Hybrid Profit
As Volkswagen’s emissions scandal, dubbed “Dieselgate,” hit the global auto market, Japanese automakers are targeting the hybrid electric vehicle (HEV) market with discount events in troubled waters.
With the Volkswagen scandal deflating its clean diesel image and credibility, Japanese car manufacturers, which have been losing out to German automakers, seem to launch a counterattack with their hybrid models. Currently, the South Korean government offers 1 million won (US$857) of subsidies and other benefits, including acquisition and registration tax reductions, when a consumer buys a hybrid vehicle.
According to industry sources on Oct. 6, Infiniti Korea has launched a special promotion for its gasoline-electric hybrid cars for a month in Oct. The company sells a total of 8 lineups and 15 models in the domestic market. The percentage of gasoline and hybrid cars are major models that account for 70 percent of the total.
During the promotional period, Infiniti extends the battery warranty to 10 years, or 200,000 km, which is the longest period in the industry, when a consumer purchases its hybrid model, the Q50S Essence. When the consumer uses the Infiniti finance service, the company gives an additional discount. Also, Infiniti gives a 7 million won (US$5,998) discount off the list price to the first 70 people who purchase the Q70 premium sedan, regardless of the purchasing method. Moreover, the company provides a gas gift certificate worth 5 million won (US$4,284) to the first 60 people who buy the QX60 7-passenger luxury crossover.
Toyota also offers a gas gift certificate worth 3 million won (US$2,571) and operates a 48 monthly interest-free installment plan, when paying 30 percent of the price in advance, to consumers who purchase its major hybrid model Prius. In addition, the company provides “Smart Service” that replaces old tires with new ones when the tires are damaged and irreparable during driving within two years or 25,000 km after the purchase.
An official from Toyota said, “Considering the government’s subsidies for eco-friendly vehicles, the tax reduction on acquisition and registration, and the bond purchase discount that is required to buy a car, a consumer can practically get the Prius for the actual price of the car.”