Toyota Motor Corporation
) has announced the launch of the electric version of its RAV4 SUV
at the Electrical vehicle Symposium in Los Angeles. The vehicle
will be featuring batteries and electric powertrain from
Tesla Motors Inc.
The Japanese automobile major has set the base price of the
all-new RAV4 EV at $49,800, which is more than double the starting
price of the gasoline version of RAV4 SUV. The initial price of
2012 RAV4 2.5 liter gasoline engine is $22,650.
The sale of RAV4 EV will begin in the summer of 2012 in four
major markets in California, including Sacramento, San Francisco
Bay Area, Los Angeles/Orange County and San Diego. RAV4 EV will be
manufactured at Toyota's Woodstock, Ontario plant. Moreover, Toyota
expects to sell around 2,600 vehicles within the next three
The RAV4 EV, with driving performance, cargo capacity and
comfort level, will be traveling 100 miles per charge. It needs to
be charged for six hours on a 240 volt charger. Toyota will provide
battery warranty for 8 years or 100,000 miles drive.
The vehicle comes with two different drive modes, Sport and
Normal. With the Sport mode, the car can travel 0.6 mph in 7
seconds with maximum speed of 100 mph. However, in Normal mode, the
vehicle reaches 0.6 mph in 8.6 seconds, with maximum speed of 85
Further, the RAV4 EV will enlarge the customer's preference
bundle for electric vehicles. Earlier, notable electric small
vehicles available in the market were
Nissan Motor Co
Ford Motor Co
) Focus Electric and sports cars of Tesla Motors. These vehicles
have been designed for customers, who give importance to
environment and appreciate performance. However, one of the draw
back of the electrical vehicles is the limitation of charging
infrastructure. RAV4 EV is also priced higher than the other
electrical cars in the market.
According to Bloomberg, during 2012 to 2014, Toyota,
General Motors Company
Honda Motors Co.
), Nissan and Chrysler are expected to be under extreme pressure to
deliver around 60,000 plug-in hybrid and all-electric vehicles to
meet California's zero emission rule. Toyota, who possesses the
largest share, needs to supply the most vehicles.
Toyota Motor has played an important role in global market for
fuel efficient and environment friendly vehicles. However, the
company's profit declined in the last quarter due to lower
production and sales volumes.
Toyota currently retains a Zacks #2 Rank, which implies a
short-term Buy rating. We have a long-term Neutral recommendation
on the stock.
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