Prius sales tank in May, Toyota blames battery supply
This stat might seem confusing given the fact that fuel economy is king at dealerships right now, but Toyota just reported that Prius sales were down almost 40% in May compared to the same period in 2007. While overall 2008 sales of the hybrid postercar are up a little over 2%, this just doesn't seem possible. Just over 15,000 Priuses were sold in May '08 compared to more than 24,000 in 2007. Overall sales in 2008 have slightly surpassed '07 sales through May, with a total of 79,675 units moved this year compared to 76,747 last year, but it seems like something is amiss. Then you read about a battery supply problem that's affected production of the Prius and it all starts to make sense. AutoblogGreen reports that Toyota's VP of Communications, Irv Miller, said batteries are in short supply worldwide and this is what affected Prius production and its sales last month in the U.S. He added that last year's figures were slightly inflated due to, wait for it, incentives being used to move slow-selling hybrids. Ah, the good old days. While there is still an obvious demand for the Prius, our brothers at ABG surmise we'll be on a one-day supply of Priuses until the new one comes out in January. Can you say mark up?
[Source: AutoblogGreen and Toyota]
Reader Comments (Page 1 of 3)
Steve 4:43PM (6/04/2008)
Put the words: "Toyota Prius Dealership" in google and press enter.
Then at the top click on "news". You will see that the nation has a 7 week waiting list for the Prius. You cant find them anywhere.
And as far as incentives go for last year the most it ever got was 1000 dollars off MSRP.
Reply
Serge K. 4:52PM (6/04/2008)
Mr. Colbert, is that you?
The nation is enlightened by the wisdom of your words...
eakius 4:54PM (6/04/2008)
@ steve. damn, i thought it was people were starting to realize civics/focus/corollas and deisel jettas were just as good on gas but 10x more practial. and in many cases, much more stylish.
Reply
MUSASHI66 5:42PM (6/04/2008)
I hate the Prius, but how is it not practical?
jb 6:25PM (6/04/2008)
yeah please, do tell how a Corolla or a Civic is more practical than a Prius? Cheaper, certainly, but not as economical on gas, and certainly not as practical. The Prius hatchback actually makes it muce more practical than these two...
TriShield 4:55PM (6/04/2008)
Small cars like Toyota's own Yaris may also be conquesting potential Prius intenders who don't want to spend that much or wait that long for a new, fuel-sipping car.
Reply
Devon 6:55PM (6/04/2008)
I work at one of the Top 5 Toyota dealerships in the country and Yaris's are just as scarce as Prius's. Just yesterday the 3 we had, I put $1,000 market adjustments in.
Really annoying though, we take delivery of Prius's and they are all already sold.
ronnie schreiber 4:57PM (6/04/2008)
If it was GM instead of Toyota, they'd be accused of deliberately holding product back from the market so dealers can make a higher profit per vehicle.
Reply
MKIV 7:14PM (6/04/2008)
Your point is?
Jim 8:10AM (6/05/2008)
I agree with you 100%. Let's see if the media will now pick on Toyota for building large SUV's since GM announced recently, they will quit building them.
waiownsyou 4:58PM (6/04/2008)
Oh please. The reason the sales are down is because consumers are doing research on the Prius, and rumors are everywhere that a new Prius with better gas mileage is right around the corner.
Battery my ass.
Reply
kory kickul 6:19PM (6/04/2008)
I am a salesperson at a toyota dealership and I can tell you that it is a battery supply problem.......
it is not a demand problem that is for sure......
Bryan 7:27PM (6/04/2008)
Yeah...seriously, its not a demand issue, trust me. Not one dealer within 3hours of where i work will discount a prius. Some are marking them up atleast $1,000 over MSRP. And everyone is giving out 3-6month till you get one.
steve 12:06AM (6/05/2008)
i put a deposit down a week ago and the car is in next week or the week after. The new design is not due until 2010, 2009 is just a slight refresh; so that's not really a factor in reduced sales. It's a supply issue, real or not, and firm demand that is keeping them scarce despite less volume.
Brian 5:03PM (6/04/2008)
Wai- wake me up when you're not an idiot. We are sold out of Prii here at my store right through any potential 2008 allocations. (50+) We can't get them because of the interrupted battery supply. Panasonic & Toyota are -or were- in a bit of a spat, shall we say.
Reply
2004m3driver 5:17PM (6/04/2008)
Wai sure didn't owns you.
h8rain 5:04PM (6/04/2008)
"He added that last year's figures were slightly inflated due to, wait for it, incentives being used to move slow-selling hybrids."
Props to the guy for actually admitting that.
Reply
bamboo 5:10PM (6/04/2008)
I am moving out of the DC metro area to N.C., and will have to buy a new car as soon as I get there, so I called a Toyota dealer to check on availability for Corollas and Prius. They have stock on Corollas, but absolutly no Prius at either of the major dealers near by. The sales manager I spoke with said they are getting calls from other dealers as far away as Iowa offering $2-3,000 over sticker to snatch this dealers stock. They guy said they would be happy to have sent them at that profit, but they can't get their hands on any either. If I wanted one it would be at least a 4-6 week waiting list.
I am probably going to go with a short term lease, like 24 months, on a car like a corolla so by the time it is up the new Civic, Prius, and Hyundai (and who knows who else) will have their new models out by then.
Reply
Geeky1 5:23PM (6/04/2008)
Why not just get a Civic hybrid?
bamboo 5:46PM (6/04/2008)
I looked at all the local honda dealers here, but there are only 3 available (out of like 7 dealers). And I think the civic is just as ugly as the Prius.
Plus, they are supposed to be unveiling a much better new honda hybrid at the end of the year.
The new models from all companies are going to sell so fast there will be months waiting time and price gouging, especially if price of gas goes above $5+ like many news agencies and investment firms are predicting. Hopefully in 24 months when a short term lease would be up, there would be some stock. Crossing my fingers on that one though.