Photo: Lexus
There is still room for the hybrid powertrain in today's automotive scenery, but it looks like that space is tightening with every passing year.
As far as the U.S. is concerned, this segment of the market has constantly been shrinking since 2012, with sales now accounting for almost two percent of the total number. Compared to the hybrid's glory days, that's nearly half.
You say hybrid, you say Toyota, and the Prius has been a prime example (excuse the pun) of how things have deteriorated for this powertrain solution. Sales of the Japanese eco-warrior have dwindled by more than 50 percent since their peak in 2012, and there's very little reason to think anything is going to change.
Lexus, Toyota premium division, is another brand that has built its image around hybrid vehicles, so it's naturally suffering alongside its parent right now. So instead of keeping its tail up and insisting everything was peachy, Lexus decided to try and do something about it.
It turns out that "something" was to lose money because the Japanese brand's answer was to cut the prices for its models. With fuel prices in the U.S. sitting low, a heavier, more complicated and, above all, more expensive vehicle didn't stand a chance against its honest gasoline-powered counterpart, so Lexus had to bring out the scissors.
But it didn't stop there. Instead of simply asking less money for its vehicles, the Japanese carmaker also made more features standard, making the gap between hybrid and non-hybrid models even smaller.
For instance, the 2018 Lexus RX 450hL that was introduced at the Chicago auto show earlier this month only had a $3,000 premium over the RS 350L. However, the hybrid also came with all-wheel-drive as standard, which means the effective difference was only $1,550.
Sadly for Lexus, this is the best it can hope for: luring people who otherwise would have bought a plain gasoline model. Those who actually care about emissions and eco-ness already have much better options on the market, the kind of which Lexus doesn't offer at all: plug-in hybrids or even full electric vehicles.
You say hybrid, you say Toyota, and the Prius has been a prime example (excuse the pun) of how things have deteriorated for this powertrain solution. Sales of the Japanese eco-warrior have dwindled by more than 50 percent since their peak in 2012, and there's very little reason to think anything is going to change.
Lexus, Toyota premium division, is another brand that has built its image around hybrid vehicles, so it's naturally suffering alongside its parent right now. So instead of keeping its tail up and insisting everything was peachy, Lexus decided to try and do something about it.
It turns out that "something" was to lose money because the Japanese brand's answer was to cut the prices for its models. With fuel prices in the U.S. sitting low, a heavier, more complicated and, above all, more expensive vehicle didn't stand a chance against its honest gasoline-powered counterpart, so Lexus had to bring out the scissors.
But it didn't stop there. Instead of simply asking less money for its vehicles, the Japanese carmaker also made more features standard, making the gap between hybrid and non-hybrid models even smaller.
For instance, the 2018 Lexus RX 450hL that was introduced at the Chicago auto show earlier this month only had a $3,000 premium over the RS 350L. However, the hybrid also came with all-wheel-drive as standard, which means the effective difference was only $1,550.
Sadly for Lexus, this is the best it can hope for: luring people who otherwise would have bought a plain gasoline model. Those who actually care about emissions and eco-ness already have much better options on the market, the kind of which Lexus doesn't offer at all: plug-in hybrids or even full electric vehicles.
Google News