It looks like sales of Toyota’s plug-in models in recent months have been enough to trigger the automaker’s moratorium on the federal EV tax credit last quarter – leaving people Buyers can only purchase a vehicle such as the BZ4X or RAV4 Prime plug-in hybrid and can claim the full amount of $7,500.
Across the Toyota and Lexus brands, in a sales update released Friday, the automaker reported that it sold 3,876 qualifying plug-in vehicles in June, for a total of 17,454 in the first half of 2022 – down from 28,529 in the same period last year, mainly due to sales of Prius Prime Dip into the mixture.
Based on Bloombergcites its own data verified with the company, which is enough for the automaker (with Toyota and Lexus considered together) to pass 200,000 qualifying vehicles, at the start of the period eliminate.
Toyota can’t confirm directly yet Green car report that it surpassed the total. We’ll update and clarify this if and when it happens, as it could affect the car-buying process for many families looking to switch to a plug-in model.
2023 Toyota bZ4X Limited AWD
As the IRS outlined, the removal of the 30D, the Power Sockets Credit, begins for a particular automaker’s products “in the second quarter following the quarter in which the 200,000th vehicle was sold.”
Assuming it now crosses that threshold, that would begin Toyota’s phase-out on October 1, with the EV tax credit reduced to $3,750 through April 1, 2023. it will drop to $1,875 until fully depleted on October 1, 2023. The equivalent tax credits for plug-in hybrids will go to 50% of their full amount, then 25% full, for the same time period—so while the RAV4 Prime’s $7,500 full credit will follow that same schedule, the $4,502 full credit for the Prius Prime will be cut at $2,251 respectively. and $1,126.
2022 Toyota Prius Prime
2022 Toyota Prius Prime
2022 Toyota Prius Prime
This would make Toyota the third automaker – after GM and Tesla – to hit the 200,000-vehicle cap, with Ford and Nissan both already close to the number. For Toyota, it’s a quarter earlier than the car manufacturer suggested in a single check-in in March, but as we expected based on an ongoing tally from EVAdoption.
Toyota and Lexus are considered together for the EV tax credit, so it plays out the same way for the luxury brand Lexus, with NX 450h + plug-in hybrid and it’s coming Power crossover RZ 450e.
2023 Lexus RZ 450e
Toyota says the EV tax credit milestone will increase costs and hinder adoption of climate-friendly vehicles, according to Bloomberg.
Last month Toyota joined GM, Ford and Stellantis to ask Congressional leadership for EV tax credit extension to anyone buying an eligible vehicle — until sunset applies to all EV products regardless of automaker or cumulative sales. Toyota previously objected proposed extension of the EV . tax credit, more than one bonus applies to union-manufactured vehicles. The EV tax credit was then supposed to be part of a conciliation package after the infrastructure bill, but even recently Senator Joe Manchin called the extension of the EV tax credit “ridiculous.”
The expansion had previously received bipartisan support in Congress, but in 2019 it was cut from a federal spending bill based on “Extreme resistance” from President Trump at that time.
Toyota has laid out some positive trends in the hybrid sector. Electric vehicles – including hybrids, plug-in hybrids, EVs and fuel cell models – now account for about 25.5% of the company’s sales, compared with about 23% in the same period a year ago.
Toyota RAV4 Prime XSE 2021
RAV4 continues to lead the market. Toyota reports that it delivered 10,153 RAV4 Prime plug-in hybrid vehicles in the first half of the year – matching very closely with the 20,000 it says. has been allocated to the US market. The 40-mpg RAV4 Hybrid posted its best-ever first-half sales, at 86,673 over a six-month period.
Sales of the bZ4X electric vehicle are just getting started, with a total of 232 units in the US as of the end of June.
