In 2017, Lexus cut the price of its 2018 hybrid NX crossover to put it in line with the NX300 non-hybrid model, bringing the price disparity down to a mere $950. The move was an innovative attempt to inspire customers who thought hybrid was out of reach to spring for the hybrid model–and it’s actually working.
Steph Williams at TTAC points to recent remarks by Lexus General Manager Jeff Bracken as reasoning behind the strategy. Bracken remarked, “We have your true environmentalists, and you can certainly appeal to that group of buyer, but to broaden the appeal we felt compelled to bring that premium down… The No. 1 focus was we want to make this powertrain available to more people.” According to early sales data, the price cut is pushing more customers to go green. Read more.