- Toyota finally launches mass market with battery electric vehicle –bZ4X– just as it could cause the phasing out of federal tax credits on EVs.
- Toyota is reaching the limit of 200,000 cars thanks to large sales of its plug-in petrol-electric hybrids. Prius Prime and RAV4 Prime.
- If you are interested in RAV4 Prime or bZ4X, you will still be able to get a full $ 7,500 loan by October of this year.
Toyota has long done a great job about Name Prius which means “go earlier”. However, when it comes to electric cars, Toyota is more accurate in third place – at least in terms of achieving the full limit of the federal tax credit for EVs and connected gasoline-electric hybrids (PHEV).
At the end of 2021, 183,000 EV and PHEV Toyota received the right to a federal tax credit, and another 8,421 cars were added to the book at the end of the first quarter of 2022, according to Automotive news. At this rate, Toyota expects to end these full loans, which are limited to 200,000 for each automaker, before starting a gradual reduction in contributions over the year – sometime before the summer. Once Toyota reaches that mark, its newest buyer EV and PHEV will be able to get a tax credit of half the maximum amount for six months and then a tax credit for a quarter of the original amount for another six months. After that, Toyota EV and PHEV consumers will have to purchase these vehicles without tax breaks from the federal government.
“We’re planning this because Tesla isn’t working and General Motors isn’t working, and we’ll probably be out in the second quarter,” said Bob Carter, executive vice president of sales for Toyota Motor North America. Automotive news. “When you go out, you’re going into a downturn phase, so we’re planning this.”
On the one hand, achieving this milestone is a positive moment for Toyota. After all, this means that the brand has managed to sell 200,000 fully and partially electric cars. On the other hand, it’s a bad time for Toyota to look down the barrel of phasing out the tax credit.
The brand is currently introducing in the United States its first specialized battery-powered electric model (former EVs that Toyota sold in the 21st century were limited in some states), the bZ4X. Thus, only a small portion of the original buyers will be able to take advantage of the full $ 7,500 loan to which the car is entitled.
Nissan, which is going to launch Ariya electric SUVis in a similar boat thanks to more than a decade Sale of leaves. Carter said Automotive news what Toyota is considering lowering the initial EV price in response to the expiration of federal EV tax credits.
If Toyota does reach 200,000 in the second quarter (before July 1), then all sales by the end of October this year will still be eligible for full credit. However, in November the credit will drop to $ 3,750 and then to $ 1,875 on April 1, 2023, meaning Toyota will potentially reach the ceiling of the federal tax credit on EVs by October 2023.
Despite only formally entering the EV space, the popular Toyota Prius and RAV4 PHEV models have managed to crash into the brand’s threshold of 200,000 sales of electric and partially electric vehicles. As a result of the smaller batteries of these models, the 2012-2015 Prius received a $ 2,500 tax credit, while 2017 and the new Prius PHEV received a $ 4,052 credit. Meanwhile, the RAV4 is bringing home a full $ 7,500 … for now.
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