Toyota is expected to make major changes to the 2016 Tacoma in a bid to retain its sales lead.

With the North American International Auto Show approaching fast, Toyota is offering a first teaser glimpse at the next-generation Tacoma pickup it will unveil on January 12th.

The maker isn’t saying much about the replacement for its midsize model, though Toyota division General Manager Bill Fay recently called Tacoma “part of our DNA here in North America.” Early versions of the truck helped win over the Baby Boomers who have become the loyal mainstay of the Toyota brand.

Expect to see a more modern, feature-rich model with improve towing and cargo capacity, according to industry insiders, while the 2016 Toyota Tacoma will almost certainly deliver improved fuel economy over the fairly poor 17 mpg City/21 mpg Highway achieved by the current model.

That’s barely up to the levels delivered by the V-8-powered Chevrolet Silverado, never mind Chevy’s new midsize Colorado pickup. And the Colorado is posing the biggest threat to Toyota’s midsize truck dominance in years.

The current Toyota Tacoma.

Tacoma sales slipped 4.1% during the first 11 months of the year, to just 140,757. That’s all the more significant considering the overall surge in U.S. new car sales and, in particular, soaring demand for pickups and light trucks.

This week named a finalist for North American Truck of the Year, Colorado currently has a meager 11 days supply on dealer lots, compared with an industry-norm 60 to 70 – though it’s also in ramp-up stage, so inventory levels will likely increase as production increases and the original order bank is fulfilled.

(Chevrolet Colorado a hot contender for North American Truck of the Year – but competition is stiff. Click Here for the story.)

Nonetheless, the Chevy Colorado and near-twin GMC Colorado pose a real challenge as the first truly new products in the segment in years. There’s a bit of a chicken-and-egg problem, analysts note: automakers have been reluctant to commit the money needed for new products in a midsize segment that is running at barely 10% of its 1970s-era peak. But the lack of competitive offerings has clearly led many buyers to either upgrade to full-size models or abandon pickups entirely.

Expect to see the new 2016 Toyota Tacoma add a number of new features, including an updated infotainment system and new safety technologies. LED lighting is a possibility, and there will almost certainly be improvements to the bed, such as new ways to tie down cargo.

(Click Here for details about the Tacoma’s debut in Detroit.)

On the powertrain side, speculation is that it will go with a downsized V-6, possibly even offering a high-mileage, turbo-four, as well. A six, even seven or eight-speed automatic gearbox could also be in the offing.

Expect to see several different cab configurations, including a Crew Cab, but Toyota has already cautioned that the base Regular Cab package is gone for good.

(To see more about the UAW’s expectations for its future with Volkswagen, Click Here.)

Toyota’s not the only one working up a new truck, but Nissan’s next-generation Frontier is still a couple years away. As for Chrysler, it is still debating the merits of a replacement for the now-gone Dakota. The company has yet to come up with a workable business case, well-placed sources told TheDetroitBureau.com. Ford is also watching to see if the midsize truck market responds to the new sheet metal before committing to a U.S. version of the Ranger it recently launched in other parts of the world.