Toyota Launches RAV4 EV - Analyst Blog
May 10 2012 - 1:23PM
Zacks
Toyota Motor Corporation (TM) 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. (TSLA).
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
years.
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
mph.
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’s (NSANY) Leaf, Ford Motor Co’s (F)
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 (GM), Honda Motors
Co. (HMC), 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.
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
TESLA MOTORS (TSLA): Free Stock Analysis Report
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