Mitsubishi
sold just 12 i-MiEVs in the United States last month, with year-to-date
sales of the car totaling 1,018 units through November.
Following big price cuts by other
automakers to stoke demand for electric cars, Mitsubishi said it will
reduce the sticker price of its slow-selling i-MiEV electric car by 20
percent for its upcoming model year.
The 2014 model year i-MiEV
will start at $23,845 including shipping when it goes on sale next
spring, representing a $6,130 reduction from the starting price of the
2012 model that preceded it. After a $7,500 federal tax credit afforded
to electric car buyers, the i-MiEV will start at $16,345.
Mitsubishi
also added more standard equipment to the pint-sized i-MiEV for the
2014 model year, including aluminum wheels, a quick-charging port,
rear-door speakers, heated front seats, heated side view mirrors and a
leather-covered steering wheel and shift knob.
The move follows
similar EV-price cuts made earlier this year by Nissan, General Motors
and Ford. A Mitsubishi spokesman said that the i-MiEV's starting price
of less than $17,000 after tax credits would make it more competitive
with not only other electric cars, but gas-powered subcompacts as well.
"The
EV and the general subcompact landscape has changed with various models
being introduced, including the Mirage, and after evaluating the market
condition we've decided to position the i-MiEV pricing competitively
within the subcompact segment" the spokesman said in an e-mail.
Mitsubishi's Mirage small car went on sale this fall with a base price
of $13,790, including shipping.
EV price battle
Already
a slow-seller, the i-MiEV's prospects in the U.S. market were all but
gutted in January when Nissan cut the price of its Leaf EV by $6,400.
The reduction brought the Leaf -- a larger, more comfortable car with a
bigger battery and more driving range than the i-MiEV -- down to
$29,650, compared to the Mitsubishi's $29,975 sticker.
Nissan
lowered the Leaf's price for the 2013 model year. But with plenty of
2012 model year i-MiEV's still in inventory at the beginning of 2013,
Mitsubishi bypassed the 2013 model year for the i-MiEV and continued to
sell-down 2012 models.
Mitsubishi responded by temporarily
offering dealer cash incentives of up to $10,000 per unit and
low-payment leases earlier this year to boost i-MiEV sales. The spiffs
helped, as i-MiEV sales in the first quarter hit 625 units, more than
four times the number of i-MiEVs sold in the same period a year earlier.
But monthly i-MiEV sales plummeted soon after, with monthly sales
exceeding 100 units only once since March. Mitsubishi sold just 12
i-MiEVs last month, with year-to-date sales of the car totaling 1,018
units through November.
Meanwhile, competitors have been busy
whacking EV price tags to lure more customers to their own high-priced
alternative vehicles. Nissan moved first with its $6,400 price cut,
while Chevrolet lowered the sticker price of its Volt plug-in hybrid by
$5,000 in August. Ford then cut $4,000 from the Focus Electric's price
in September, while Chevrolet and Fiat began offering cheap leases on
the Spark EV and 500e this summer.
Lower prices helped Leaf sales
more than double this year to 20,081 units through November, compared to
8,330 units in the same period last year.
Mitsubishi declined to provide a sales target for the i-MiEV.
"We would like to sell as many i-MiEVs as we
can and hope this reduction in pricing will attract more EV buyers
towards our brand." said
Mitsubishi's spokesman