Is Toyota Pulling a "Bold Move", by Flooding the Market When Demand Wanes?

Is Toyota Pulling a
Toyota Motor Sales U.S.A. Inc. sets a lofty 2007 sales goal of 175,000 units for its Prius hybrid-electric vehicle at the same time demand appears to be waning.

The new sales target represents a 62% hike from 2005’s 107,897 Prius deliveries and a 54% spike compared with this year’s 114,000 anticipated sales.

Some industry analysts find next year’s sales goal overly optimistic considering U.S. Prius sales year to date have seen a downward trajectory, leading to speculation the car has fallen out of favor as newer HEVs launch.

The Prius also may be feeling the heat from new fuel-sipping B-segment cars driving into the U.S. marketplace, including the Honda Fit, Nissan Versa and Toyota’s own Yaris, all of which are eminently more affordable than the premium-priced Prius.

Through August, Prius sales were down 3.3% to 70,447 units vs. like-2005, Ward's data shows. While not a huge drop-off, the slide is notable, as the HEV’s sales have grown steadily since the current generation was introduced in 2003.

Nevertheless, Toyota officials insist the Prius will meet expectations.
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1970toyotamarc1970toyotamarc - 9/27/2006 3:21:27 PM
+4 Boost
"Prius sales year to date have seen a downward trajectory, leading to speculation the car has fallen out of favor"
"Prius sales were down 3.3%"
That's a lot of hyperbole for a 3% drop that everyone atributes to lack of supply.

With demand continuing to exceed supply and the likelihood of higher gas prices once the election is over, Prius sales will remain strong. Toyota rarely over-estimates their saels goals.


1970toyotamarc1970toyotamarc - 9/27/2006 3:23:11 PM
0 Boost
sorry for the double post, computer (or user) glitch.


JUGNUJUGNU - 9/27/2006 3:29:12 PM
+1 Boost
well said 1970toyotatamarc.
And the Prius is doing great.Toyota is selling how much they can produce it.
Demand is sky high as we all know.So 3.3% down is because of DEMAND>SUPPLY.

JUGNU


PlanoA4PlanoA4 - 9/27/2006 3:44:55 PM
0 Boost
Seems like Toyota took a page from the GM book of marketing. A car isn’t moving as fast as you would like, so you crank up the production and slash the prices. The price slashing will follow if Toyota has issues with them selling.

The key obstacle is the Prius is it is too expensive against the Fit and Yaris. They get the same real world mileage roughly and under cut the Prius in price.

TOYOTA IF YOU ARE LISTENING! I HAVE SOLUTION!:

Put “Pleather” in the Prius, add fancy “Ricardo” seats, pop an “Alfine” sound system in it. Put a bow on top of it and slap a Lexus badge on it. Then market it as a leading edge, up market social conscious, entry-level vehicle. You will sell them in droves, those Lexus guys will buy anything!

My flight is now leaving the country.



PlanoA4PlanoA4 - 9/27/2006 4:53:26 PM
0 Boost
Will- I haven't picked on the Toylex guys in a long long time. I imagine they will sell every one of them...some day.



Sauceboy01Sauceboy01 - 9/27/2006 5:26:58 PM
+2 Boost
So what happens to these vehicles and sales when gas prices go back down to say $1.50 - $2.00. Who knows if we'll really see those number but humor me.

Some of you may think.. well those people with hybrids will be savings even more money on gas.. you may be right.. but will the general population think that? or will they start buying SUVs again?


bigslick83bigslick83 - 9/27/2006 6:55:04 PM
+1 Boost
when gas prices go up after the elections?

1970toyota you must be on some fyre crack.




1970toyotamarc1970toyotamarc - 9/27/2006 8:41:22 PM
+2 Boost
I, for one, have missed Plano's ToyLex rants. All the articles posted by you lately seem to favor my beloved Toyota. I am surprised by Toyota's move to so boldly predict increased sales, it's really not like them. They must truly believe they will sell every one. And based on the Prius's history, why shouldnt they.

I am having a hard time getting the image of a Lexus pimped out Prius out of my head. ohhh, a boy can dream.

bigslick, are you high? Everyone knows that gas prices are being pushed artifically lower to impact the upcoming elections, much as they have been artificially inflated over the past 2 years, when no electoral harm would be done. Who runs this government. With an Exxon Valdez name like bigslick, you should know.


2JZSoarer2JZSoarer - 9/27/2006 9:25:14 PM
+1 Boost
I'm a technician for Toyota and since the 2nd gen. Prius first came out,they have not stopped flying out the door !!!It's a hot product and here in Oregon I see them everywhere...


XYZZXYZZ - 9/28/2006 2:56:48 AM
+1 Boost
a few days ago, i saw THREE (3), count 'em, THREE new priuses, plus an ADDITIONAL 1st generation model in a parking lot with a mere 50 or so cars.

that's fully EIGHT percent. (of an admittedly "advanced" group of people.)


XYZZXYZZ - 9/28/2006 3:01:07 AM
+1 Boost
in the automotive TREND SETTING/LEADING state of california, about one out of four new vehicles is a toyota. all domestic brands combined only = 2 out of 4.

as the general population catches up to the more "advanced thinkers," it is not at all inconcievable that TEN PERCENT of new car sales will be priuses. and/or Hybrids generally.




XYZZXYZZ - 9/30/2006 6:36:33 AM
+1 Boost
it was once calculated that if 28% of the national auto fleet were hybrids, we WOULD NOT HAVE TO IMPORT A SINGLE DROP OF OIL.


bigslick83bigslick83 - 9/28/2006 10:08:27 AM
+1 Boost
1970toy,
bigslick is the name of a powerfull starting poker hand(ace and king) in texas holdem.

and im sure that congress and the pres completely control gas prices, and thats why for years the pres has just sat by while people bitched and bitched about high gas prices.(true sarcasim)

really if you belive that its no wonder you buy into global warming, and anything else the news media tells you to.


1970toyotamarc1970toyotamarc - 9/28/2006 3:05:01 PM
+1 Boost
"and im sure that congress and the pres completely control gas prices, and thats why for years the pres has just sat by while people bitched and bitched about high gas prices.(true sarcasim)"

that's actually not sarcasm, it's the truth, at least from the executive office, which is run by a bunch of oil men and women. Of course they will let people piss and moan when Bush et al have nothing riding on it, but as soon as election season rolls around, prices go down. do some research into gas prices and presidential approval ratings, and the correltaion becomes all too obvious. wake up.


noraknorak - 9/29/2006 11:33:25 AM
+1 Boost
If there is excess supply maybe the price of a Prius will go down and then ordinary folks can afford one. It's pointless making a super fuel efficient car that saves the environment only affordable for Hollywood celebrities.
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