US sales of the popular Prius and other hybrids made by Toyota have declined because buyers of those vehicles no longer qualified for a full federal tax break, according to Toyota officials.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“Until recently, there was a two-month wait to get one,” Jim Press, president of Toyota North America, told an auto technology conference about Prius availability, Reuters reported.
Sales and marketing officials said lower gas prices and production changes at the Japanese automaker were other factors that cut into its industry-leading gasoline-electric hybrid sales in October.
Press said for the first time since rolling out the Prius in 2003, Toyota is able to fulfill consumer demand for the car.
He also called on Congress to extend the hybrid tax incentive for 2007 purchases, the report added.
Prius models purchased on or after 1 January 2006 and before 1 October 2006 potentially qualified for a tax credit of US$3,150. Highlander Hybrids and Camry Hybrids purchased during the same period could qualify for a tax credit of US$2,600.
The reduced tax credit amounts effective from 1 October 2006 are US$1,575 for the Prius and US$1,300 for both the Camry Hybrid and the Highlander Hybrid. Prius vehicles purchased between 1 April 2007 and 30 September 2007 may qualify for a tax credit of US$787.50, while Highlander Hybrid and Camry Hybrid may qualify for a US$650 tax credit.
Toyota hybrid models purchased after 30 September 2007 will not qualify for a tax credit based on current federal income tax laws.
