Prius sales yet to catch fire in China

Posted by: Ian Rowley on November 5, 2007

Car sales, if not profit margins, in China are flying this year and Toyota, which is on track to smash an annual target of 430,000 units, is among the biggest beneficiaries. Just don’t expect too many Prius hybrids on the streets of Shanghai.

Despite much fanfare surrounding the launch of the Prius in December 2005, the locally made gas sippers are yet to catch the Chinese public’s imagination. Speaking at a recent Toyota event at the Imperial Hotel in Tokyo, Toyota executive vice president Takeshi Uchiyamada admitted sales are falling along way short of expectations. Uchiyamada said that Toyota only sold 2,000 Prius last year in China—half the original plan—and that sales closer to 500 were likely this year.

It’s not hard to spot the problem. Thanks to high duties on imported parts used in the assembly of the Chinese Prius at a plant in the north eastern city of Changchun, the hybrids went on sale at $36,000. That’s about $15,000 higher than the equivalent price in Japan or the U.S. and enough to put off even the greenest of Chinese auto buyers from ordering a new Prius.

Reader Comments

mark

November 11, 2007 5:40 PM

Toyota has set its foot on the Chinese car market through Prius model. China is the emerging market, the population of the rich is increasing and eager to acquire more luxurious goods from Western. The important strategies of marketing are competitive price, design, and features. Chinese people will open their wallets to express their tastes with their neighbors.

ACDC

August 8, 2008 11:21 PM

The Chinese do not yet care, period. This kind of sale takes real marketing, thought leadership, and time. Chinese make have meticulous homes, but streets full of dirt. The collective good is not so easy in such a large population and will take a generation change and/or a government/leadership change. It will come in time, but I am not not if it will come in time.

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Bloomberg Businessweek’s team of Asia reporters brings you the latest insights on business, politics, technology and culture from some of the world’s biggest and fastest-growing economies.

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