oyota trims plug-in Prius price to improve sluggish U.S. sales

Toyota Motor Corp. is reducing the price of its 2014 plug-in Prius models to try to boost sales and meet a California mandate as automakers find that cost is critical to U.S. consumers' willingness to buy rechargeable autos.

The world's largest seller of hybrid autos is trimming the base price of the 2014 Prius Plug-in to $29,990, a $2,010 reduction from the current car, while the top-end Advanced grade gets a 12 percent cut to $34,905, Toyota said in a statement. The new versions, which also get a $2,500 U.S. tax credit, go on sale next month.

Existing 2013 Prius vehicles already on dealer lots are not included in the price reduction.

"The reduced price does not include the current 2013 models," a spokesman said today. "It's just going forward."

He noted there are incentives available on the existing models.

“Depending on the region there is a chunk of incentive out there that either takes it near the 2014 price right now or even in some cases possibly below it but it’s hard to say based on region," he said. "There is no national sweeping maneuver to get it at the same price range. But there are incentives out there to help close the distance."

More incentives

The company in August began offering reduced lease and loan deals for its battery-powered RAV4 crossover to spur its sales. Honda Motor Co., Nissan Motor Co. and General Motors Co. have all turned to discounted leases, price cuts or both for rechargeable models.

Toyota is under particular pressure to sell as many plug-in hybrids and battery-only vehicles as possible in California to comply with the state's Zero-Emission Vehicle program. The company has the biggest share of auto sales in the state and as a result must sell the most low-polluting models.

Price reductions for the Japan-built plug-in, which goes 11 miles (18 kilometers) on battery power before operating like a standard Prius, is less painful for Toyota because of a 20 percent drop in the yen's value against the dollar in the past year.

The company said it sold 12,750 of the vehicles in the U.S. last year, missing an initial goal of 15,000. Deliveries through September total 7,974.

U.S. plug-in hybrid and battery-only auto sales total about 67,000 this year through September, based on data compiled by Bloomberg. That's a record and already exceeds the about 52,000 sold in all of 2012. GM's Volt plug-in is the segment's top-seller, with 16,760 deliveries, followed by Nissan's all-electric Leaf hatchback at 16,076, according to the companies.