Toyota Discounting Rav4 EV After Disappointing Sales Figures

Toyota Motor Corp. (7203) is discounting its all-electric RAV4 through low-cost lease and loan offers to boost demand for the slow-selling compact crossover that’s powered by a Tesla Motors Inc. (TSLA) battery pack and motor.

Toyota, the world’s biggest maker of hybrid autos, this month is promoting the option of a $299-a-month, three-year lease for the $49,800 light truck, or a 60-month, no-interest loan, said Carly Schaffner, a company spokeswoman. The offers run through Sept. 3 and are available only in the Los Angeles and San Francisco regions, the vehicle’s main markets.

Honda Motor Co., Nissan Motor Co. and General Motors Co. (GM) similarly have turned to discounted leases to buoy their rechargeable models. Toyota last year said it would sell 2,600 RAV4 EVs by the end of 2014. Through July, just 709 have been delivered since sales began last September.

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quizz - 8/28/2013 2:24:39 PM

+1 Boost

So nobody at Toyota thought that pricing a RAV4 at $50,000, regardless of the technology, was a bad idea to begin with? Whoever did the market research and focus testing needs to be fired. If I'm spending $50,000 for "high tech" car, why not buy a Tesla?? If I'm spending $50,000 to save on gas, why not buy a flashy BMW or MB diesel? And the list goes on.

I would be embarrassed trying to justify why I spent an extra $25,000 on a RAV - even the fuel savings doesn't offset the price premium unless you're driving this thing for 7+ years, and then what? You have a worn out battery you'll have to pay $10K to replace? Unbelievable.