Here’s Why Certain Californians are Getting a Discount on Toyota’s RAV4
If you’re a California resident in the market for a hybrid crossover, you might just be in luck. Toyota Motors (NYSE:TM) is now discounting its all-electric RAV4 for customers in the Los Angeles and San Francisco regions from now through September 3.
According to Bloomberg, the Japanese car manufacturer is combatting the slow sale of its compact crossover by offering new low-cost lease and loan offers on the Rav4 which include the options of a “$299-a-month, three-year lease for the $49,800 light truck, or a 60-month, no-interest loan.”
With Los Angeles and San Francisco as Toyota’s main markets, the company initially expected to sell 2,600 RAV4 EVs by the end of 2014. That deadline is still far off, but so far, the automaker has only sold 709 units since launching the vehicle last September, and thus, Toyota is ready to offer some alluring discounts in order to better meet these targets.
Toyota is still the world’s biggest maker of hybrid autos, and the Toyota City, Japan-based car manfacturer has been very vocal in demonstrating its interest in partnering up with electric car superstar, Tesla Motors (NASDAQ:TSLA). The two automakers decided to team up back in 2010 to supply the RAV4 with a Tesla-powered battery pack and motor, while Toyota furthered that partnership by also making a $50 million investment in the Palo Alto, California-based company.
Toyota’s U.S. sales unit is in Torrance, California, and the automaker still commands the biggest market share in the Golden State. That’s why Bloomberg reports that its president, Akio Toyoda, is especially counting on the state to help it turn the RAV4′s losing streak around.
In addition, Toyota still needs to ensure it meets strict emissions rules with its rechargeable vehicles, and thus, the sale of crossover that goes about 100 miles per charge is even more crucial. The report maintains that Toyota will also launch a hydrogen-powered electric sedan in 2015 coupled with its already available plug-in Prius to help it meet such standards — but the RAV4 continues to be a focusing point for now.