Mitsubishi says cheaper PHEV SUVs coming to compete with Toyota RAV4 Hybrid

The biggest reason PHEV vehicles aren’t as popular as their conventional hybrid competitors is price, says Mitsubishi, as the Japanese giant flags cheaper plug-in models to take on cars like the Toyota RAV4 Hybrid.

Speaking at the Japanese launch of the Eclipse Cross PHEV, which will land in Australia in the second half of 2021, Mitsubishi’s product planning chief, Minoru Uehara, told media that the take-up of plug-in models like the Outlander PHEV was being hampered by pricing, as well as a lack of incentives.

“The biggest reason is the cost and pricing of the PHEV. We believe the performance is viable to the pricing, but actually with the price gap between hybrid and plug-in hybrid, the PHEV is priced higher than the hybrid system,” he said.

“That’s the biggest reason for why the HEV is so popular, and the PHEV is not so popular right now. I believe we need to make a maximum effort to educate the benefits of the PHEV in the markets.”

Vehicles like the Toyota RAV4 Hybrid have been a runaway success in Australia, with months-long waiting lists and sky-high demand – so much so, that the electrified RAV4 alone outsold Mitsubishi’s entire line-up in August this year.

At least part of the problem, says Mitsubishi, is price, with the cheapest plug-in Outlander priced at $47,390, compared to $36,790 for the most affordable RAV4 Hybrid.

While he wouldn’t be drawn on specifics, Mitsubishi’s product guru said he would be working to reduce the cost of his brand’s PHEV technology, not just for the Eclipse Cross PHEV, but for the next-gen Outlander, expected in 2021 or 2022.

“I cannot comment on future pricing, but we need to try to reduce the cost without diluting the performance,” he said. “That’s our big challenge, as a vehicle manufacturer.”