2014 Prius Plugin price drops - $2k and $4.6k, no reduction of features.

Toyota | 2014 Toyota Prius Plug-In to Start Under $30,000

I guess that's Toyota's back-fight to Volt's $5,000 price reduction.

 

That's based on laptop driving the demand. Now, laptop market isn't as rosy and shrinking. I am afraid that kind of progress may not sustain.

 

Why? Phones, tablets and EVs/PHEVs are surely growing more than laptops are shrinking. By a lot.

Mike

 

In dollar terms battery cells might be shrinking. In volume terms, Panasonic is expanding battery cell production to satisfy tesla demand, but it may be doing it too slowly. Rumors are that Samsung may be brought on line to expand to satisfy the demand Panasonic can not. If cells for laptops were shrinking faster than car demand was growing, Panasonic could simply shift production. Competition between the korean and japanese companies should force continued price declines. Besides laptops, and cars, there is a need for battery improvements for phones and tablets. As batteries get smaller and cheaper all these devices benefit.

 

They don't use standard size so there aint gonna be as much volume mass production cost reduction like Tesla enjoys.

 

The technology is similar. Progress drops all costs.

Tesla decided to leverage the most popular laptop cell with some small modifications, which gives them more leverage to drive down costs quickly, but if tablet batteries break some tech barrier, the technology will go into those cells.

 

Don't act like I said cost reduction would stop. Read my post again.

 

Well then what are you saying if you think the volume will shrink to reduce costs? The volume is definitely there. The 5%-8% per year cost reduction appears supported by improvements in battery chemistry. Are you projecting a cost increase with materials? A 1% decrease?

In 2008, Toyota was saying costs would be $1200/kwh for a prius phv. For the next generation, costs should be between $375-$500/kwh if they use the tech in the prius phv. If they switch to the tech in the rav4 bev, battery costs are lower. That should mean a larger pack in the next generation, or as the toyota spokesman said, "we are listening to customer requests for a larger battery pack".