Mitsubishi Outlander plug-in hybrid ‘game-changer’ to cost same as diesel model

Mitsubishi

Mitsubishi UK has revealed it will sell its new Plug-In Hybrid Outlander EV for the SAME price it retails diesel versions of the Land Rover Freelander rival, rather than many thousands of pounds more – a move managing director Lance Bradley believes has the potential to "blow the market apart.

"It could be a gamechanger," he told MSN Cars as the firm prepared to reveal the car’s price. "A car like this comes along once in a generation: this could be our Mazda MX-5, our Jaguar F-Type."

On Bing: see pictures of the Mitsubishi Outlander PHEV
Find out how much a used Mitsubishi Outlander

Including the £5,000 UK government subsidy for plug-in vehicles, the entry-level Outlander PHEV GX3h will be priced from £28,249, the same as the diesel-powered Outlander GX3h auto.

Above this trim level, the Outlander PHEV GX4h and GX4hs will be priced at £32,899 and £34,999 respectively – around £1,000 more than similar diesel models owing to the extra equipment offered as standard. Factor this in and price parity broadly remains.

The Outlander PHEV combines a petrol-electric hybrid drivetrain with a high-capacity lithium ion battery mounted beneath the car, which is recharged by plugging into the mains. This gives it a range of over 30 miles in pure electric motoring, before the petrol engine kicks in and extends the range to that comparable with a regular car.

For people whose daily commute is less than 30 miles, it means the petrol engine theoretically may not need be used at all. "Some owners may never use any petrol ever again…".

Because it costs so much less than many were expecting, Bradley admitted they have no idea how many they will sell. "We’ve already put in an order equivalent to 10% of last year’s sales to the factory at Japan – that’s far more cars than we normally put in stock prior to a car’s launch.

"We suspect we’ll need plenty more though. But we can get them: we can source as many cars as we need."

Marketing director Toby Marshall added "we could sell 3,000, we could sell 6,000, we could sell 10,000 – we simply don’t know yet."

Mitsubishi

Bradley revealed that the price has even won over notoriously hard-nosed car dealers. "We revealed it to the dealers a few weeks ago: it immediately drew a spontaneous round of applause, something we never normally get.

"Some dealers said they have taken preorders from customers committing to buy so long as it costs under £40,000: our £28k price tag shows how much cheaper than the rest it is."

Volvo is one brand selling a plug-in hybrid version of its V60 estate; this costs almost £50,000. The plug-in hybrid version of the Toyota Prius, however, costs £33,395 – or a similar price to the Mitsubishi once the Government grant is taken off.

Mitsubishi Japan did take some convincing that such an affordable price for the Outlander PHEV was a good idea, said Bradley. "We were in discussions with them for 12 months – they felt that we could charge a higher price because of the car’s high-tech appeal.

"But we learnt a lot from selling the i-MiEV (Mitsubishi’s electric city car). People expect new technology to save them money, but they also expect it to cost the same as current cars. Price is critical in the electric car market."

It is not a loss-leader though. "We will make money on it from day one."

The firm is thus full of anticipation for the new Outlander PHEV, which will form the core of its marketing activities this year (it’s more than doubling its marketing spend to £20 million) and even appear as a title sponsor on Channel 4 documentaries.

"At the moment, we’re like a kid who wants a bike for Christmas and has seen a bike-shaped package in the garage.

"They won’t know for sure until Christmas day, but they have a good feeling…".

MSN Cars is driving the new 2014 Mitsubishi Outlander PHEV this week, so keep an eye out for the full first drive report on the site later this week.

On Bing: see pictures of the Mitsubishi Outlander PHEV
Find out how much a used Mitsubishi Outlander
Mitsubishi Outlander review (2013 onwards)
Read a Mitsubishi review on MSN Cars
Mitsubishi Outlander PHEV stars at the 2013 Geneva Motor Show

By Richard Aucock, contributor, MSN Cars