America Is Changing In More Ways Than One: Toyota Prius Sales Are At A Five-Year Low
#1
Pole Position
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America Is Changing In More Ways Than One: Toyota Prius Sales Are At A Five-Year Low
America Is Changing In More Ways Than One: Toyota Prius Sales Are At A Five-Year Low
I'd say its due to a combination of horrible styling and cheap gas.It’s an all-new version of a car that generally finds 140,000 U.S. buyers per year. But the Toyota Prius is quickly fading from the American mainstream.
There’s no doubt that hybrids, in a general sense, are struggling. Combined sales of hybrids and plug-in hybrids are down 6 percent in the United States this year, according to HybridCars.com.
But the Toyota Prius — the all-new, fourth-generation version of the sector’s progenitor — is fading at double speed. Despite its newness and its vast objective improvements, Prius sales are down 12 percent this year.
And October was way, way, way worse than that. Much worse.
Year-over-year, Prius sales in October tumbled 44 percent, undoubtedly hindered by a recall announced mid-month. Only 5,421 copies of the Toyota Prius were sold in the United States in October 2016. That was the lowest October figure for the Prius since 2003, a year before George W. Bush was elected the second time.
October 2016 represented the lowest-volume month for the Prius since June 2011, more than a year before Barack Obama was elected a second time, when the Tōhoku earthquake and subsequent tsunami wreaked havoc on supply of Japan-built cars.
It might get worse in November. The recall announced earlier in October, related to the possibility of an inoperative parking brake, transitioned into a stop-sale notice in the final days of October.
The level of competition certainly does the Prius no favors when examining the car’s performance in a historical context. In 2007, when Prius sales peaked, there was not a larger Prius and a smaller Prius, nor was there a new plug-in Prius waiting just around the corner. Indeed, plug-ins and pure electrics weren’t stealing 30 percent of the overall hybrid/electric market as they are now, either.
Times have changed. Buyers interested in green cars now have more options.
Fuel prices have changed, as well. In mid-2007, American car buyers were paying more than $4.00/gallon or regular fuel, roughly half that today. For the new Prius, the changing American automotive landscape is likewise all too apparent. Not only are there more competitors stealing the Prius’s old market share. Not only is it difficult for any vehicle in this category to make headway when fuel prices are so low. But the Prius is also a car in a market that’s now filling its belly on SUVs and crossovers. In October, Americans purchased and leased 60,000 more utility vehicles than cars.
Unfortunately for Toyota, the core Prius’s decline wasn’t even the worst in the Prius family in October. While resulting in far less lost volume, the aged Toyota Prius V wagon plunged 45 percent in October 2016; the subcompact Prius C slid 54 percent. Nor were the significant declines among Toyota hybrids connected only to the Prius family. HybridCars.com says Camry Hybrid sales slid 29 percent compared with October 2015, the Avalon Hybrid was down 32 percent, Highlander Hybrid sales slid 5 percent, the Lexus ES300h fell 61 percent, and the Lexus CT200h tumbled 48 percent.
The Toyota RAV4 Hybrid has become an important part of the increasingly popular RAV4 lineup, however, and Lexus crossover hybrid volume is on the rise, as well. And of course, Toyota light truck volume is soaring. Last month was the best-ever October for Toyota light truck sales, and it would likely have been better if supply wasn’t an issue.
But the Prius, the hybrid that got the green ball rolling at Toyota, is increasingly less consequential in Toyota showrooms. That’s true whether we’re discussing a month with or without quality issues.
A decade ago, the Prius accounted for 7 percent of the new vehicles sold by Toyota Motor Sales, USA, Inc. That figure is down to 4 percent this year; just 3 percent in October.
So, can Toyota interest you in a Prius Prime?
#4
It has more to do with gas prices, the improvement of fuel efficiency by non-hybrids and consumer demands shifting back to crossovers, than with the Prius styling.
It's kind of a shame, as the dynamics are actually quite good with the new TNGA platform. I wouldn't even use the term dynamics with any of the previous generations.
It's kind of a shame, as the dynamics are actually quite good with the new TNGA platform. I wouldn't even use the term dynamics with any of the previous generations.
#5
Lexus Fanatic
These articles are always so silly. The Prius is not doing well because buyers are noticing that there are so many other alternatives that the same size or close to the same size that get almost as much MPG yet the same performance for less. Case in point, a 1.8 Toyota Corolla has almost the same performance, is almost the same size, and gets 3/4 of the MPG for so much more less. This is the problem with the Prius, if it were cheaper, it would sell better. $30K or more for a car that has the same performance and a little less more MPG is not going to fly when their are similar cars that are a better alternative.
It would be a entirely different story if the Prius offer a lot more performance than it currently does.
It would be a entirely different story if the Prius offer a lot more performance than it currently does.
#6
These articles are always so silly. The Prius is not doing well because buyers are noticing that there are so many other alternatives that the same size or close to the same size that get almost as much MPG yet the same performance for less. Case in point, a 1.8 Toyota Corolla has almost the same performance, is almost the same size, and gets 3/4 of the MPG for so much more less. This is the problem with the Prius, if it were cheaper, it would sell better. $30K or more for a car that has the same performance and a little less more MPG is not going to fly when their are similar cars that are a better alternative.
It would be a entirely different story if the Prius offer a lot more performance than it currently does.
It would be a entirely different story if the Prius offer a lot more performance than it currently does.
#7
Lexus Fanatic
Your evidence for the proof does make sense (Corolla sales are up and lots of competition), but the article is far from being silly. Buyers have more options. I see almost as many of the newer 2016 Volt as I do the new Prius. Yes pricing is higher, so that does affect certain buyers, but Americans are more likely to be polarized with styling, since Prius is doing fine in Japan, where the cultural tastes are quite different.
Last edited by Toys4RJill; 11-09-16 at 01:25 PM.
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#8
Lexus Champion
I appreciate that you can see that my proof makes sense. Thanks. Perhaps Silly was the wrong word to use. If the Prius could offer everything is does now, but is also had for arguments sake 300hp level performance in a small sedan with the same MPG rating, then the car would worth the cost it has over similar competition. My biggest gripe with my past CT hybrid was that I was paying such a premium for the same or worse vehicle performance than a similar Toyota with the 1.8 such as a Matrix or Corolla.
You really cannot blame the price premium of the Prius for lower sales. The Prius has always had a price premium, yet it has sold better in the past.
Neither can the polarizing styling of this current generation be blamed. Every generation of Prius has always looked different -- dare I say "ugly" (remember that reaction to styling is very personal) -- yet they have sold better in the past.
No, the reasons for the reduction in sales are explained in the article:
- Fuel prices are lower, dropping from $4/gallon to about half that today.
- There are more competitors now. For a number of years, the choice of hybrid vehicles came from either Toyota (Prius) or Honda (Insight, which was hardly real competition). Now, Ford is in the game, Hyundai and Kia are in, VW had a Jetta Hybrid.
- American drivers are shifting to SUVs and crossovers. As the article explains, the RAV4 Hybrid is doing well, as are the Lexus crossover hybrids. Highlander Hybrid, while selling less, is only down 5% and not the double-digit drops of the hybrid cars; perhaps the Highlander Hybrid is too large.
Times have changed. Buyers interested in green cars now have more options.
Fuel prices have changed, as well. In mid-2007, American car buyers were paying more than $4.00/gallon or regular fuel, roughly half that today. For the new Prius, the changing American automotive landscape is likewise all too apparent. Not only are there more competitors stealing the Prius’s old market share. Not only is it difficult for any vehicle in this category to make headway when fuel prices are so low. But the Prius is also a car in a market that’s now filling its belly on SUVs and crossovers. In October, Americans purchased and leased 60,000 more utility vehicles than cars.
...
The Toyota RAV4 Hybrid has become an important part of the increasingly popular RAV4 lineup, however, and Lexus crossover hybrid volume is on the rise, as well. And of course, Toyota light truck volume is soaring. Last month was the best-ever October for Toyota light truck sales, and it would likely have been better if supply wasn’t an issue.
Fuel prices have changed, as well. In mid-2007, American car buyers were paying more than $4.00/gallon or regular fuel, roughly half that today. For the new Prius, the changing American automotive landscape is likewise all too apparent. Not only are there more competitors stealing the Prius’s old market share. Not only is it difficult for any vehicle in this category to make headway when fuel prices are so low. But the Prius is also a car in a market that’s now filling its belly on SUVs and crossovers. In October, Americans purchased and leased 60,000 more utility vehicles than cars.
...
The Toyota RAV4 Hybrid has become an important part of the increasingly popular RAV4 lineup, however, and Lexus crossover hybrid volume is on the rise, as well. And of course, Toyota light truck volume is soaring. Last month was the best-ever October for Toyota light truck sales, and it would likely have been better if supply wasn’t an issue.
It has more to do with gas prices, the improvement of fuel efficiency by non-hybrids and consumer demands shifting back to crossovers, than with the Prius styling.
It's kind of a shame, as the dynamics are actually quite good with the new TNGA platform. I wouldn't even use the term dynamics with any of the previous generations.
It's kind of a shame, as the dynamics are actually quite good with the new TNGA platform. I wouldn't even use the term dynamics with any of the previous generations.
#10
Lexus Champion
No, the reasons for the reduction in sales are explained in the article:
- Fuel prices are lower, dropping from $4/gallon to about half that today.
- There are more competitors now. For a number of years, the choice of hybrid vehicles came from either Toyota (Prius) or Honda (Insight, which was hardly real competition). Now, Ford is in the game, Hyundai and Kia are in, VW had a Jetta Hybrid.
- American drivers are shifting to SUVs and crossovers (gas and hybrid version -- again, because gas is cheap). As the article explains, the RAV4 Hybrid is doing well, as are the Lexus crossover hybrids. Highlander Hybrid, while selling less, is only down 5% and not the double-digit drops of the hybrid cars; perhaps the Highlander Hybrid is too large.
exactly right
#12
Lexus Champion
I saw quite a few Prii in Seattle when I was there this summer, of all generations, including a fair number of this latest generation. As I said, the reaction to a car's styling is very personal -- you may not like it but there are others who do not mind it.
#13
Yeah, some buyers don't mind it but if you remember the article about how well liked the bizarre styling is in Japan, it isn't a farfetched idea that the styling isn't as appealing to the American market as the previous cars were, and that is a detriment to its appeal. I've seen quite a few new Volts (that look like Hondas), and I even think that new Ioniq might do well, but obviously, the market for these hybrids has cratered as of late.
Don't forget, the Prius doesn't have the "IT" factor it used to have a decade ago when Toyota dealers couldn't keep them in stock because of the carpool stickers (at least here in CA)...a lot of those buyers are now in Teslas.
Last edited by TRDRAV4; 11-09-16 at 09:07 PM.
#14
Lexus Champion
The new prius looks offensive and with lower gas prices than a few years ago, I'm not surprised about its sales decline. Newer cars are also getting better fuel economy and many offer that "fun to drive" factor that I just don't see in the prius. I think that's why Toyota tried hard to advertise it as a fun to drive car when the newest generation first came out.
#15
Lexus Test Driver
People are not dumb. If a car looks over the top ugly, it's going to be judged. The Prius is over the top ugly and is being judged. Toyota needs to save face and change the styling immediately.