Toyota Canada unveiled this week the price of its RAV4 Prime. A vehicle eagerly awaited by the public, since it meets the needs of a majority of buyers who do not want to be understood in terms of power, versatility, luxury and fuel efficiency.
In short, a vehicle that offers four-wheel drive, 302 horsepower, and which, thanks to an 18.1 kWh battery, can travel 68 kilometers in 100% mode, before the hybrid mode comes into operation.
Undoubtedly, this vehicle is the star of the hour in the automotive industry, as evidenced by the many orders made by consumers, who will have to be patient to get their hands on their vehicle. By the end of the year, next year, or even two years from now? Who knows! One dealership we spoke to was only talking about the headache that this vehicle represented, knowing that it will have to disappoint many customers interested in its acquisition.
$ 44,990, a strategic price
It’s no coincidence that Toyota Canada has priced its RAV4 Prime SE at $ 44,990. In doing so, the product can thus be eligible for applicable government credits, which also explains why several vehicles such as the Hyundai Kona electric and the Tesla Model 3 also have a similar entry price.
In fact, the law states that a five-passenger vehicle, electrified or partially electrified, with an entry price below the $ 45,000 mark, can qualify for federal credits. Obviously, some vehicles are entitled to greater discounts than others, which the government determines on the size of the batteries. This explains, for example, why, by combining federal and provincial discounts, a Mitsubishi Outlander PHEV is only entitled to a $ 6,500 rebate, the latter climbing to $ 13,000 for a Chevrolet Bolt.
For 2021, Ford and Toyota are each launching a plug-in hybrid compact SUV. Ford arrives with theEscape PHEV as Toyota presents its RAV4 Prime. Two vehicles in direct competition, although Toyota has the advantage of four-wheel drive and more power. However, when it comes to electric range and fuel consumption, these two vehicles are practically face to face. Clearly, a slight advance in terms of electric autonomy on the side of Toyota, which displays 68 kilometers, against 61 at Ford, but a lower combined average fuel consumption of 0.4 L / 100 km, to the advantage of Ford. In the end, four thirty sous for a piastre.
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A story of batteries
Yet, because the RAV4 Prime’s battery size is 18.1 kWh, compared to 14.4 kWh on the Escape PHEV side, Toyota is entitled to an additional $ 6,500 in government credit, reducing the final price of its RAV4 vehicle at a level that defies any competition. This gigantic credit creates on the one hand an imbalance within the RAV4 range, since the RAV4 Prime SE (with applied credits) is practically at the same price as a RAV4 Hybrid LE, less equipped, without electric range, and handicapped by 100 horses.
Now, that also gives rise to unfair competition for Ford, which ultimately offers an Escape that is as environmentally efficient as the RAV4, using only different technology. Because with a battery of less than 16 kWh, the federal and provincial governments cut the applicable credits in half.
This situation must certainly infuriate the people of Ford, who would have every reason in the world to dispute this situation. And be sure that with the growing number of plug-in hybrid and electric vehicles that will land in the next few years, such injustices will only increase.
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As far as I’m concerned, however, I consider that a vehicle that is not 100% electric should not be able to qualify for the full discount. On the one hand, because many of the users of these vehicles rarely recharge them, yet benefiting from a large credit, but also because the environmental impact of a plug-in hybrid is undoubtedly greater than an all-electric one, whatever. Should the government therefore reduce to $ 6,500 the credit currently applicable to RAV4, but also to the Honda Clarity and the van Chrysler Pacifica? Personally, I would be in favor of such an adjustment.
Obviously, only the future will tell us if these credits will last, but in the meantime, know that the vast majority of Ford Escape PHEV and Toyota RAV4 Prime intended for the Canadian market will be found here in Quebec. Because La Belle Province is currently the only one to offer such big discounts, being far followed by British Columbia, which only offers $ 1,500 in credit (added to the federal $ 5,000), for an electrified vehicle.
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