PHEV Prius for $48,000????

Guys, that article is over 1 year old, fyi.

 

The article is a year old. Also, were they actually discussing US $'s or were they Aussie $'s etc?

I know that the PHEV will be very competitively priced when it is actually released.

 

You KNOW?!

 

I don't believe that price will be close to the actual price next year.

That said, I do expect the base PVH to be between $5K-8K more than the base G3 Prius.

From a marketing standpoint, Toyota would be wise to keep it under $30K...I expect right around $28-$29K.

 

The PHEV in the picture is the old Gen2 PHEV prototype which never really made it far in life--definitely not the same as the newer Gen3 PHV prototype.

Andrew

 

Even at that price the Prius PHEV makes no sense at all. They need to sell it for approx 26K.

 

Well, and from what I've read on this site, there are people who would buy - no matter what the price was.

I think the danger Toyota has is pricing a base PVH prius too close to a base Prius. If I can get a G3 for $22K, and a similarly equipped PVH Prius for $26, then I believe the price differential is close enough to siphon away some buyers, from buying the base G3. But Toyota should know this market very well by now, and I'm sure wherever they price it, it will be at a large enough differential so as not to compete (in any significant numbers) with one of it's own models. A $4K differential might be enough? Not sure?

I think my strategy would be to price it in the high $20's, but comes standard with features most buyers want - ie, leather and Nav, etc. Understand that the volume sold would be lower than if the price was say, $25K. I would keep it at this price for a couple of years, or until they were 100% confident in their real-world data, tabulated from 10's of thousands of PVH cars sold. Then introduce a watered down version, that's priced closer to the base G3.

The way I think of the PVH is - it's a G3, but now has the new option of being able to plug-in. If the option price for the sunnroof/solar package is close to $4K from toyota...how much should we expect to pay for the plug-in option, which realistcally, will cost more than the sun roof and solar panels. I'm guessing a minimum $5K differential, and won't be surprised at all if it's closer to $7K.

 

Even though it may not be very popular, I am thinking that like the solar panel / tech package issue, they may just go sideways with the price and have it be (like above a G3 model 3 + PHEV), for only a few thousand more, but you won't get the model 4 or 5 options like the tech package/solar/lane assist, etc.

I'm sure people would complain about it, but it would keep their price point low enough to ensure interest, as Lincoln did with their hybrid, having the same price for hybrid or ICE version, but you basically get less horsepower with the hybrid version to make up the difference.

The guy from Better Place also talked about having the vehicles priced even below what the ICE is selling for to help provide an incentive for buyers, although you do run the rise of poor quality being perceived from a lower price...

 

Right. With so many EVs coming up - I don't think Prius can keep charging a "green" premium.

PHEV Prius needs to be not a whole lot more than a similarly equipped Leaf after credits.

 

Well, given that the bigger electric motor, added sensores and other electronics, and the Li batteries will add significantly to the cost of the vehicle....I would be extremely surprised if it undercut, in price, the current g3.

IMO, Toyota is going to do what they think will maximize profits. That's usually what most companies do. That said, to price the plug-in too close to an existing product they have, will not expand their market share...it will only redistribute what buyers they have for hybrids. As it is, July sales figures for the g3 are down something like 24%, with some of the reasoning being - some buyers who might already have purchased g3's, are taking a wait and see attitude as plug-ins and EV are released. If Toyota drammatically cuts their profit margin on the plug-in, so that it competes (price wise) with the existing G3...then no question sales of G3's will decrease and sales of plug-ins will increase...but if Toyota has slashed their profit margin on plug ins to remain aggressive, does Toyota net profits increase, or is it a wash... or even a loss? The price point for the plug-in will be critical to Toyota gaining market share, and not simply re-distributing hybrid customer between the different Prius options.

I also don't think that the same segment of the buying market - who's interested in EV's (ie the Leaf) - are also strongly interested in the plug-in. I could be wrong, but I would think those two segments of the market are looking for different things - ie, plug-in hybrid technology is evolutionary, while EV is perceived as being more revolutionary, and for many, far too risky.

 

a lot of people don't have a place to plug in unless you're stealing it from work. so i would think non-plugins would still sell well.

 

I'm betting Toyota will price it at around $29,000, so they can advertise it as the lowest priced plugin. Even at that I think they'll be eating some of the cost of the additional battery pack!

 

That strategy was successfully employed with their Lexus brand for the first 5 years (or so). But in that case, Toyota was NOT yet a player in the upper-end, so they basically had to offer as good (or better) product than the European's, but at a cheaper price.

In this case, if they lower the price too much, then they begin to compete with themselves. Lower plug-in prices just means a re-distribution of buyers (within Toyota's own hybrid cars, and, with other manufacturers of hybrids)...it doesn't mean the segment has grown.

The question is: How to grow that segment of the market?

The quickest way is for gas prices to go up, but short of that, the only way they can grow the segment, with respect to other compact cars on the market that get in the high 30's, is through price. Especially in this economy.

 

Well, I'd say the people that are waiting for a PHV are a very small group relative to the people who are being affected by the economy such that they can't buy a new car at all, let alone a Prius. Or are you saying that newly minted G3 owners would buy another G3 this year were it not for the future PHVs?

Good question. We shall find out soon. I have my theories, which don't sound dissimilar from yours.

Tony, doesn't that imply that all other characteristics of the vehicle are identical... power, cargo, HV MPG, brand, quality, versatility, features, materials, etc.? While some buyers might choose SOLELY based on EV range, I think most buyers will consider a host of other qualities when they actually go through the shopping process.

Doug Coleman
Prius Product Manager
Toyota Motor Sales, USA

 

Well, I'm not saying anything.

I'm simply reporting what some car analysts have said, which is, (perhaps) a certain fraction of the car buying public, who might otherwise buy a G3 (now), are postponing buying a hybrid until they see what prices might be for the plug-in hybrid. For these people, it's NOT wanting to have buyers remorse on a $25K-$32K purchase. Makes sense to me.

Antedodal evidence...I know a number of folks that have zero interest in the EV. None. But are interested in either a conventional hybrid, or the plug-in hybrid. IMO, unless there' s a strong delliniation in price between the plug-in and conventional hybrid...those two segments will compete for buyers. A re-distribution of buyers who are interested in hybrids. EV buyers, IMO, are a separate breed. I believe those that are strongly considering the Leaf, and not strongly pursuaded to get a plug-in Prius.