Toyota’s prime-time promotion for its plug-in hybrid lineup has come to an end, replaced by a new marketing strategy that blurs the lines between its own models and those of rival manufacturers.
The automobile manufacturer announced plans to debut this innovation starting with the 2025 model year. Because it replaces the RAV4 Prime and Prius Prime, Toyota is set to introduce the 2025 Toyota RAV4 Plug-In Hybrid and 2025 Toyota Prius Plug-In Hybrid, both featuring updated pricing, specifications, and details, with most elements largely carried over from their predecessors.
While drawing inspiration from Toyota’s approach, this initiative aims not to drastically revamp the RAV4 Prime or its standard plug-in hybrid offerings, but rather to fine-tune and optimize their performance.
“To harmonize its naming convention with industry standards, Toyota’s RAV4 Plug-in Hybrid Electric Vehicle has been rebranded to align with industry norms,” said Mike Tripp, the automaker’s group vice president for marketing in North America, in an interview with Green Car Reports.
2021 Toyota RAV4 Prime XSE
By eliminating its brand name, Toyota aims to boost appeal among potential customers. As shoppers are faced with numerous powertrain options today, we’re shifting away from a model identity and introducing the PHEV trade conference to facilitate customers’ easier selection among the electrified powertrain choices within RAV4 and all models featuring multiple electrified powertrains.
Without Prime’s halo effect, do Toyota’s plug-in hybrids still possess a premium aura?
Toyota’s decision to rebrand its plug-in hybrids as “Prime” initially aimed to differentiate these models from other PHEVs on the market, but this move now appears to be an about-face.
Compared to other plug-in hybrid electric vehicles (PHEVs) available at the time, its prime features stand out. Toyota introduced the Prius Prime in 2016 as a 2017 model. The inaugural Prius Prime, one of the pioneering plug-in vehicles, featured an innovative heat pump technology, while the current Toyota RAV4 Prime boasts an impressive 42-mile electric range and seamlessly transforms into a fuel-efficient 38-mpg hybrid, delivering a combined output of 302 horsepower. During our inaugural ride in the Toyota RAV4 Prime, we were impressed by its potent performance, boasting sports-car-like quickness and commendable all-electric traction capabilities, making it an exemplary representation of a plug-in hybrid.
2025 Toyota Camry
Toyota sidestepped inquiries from GCR regarding whether its novel marketing approach is aimed at boosting overall sales volume, improving affordability, targeting a broader customer base or geographic regions – a strategy it has successfully employed with its hybrid models over the years? Toyota is leading the charge in hybrid technology, offering eco-friendly options across nearly its entire range; come 2025, the Camry will take the all-hybrid route, joining forces with the Sienna and Crown families.
The automaker has been focusing on developing both traditional models and hybrids in recent times. As part of a tone-deaf “Electrified Diversified” marketing campaign in 2023, Toyota rolled out a confusing array of battery, hybrid, plug-in, and fuel-cell electric vehicles, leaving consumers perplexed over the distinctions between totally electrical models, which some thought were plug-in hybrids, while others believed they were battery EVs.
The top 20% of Toyota Prius hybrid cars are being purchased at a higher cost due to their customization features.
Currently, the Toyota lineup is limited to just the RAV4 and Prius plug-in hybrid models. Across model year 2023, Toyota purchased approximately 57 percent of its RAV4 models in non-hybrid form. The Toyota RAV4 Hybrid accounted for a significant 37% of total RAV4 sales, with the RAV4 Prime making up the remaining 6%. In its 2023 model year, Toyota saw a significant shift in Prius sales, with an astonishing 79% of units sold as hybrids, while the plug-in Prius Prime accounted for a notable 21% share of hybrid sales for this iconic brand.
2023 Toyota Prius Prime
While Toyota’s RAV4 has gained significant traction as a top-selling hybrid model, the Prius remains its more eco-friendly flagship. In 2023, the RAV4 Prime outpaced its Prius counterpart with 26,073 units sold compared to just 7,557 Prius Prime sales.
Toyota appears committed to its plug-in hybrid strategy, which aligns well with California’s regulatory framework as dictated by the California Air Resources Board (CARB). Given its reputation as a pioneer in environmental sustainability and eco-friendly practices, it’s hardly surprising that California ranks at the top among states for plug-in hybrid sales. Behind the Golden State, Toyota reveals that New York, Massachusetts, Colorado, Oregon, New Jersey, Maryland, Connecticut, Washington, and other regions consistently rank high in RAV4 Prime sales figures. Similarly, Colorado, Connecticut, Maine, Maryland, Massachusetts, New York, Oregon, Rhode Island, and Vermont also top the list for Prius Prime sales, based on gross sales data.
The majority of these states adhere to CARB guidelines and impending Super Ultra Clean Automobiles II regulations, which will specifically encourage the adoption of extended-range plug-in hybrid electric vehicles (PHEVs). Toyota is willing to extend the range of its plug-in hybrid offering beyond 120 miles in certain markets. While preparations are underway to launch these robust plug-in hybrid electric vehicles (PHEVs) in the United States, it is unlikely that they will be marketed under the “Prime” brand name.
