Choice of hybrids vs ICE is dependent on price points
03-03-24, 06:31 AM
#1
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Choice of hybrids vs ICE is dependent on price points
I was interested in percent adoption of the electrified versions of different models, and used allocation sales data for the NX, RX, and TX for 2024. The NX is the least expensive, and the TX the most expensive base. The result was not really surprising, but interesting anyways.
It seems that above a certain price point, the increasingly expensive base, and the 3- row TX the most expensive.
The assumption is that this reticence is due to increasing total price (as you go from NX to RX to TX), and not due to the fact there is some demographic difference between the buyers.
Below is the data:
NX 49%
NX HEV 43%
NX PHEV 8%
RX 66%
RX HEV 29%
RX PHEV 5%
TX 86%
TX HEV 13%
TX PHEV 1%
It seems that above a certain price point, the increasingly expensive base, and the 3- row TX the most expensive.
The assumption is that this reticence is due to increasing total price (as you go from NX to RX to TX), and not due to the fact there is some demographic difference between the buyers.
Below is the data:
NX 49%
NX HEV 43%
NX PHEV 8%
RX 66%
RX HEV 29%
RX PHEV 5%
TX 86%
TX HEV 13%
TX PHEV 1%
Last edited by asj2024; 03-03-24 at 07:16 AM.
03-03-24, 07:14 AM
#3
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Anecdotally, I have read people who despise the electrified options and would never buy one, so there's that, but I can't imagine that is dependent on buying power.
Last edited by asj2024; 03-03-24 at 07:18 AM.
03-03-24, 07:23 AM
#4
Lexus Test Driver
Yeah, that was true for a bit, probably especially beginning of year, but the differences between the NX, RX, and TX are interesting, given that the TX is the most expensive and the NX the least.
Anecdotally, I have read people who despise the electrified options and would never buy one, so there's that, but I can't imagine that is dependent on buying power.
Anecdotally, I have read people who despise the electrified options and would never buy one, so there's that, but I can't imagine that is dependent on buying power.
03-03-24, 08:53 AM
#5
Lexus Fanatic
I was interested in percent adoption of the electrified versions of different models, and used allocation sales data for the NX, RX, and TX for 2024. The NX is the least expensive, and the TX the most expensive base. The result was not really surprising, but interesting anyways.
It seems that above a certain price point, the increasingly expensive base, and the 3- row TX the most expensive.
The assumption is that this reticence is due to increasing total price (as you go from NX to RX to TX), and not due to the fact there is some demographic difference between the buyers.
Below is the data:
NX 49%
NX HEV 43%
NX PHEV 8%
RX 66%
RX HEV 29%
RX PHEV 5%
TX 86%
TX HEV 13%
TX PHEV 1%
It seems that above a certain price point, the increasingly expensive base, and the 3- row TX the most expensive.
The assumption is that this reticence is due to increasing total price (as you go from NX to RX to TX), and not due to the fact there is some demographic difference between the buyers.
Below is the data:
NX 49%
NX HEV 43%
NX PHEV 8%
RX 66%
RX HEV 29%
RX PHEV 5%
TX 86%
TX HEV 13%
TX PHEV 1%
Anecdotally, I have read people who despise the electrified options and would never buy one, so there's that, but I can't imagine that is dependent on buying power
03-03-24, 09:06 AM
#6
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And I know the RX 450h+ is at MSRP or above most times (after being out for 6 months or so), although some dealerships in CA (the ones with tons of inventory) have marked them down. I've also seen markups of $8k or more lol
03-03-24, 09:11 AM
#7
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Thread Starter
The base prices of the NX, RX, and TX go from least expensive to most expensive, and so too do the HEV and PHEV versions of each.
In the case of the PHEV for example, the RX I believe is $10k more than the NX, and the TX is $7k or 8k more than the RX 450h+
If you look at the adoption rate of the PHEVs, they correlate well (inversely) with the price increase.
PHEV adoption is highest in NX at 8% (with $60k starting price), then it drops to 5% for the RX (with $70.5k starting price), and then only 1% for the TX, which starts at $78k.
Same relationship seems to hold for the HEV versions of each.
Saying that, one factor that might complicate this is the introduction date of each. The TX came in later, but am not sure, and the NX I believe includes new sales of 2023 versions, so the PHEV version of the NX has been out there longest.
In the case of the PHEV for example, the RX I believe is $10k more than the NX, and the TX is $7k or 8k more than the RX 450h+
If you look at the adoption rate of the PHEVs, they correlate well (inversely) with the price increase.
PHEV adoption is highest in NX at 8% (with $60k starting price), then it drops to 5% for the RX (with $70.5k starting price), and then only 1% for the TX, which starts at $78k.
Same relationship seems to hold for the HEV versions of each.
Saying that, one factor that might complicate this is the introduction date of each. The TX came in later, but am not sure, and the NX I believe includes new sales of 2023 versions, so the PHEV version of the NX has been out there longest.
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03-03-24, 09:15 AM
#8
Lexus Fanatic
The base prices of the NX, RX, and TX go from least expensive to most expensive, and so too do the HEV and PHEV versions of each.
In the case of the PHEV for example, the RX I believe is $10k more than the NX, and the TX is $7k or 8k more than the RX 450h+
If you look at the adoption rate of the PHEVs, they correlate well (inversely) with the price increase.
PHEV adoption is highest in NX at 8% (with $60k starting price), then it drops to 5% for the RX (with $70.5k starting price), and then only 1% for the TX, which starts at $78k.
Same relationship seems to hold for the HEV versions of each.
In the case of the PHEV for example, the RX I believe is $10k more than the NX, and the TX is $7k or 8k more than the RX 450h+
If you look at the adoption rate of the PHEVs, they correlate well (inversely) with the price increase.
PHEV adoption is highest in NX at 8% (with $60k starting price), then it drops to 5% for the RX (with $70.5k starting price), and then only 1% for the TX, which starts at $78k.
Same relationship seems to hold for the HEV versions of each.
I think I see what you are saying. Buyers are less willing to buy the PHEV models in the TX as the price is significantly much much higher. So they downsize to the RX?
03-03-24, 09:26 AM
#9
Lead Lap
I am considering a Porsche Cayenne S and there is an option to get a PHEV hybrid that only costs approximately $5k on top of the regular S but if you lease you get a $7,500 tax credit that more than covers the extra cost so I would get the PHEV, it is more efficient and performs a little better.
03-03-24, 09:32 AM
#10
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On the other hand, NX buyers are not as reluctant to splurge money to get the HEV/PHEV versions due to the total price being not so high in absolute terms.
I just realized though, that in the RX, the HEV version is very close in price to the ICE version (around $2k...$50k vs $52k), so why the BIG difference in adoption (66% vs 29%)? This might be an indication at least some people are still leery of hybrids, as the drivetrains are different.
Last edited by asj2024; 03-03-24 at 09:37 AM.
03-03-24, 09:39 AM
#11
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I am considering a Porsche Cayenne S and there is an option to get a PHEV hybrid that only costs approximately $5k on top of the regular S but if you lease you get a $7,500 tax credit that more than covers the extra cost so I would get the PHEV, it is more efficient and performs a little better.
Last edited by asj2024; 03-03-24 at 09:46 AM.
03-03-24, 10:08 AM
#12
Lexus Fanatic
I just realized though, that in the RX, the HEV version is very close in price to the ICE version (around $2k...$50k vs $52k), so why the BIG difference in adoption (66% vs 29%)? This might be an indication at least some people are still leery of hybrids, as the drivetrains are different.
Last edited by Toys4RJill; 03-03-24 at 10:14 AM.
03-03-24, 10:55 AM
#13
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03-03-24, 10:57 AM
#14
Lexus Fanatic
03-03-24, 05:08 PM
#15
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But you'd be surprised how many people are wondering about sticking in 87 even in the non hybrids given half the chance, maybe especially those who may be only leasing.