In a bid to boost sales, Toyota Motor Corp. (TM - Analyst Report) has decided to cut the prices of 2014 Prius plug-in hybrid vehicle. The competitive pricing will put the automaker’s Prius in a favorable position against its peers.
The plug-in cars provide better gas mileage on electric charge than regular hybrids. Toyota’s sales in Sep 2013 had declined 4.3% on volume basis to 164,457 units, although it increased 4% year over year on the basis of daily selling rate (DSR).
Reportedly, Toyota’s 2014 plug-in Prius will now be available at a minimum price of $30,800, reflecting a sharp $2,100 drop. The price also includes the $810 shipping fee.
Toyota will be producing the 2014 Prius from this month itself and will be commercializing it from November. The 2014 model will have fresh features like standard heated cloth seats. The current version of Prius is available in 15 states of Arizona, California, Connecticut, Hawaii, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia, and Washington.
Other prominent players in the automobile industry such as General Motors Company (GM - Analyst Report), Ford Motor Co. (F - Analyst Report) and Nissan Motor Co. Ltd. (NSANY) had also cut prices to make their vehicles more affordable in the competitive industry.
In Jul 2013, General Motors announced an incentive of $5,000 on the Chevrolet Volt plug-in hybrid, which is priced at nearly $40,000 before federal and state tax credits. In Jul 2013, Ford had announced that the 2014 Focus Electric compact car will be cheaper by 10%. The 2014 Focus Electric base model carries a price tag of $35,200. This reflects a $4,000 cut from the 2013 model’s base price of $39,200.
Toyota plays a pivotal role in shaping the global automobile industry. Its increased focus on hybrid offerings and substantial recapturing of sales from top U.S. automakers like General Motors and expanding business in emerging markets stand testimony to its growing presence on the global map.