndicated Future Attribute Demand Study (FADS) polled more than 14,000 prospective car buyers on their preferences for over 160 features and technologies. It reveals one key underlying takeaway for the product planners at all major automakers—more and more shoppers value simplicity above all else.
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Automakers need to protect entry-level buyers as economic uncertainty persists. Offering modestly equipped, value-focused vehicles now could build brand loyalty and ensure customers stay in the family when they eventually move upmarket. Here are the top five strategies car companies should adopt to keep vehicles under the crucial $25,000–$35,000 price bracket.
1. Scale Back Premium Features
With the average new-car price creeping toward $50,000, automakers should look to trim non-essential features from base models, which have pushed entry costs higher. Bring back cloth seats, manual seat adjustments, and analog gauges to replace leather upholstery, power seat controls, and expensive digital clusters. Entry-level buyers prioritize affordability and function over luxury.
2. Reintroduce Budget-Friendly Trims
Brands should expand or reintroduce value-focused trims to draw in price-sensitive customers. For example, Ram's Express trim is positioned as a value-oriented model within the Ram 1500 lineup. Nissan's move to continue selling the last-gen Kicks as the Kicks Play is another example. Expect more companies to follow this template instead of letting buyers walk towards the pre-owned side of the dealership.
3. Streamline Tech and Cabin Upgrades
Data from AutoPacific shows shoppers spending under $35,000 are less interested in pricey tech like head-up displays, advanced navigation, or branded premium sound systems. Instead, they want practical features: wireless phone charging, basic touchscreens, and simple button layouts. Automakers can trim costs by making high-end tech optional only on upper trims—trimming costs for consumers also means automakers are cutting into fat margins
4. Keep Performance and Safety Features Sensible
Shoppers in the $25,000–$35,000 price bracket prioritize core safety gear—rear cross-traffic alert, automatic emergency braking, lane change assist—over advanced driver-assist systems like adaptive cruise control with active lane centering. Automakers can save costs by focusing on essential safety features while scaling back expensive semi-autonomous technologies.
5. Adjust Powertrains and Production Footprints
Simplifying the drivetrain lineup and adjusting production can keep costs low. Many budget-conscious buyers prefer front-wheel-drive gasoline engines or mild hybrids over full EVs. At the same time, shifting production closer to the markets where vehicles are sold can minimize the impact of changing tariffs and import costs.
