The world's largest seller of hybrid automobiles, Toyota, is reducing the price of its Prius Plug-in hybrid, which will now start from $29,990.
Toyota has reduced the price of the 2014 Prius Plug-in Hybrid, the base model, by $2,010, which makes the starting price $29,990 (not including DPH). The price reduction for the Prius Plug-in Hybrid, however, is "not accompanied by any reduction in vehicle content."
The Prius Plug-in Advanced sees a price cut of $4,620 and will now sport a price tag of $35,715 (excluding DPH).
"It just got a little easier for drivers to maximize their fuel savings and be environmentally responsible. Toyota's most advanced technology passenger car, the Prius Plug-in, will be available to customers at a substantially reduced price beginning with the 2014 model year," per Toyota's press release.
The Prius Plug-in joins the growing list of electric cars that are getting price reductions. By shaving off $2,010 from the base price of the popular Prius Plug-in, Toyota now has the distinction of owning the first plug-in hybrid electric vehicle (PHEV) in the U.S. market that has a starting price which is below $30,000.
Toyota is apparently decreasing the price of the base model in a bid to give a fillip to the sales of its Prius Plug-in, which have been slow due to the resale value of electric and plug-in electric hybrids being low.
"A price reduction on the Prius Plug-In will help to raise the residual values on that vehicle and push it closer to the top of its segment," notes Eric Ibara, director of residual values at automotive pricing and information site Kelley Blue Book.
In August this year, General Motors (GM) reduced the price of its Chevrolet Volt PHEV by $5,000, lowering the price of the base model to $34,185. The move was prompted by Ford, Honda and Nissan's move to reduce the price of their all-electric vehicles (EV) - the Fit EV, Focus Electric and the Leaf, respectively, earlier this year.
While the price cut for the Prius Plug-in is not a dramatic one when compared to rivals, it remains to be seen if this move by Toyota will help push the sales of the car and woo customers in the U.S.