Toyota won’t follow Tesla in slashing EV prices in Australia

Posted on July 8, 2024Comments Off on Toyota won’t follow Tesla in slashing EV prices in Australia

Toyota Australia says it still expects to sell around 1500 bZ4X electric SUVs this year, and won’t slash prices to boost sales as rivals like Tesla and Ford have done.

“No change in prices, I’ll let the others play in that market – good luck!” said Sean Hanley, Toyota Australia vice president for sales, marketing and franchise operations.

“We don’t have to, our aspirations for bZ4X are around 1500 [sales]. We believe we’ll sell around that number for the year still.

“We certainly have no intentions of dropping the price on that car.

“We don’t have any pressure on that car, it is what it is. It’s our entry into the EV market.

“We do believe it’ll play a role and a significant role in the future, but we’ve got a lot of learnings from our hybrid experience back in October 2001, we know it takes time.

“The benefit of a multi-pathway strategy, is we have time on our side I believe to settle that vehicle, establish its credentials in the market which it’s doing. And then, as time goes on, we’ll continue to grow our EV sales in natural sync with the market demand.”

Toyota had previously said in August 2023 it expected to deliver several thousand bZ4Xs in 2024, but earlier this year lowered its official target to just 1500 sales.

It started deliveries in February 2024, and Toyota has thus far has sold 555 examples – more than its Subaru Solterra twin (278 sales).

It’s averaging around 111 sales a month which means, at this rate, it could fall short of its target.

The bZ4X is priced at $66,000 before on-road costs in front-wheel drive guise and $74,900 before on-roads with all-wheel drive.

Toyota is currently offering the bZ4X not only for outright purchase, but also via a subscription-style full-service lease through Toyota Finance.

Days before the bZ4X’s local pricing was announced, Subaru slashed prices of the related Solterra by up to $8000. The all-wheel drive-only Solterra range opens at $69,990 before on-roads.

Ford slashed prices of its rival Mustang Mach-E in May by up to $8000, following cuts of up to $7000 announced before deliveries began last year.

The Tesla Model Y looms large over this segment, being not only Australia’s best-selling electric SUV but also the best-selling electric vehicle, period.

Tesla has cut Model Y prices three times since March 2024.

It now starts from $55,900 before on-road costs in base rear-wheel drive (RWD) guise – a $5000 saving on its last update, and a $9500 drop since the slightly refreshed SUV arrived in April.

MORE: Everything Toyota bZ4X