The Toyota Prius is a popular hybrid car that has been on the market for many years. It’s known for its fuel efficiency and environmental friendliness.
But since the introduction of the Prius in Japan in 1997, many more hybrids as well as pure-electric vehicles, most notably Tesla, have hit the market. Today every major car manufacturer offers either a hybrid or an electric vehicle.
With so many choices available, who is now the target market for Toyota Prius cars?
In this article, we will answer this question first by looking broadly at the reasons why someone prefers a hybrid to a pure-electric or a traditional IC engine car. Then we will review 7 market segments that tend to choose a Prius over other hybrids.
Buckle up!
Why do People Prefer Hybrid Cars?
When it comes to buying cars based on the type of drive technology, consumers have three broad choices: IC Engine (gasoline or diesel), pure Electric, and Hybrid (Electric motor + IC Engine).
So why do some people prefer Hybrids over the other two options?
Many people see the hybrid as the best of both worlds or at least a compromise between the two.
A Hybrid works as a pure electric vehicle, operating entirely on electric motors, when its batteries are sufficiently charged and when it needs the high torque that an electric motor can provide – for example during acceleration.
But a hybrid can just as equally work as a normal IC Engine car when the batteries are down or when it is more efficient to use the engine.
So, when people go on long drives in hybrids, they do not have to worry about their car running out of battery power and being stranded on the side of the road.
Hybrids are generally less polluting than IC Engine cars but more so than pure Electric cars. And so for many people, they are just the right sweet spot between ICE cars and pure electrics.
Who is the Target Market for Toyota Prius cars?
To best understand the target market for Toyota Prius cars we need to understand two things:
- Why do people prefer to buy hybrid cars as opposed to IC Engine cars or pure electric cars? (answered in the previous section)
- Why do they prefer a Toyota Prius over hybrids from other manufacturers?
Once we answer these questions, we get the following customers segments of this market:
- People who want to save money on fuel costs
- People who want to reduce their environmental impact
- People who are looking for a reliable and affordable car
- People who want a car with good resale value
- People who like Japanese technology and brands
- People who are not comfortable with a pure electric car
- People who want to take advantage of subsidies
Now, let’s discuss each of these target markets in a little more detail.
1. People who want to save money on fuel costs
The primary target market for Toyota Prius cars is people who want to save money on their fuel costs. By switching from gasoline cars to a hybrid, they can reduce their fuel expenses for the same amount and type of driving.
Of course, the savings in fuel costs will vary depending on the price of gasoline, the driving habits of the driver, and other factors. And then there could be the additional cost of electricity to charge the car when it is not on the road.
2. People who want to reduce their environmental impact
Another target market for Toyota Prius cars is people who want to reduce their environmental impact. These are people who are concerned about climate change and want to do something about it.
By switching to a hybrid, they can reduce the emissions of greenhouse gases because from time to time the Toyota Prius will function as a pure electric car.
However, it should be noted that by using an electric car, we are simply transferring the emissions from the car to the location where the electricity is produced assuming it is being produced by burning fossil fuels which is the case in most power plants.
But this is still in improvement because power plants are better equipped to handle these emissions than are cities with millions of cars.
3. People who are looking for a reliable and affordable car
Japanese cars in general and the Toyota Prius, in particular, have been known to be very reliable.
The Toyota Prius is also affordable compared to other hybrid cars on the market especially compared to the value it delivers.
It should be noted that the initial cost of a hybrid car can be higher than a gasoline car because a hybrid is a gasoline car plus an electric car and so simply costs more to manufacture.
But over time, the savings in fuel costs can offset the initial investment making it affordable in the long run.
4. People who want a car with good resale value
Another target market for Toyota Prius cars is people who want a car that will have a good resale value. The Toyota Prius has been known to have very good resale value compared to other cars on the market including gasoline cars.
This is likely because of the reputation of Toyota for reliability as well as the fact that hybrid cars are in high demand and so there are more buyers than sellers. Also, a used car has a lower cost point than a new one making it more affordable for many buyers.
5. People who like Japanese technology and brands
There is a target market for Toyota Prius cars who simply prefer Japanese technology and brands. These people may not have any particular preference for hybrid cars but since the Toyota Prius is a hybrid, they are willing to consider it.
Many of these people will have owned other Japanese cars like a Honda or a Nissan or even a Toyota and so a move to the Toyota Prius will feel like a natural transition.
6. People who are not comfortable with a pure electric car
While pure electric cars like Tesla have an amazing brand, there is a target market for Toyota Prius cars who do not like the idea of a pure electric car, especially for long-distance travel.
There are several reasons for this including range anxiety (the fear that the battery will run out of power before reaching the destination), the lack of infrastructure to support electric cars, and the high initial cost.
A hybrid car like the Toyota Prius offers a compromise because it still has a gasoline engine and so can function as a normal car when needed and can be filled with gas at a normal gas station.
7. People who want to take advantage of subsidies
And finally, many countries still offer subsidies for hybrid and electric cars as an incentive to get people to move away from IC engine cars.
These subsidies can take the form of a tax credit, a rebate, free charging, or even free parking.
This is a target market for Toyota Prius cars because it makes the car more affordable which is an important consideration for many car buyers.
Conclusion
The target market for Toyota Prius cars primarily includes people who want to lower their fuel costs and want to do something good for the environment.
Because the Prius is a hybrid, it needs less gasoline to cover the same distance as an IC Engine car. This also means less greenhouse gas emissions.
However, it gives many people comfort to know that while they can operate the Prius as an electric car, they can always fill it with gas and drive it as a normal gasoline car if needed.
Finally, there are people who buy a Prius because of its known reliability, its resale value, the Toyota brand, and because of subsidies that they can get from the government.
