Mitsubishi Australia defends Outlander PHEV pricing gap and availability

Mitsubishi Australia has defended the pricing of its new-generation Outlander plug-in hybrid (PHEV) SUV, saying Aussie buyers' appetite for a bigger battery and more driving range was behind the hike.

Speaking to media, the carmaker was put under pressure to address the pricing gap between combustion-powered Outlanders and the plug-in hybrid variants and why it has not diminished between the previous and current generations of Outlander seven-seater.

The previous generation 2021 Outlander PHEV three-model range started from $47,990 plus on-road costs for the entry-level ES, going up to $56,490 + ORC for the top grade Exceed.

The new Outlander PHEV four-car lineup however, starts at $54,590 + ORC and rises all the way through to $68,490 + ORC for the Exceed Tourer.

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The 2022 Outlander PHEV ES also wears a $2100 premium over the priciest non-hybrid Outlander Exceed Tourer AWD, while the previous generation (2021) Outlander PHEV ES was just $500 pricier than the Outlander Exceed AWD Diesel auto ($47,490).

It’s no secret that the latest generation Outlander represents a massive step up in tech over the old vehicle, and Mitsubishi Australia points out that the increase in capability also carries a price.

Tim Clarke, the firm's E-Mobility Strategy Manager, said: “Something we learned from the first generation to the second generation is that most people didn’t think it had enough [electric-only] range, which drove MMC [Mitsubishi Motor Company] to increase the battery size.

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“We also learned from the Australian market feedback that if it had 100 kilometres [of electric range] it would be considered level-pegging with an EV. It’s an emotional number that most people think would be sufficient for their biggest range of use, so that really drove the decision. For the Outlander the bigger battery size meant more cost and we couldn’t avoid that, it was a decision made early in development.”

With a claimed 84km (up from 54km) of electric-only driving range in the Outlander PHEV’s current form, Mitsubishi also hinted at the possibility of improved battery tech arriving in an Outlander update in the not-too-distant future, saying: “We might see an increase in the battery capacity and range before we get to the end of this generation.”

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As the worst of the pandemic recedes into the rearview, complex macro supply chain issues continue to affect manufacturers, with Mitsubishi indicating that “there was a forecast for battery pricing to come down over time, but unfortunately with the squeeze on rare earth materials such as lithium, it has kept the cost of EVs high. Until that is resolved, it will keep costs high for all electrified powertrains”.

Supply issues are also putting a strain on plug-in hybrid delivery numbers, which VFACTS data indicates has ceded ground in comparison to conventional hybrid vehicles throughout 2022.

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In the case of Mitsubishi, the issue is supply at the moment. "Our MY22 PHEV allocation had sold out within the first month and we’re working really hard to triple or even quadruple that allocation for MY23," said Clarke.

"As things stand, if we did that we’d already be sold out based on the waiting list as there is such high demand for the new [Outlander] PHEV. We would like to take the position of leading PHEV provider in Australia and we’re working hard to achieve that.”

Mitsubishi points out that, elsewhere in the showroom, its Eclipse Cross PHEV uptake is also up 15 per cent compared to the previous generation.