Toyota's redesigned 2023 Prius packs more power, but sales expectations are down

DEL MAR, Calif. — The dramatically redesigned 2023 Toyota Prius sedan debuts early next year in the U.S. with a surprising statistic — one that has nothing to do with its latest fuel economy numbers, its bump in horsepower or its price.

That figure is 35,000, and it represents Toyota's modest volume expectations for the fifth-generation hybrid for 2023, despite an exterior styling overhaul that has magically transformed the formerly egg-shaped icon of fuel efficiency into a modern, sleek and stylish hatchback.

The projection more closely matches 2022 U.S. sales of the fourth-generation Prius, vastly reduced due to microchip and other supply shortages in Japan, as well as substantially decreased 2020 and 2021 volumes. Except for 2022, 35,000 represents the lowest annual U.S. sales projections for the Prius since 2003 — just 15 percent of peak sales of 236,655 vehicles in 2012.

Why such low volume? It's not from a lack of interest.

Toyota executives told Automotive News here at a media drive that the Japanese automaker saw more than 40,000 hand-raisers on its Toyota.com website alone in just the first few weeks following the reveal of the 2023 Prius on the eve of the Los Angeles Auto Show last month.

Lisa Materazzo, Toyota's executive vice president for marketing, said there have been "a lot of inquiries at our dealerships" and that the company is seeing a significant number of "Prius loyalists who have tended to be with us over multiple generations." Toyota expects the 2023 Prius will attract both first-time buyers and conquest buyers as well.

And yet, after spending the first few generations of its life as a cultural touchstone for cutting-edge environmentalism, the Prius is now just another hybrid in a Toyota lineup chock-full of hybrids — albeit one rated at up to 57 mpg and featuring a more powerful 2.0-liter engine. In a declining sedan market, the Toyota Prius will have to compete on equal terms against other hybrid sedans.

"I think within our own lineup, we're not going to be stepping on other hybrid vehicles ... because we've looked very specifically at the hybrid lineup, as we've added hybrid options to more vehicles over time," Materazzo said.

As part of the redesign, Toyota is revamping the vehicle's trim series in the U.S. from its current four offerings to three. The company is sunsetting the current generation's base model L trim level — along with its lower price point — and making the LE the new base model at a starting price of $28,545, including delivery.

The Prius LE rides on 17-inch alloy wheels with wheel covers and features an 8-inch center-mounted touch screen and cloth seats. It comes standard with Toyota Safety Sense 3.0, the automaker's suite of driving-assistance and safety technology. The smaller wheels help the LE achieve that 57 mpg combined fuel economy rating.

The mid-level Prius XLE adds 19-inch alloy wheels, a power driver's seat, rain-sensing wipers, wireless charging and parking assist with automated braking. A larger 12.3-inch touch screen and fixed-glass roof are optional. The Prius XLE starts at $31,990, including delivery, but the larger wheels drop the combined fuel economy rating to 52 mpg.

The top-level Prius Limited gets the larger wheels and touch screen standard, as well as heated and ventilated seating, heated steering wheel and power liftback. The Prius Limited starts at $35,560, including delivery.

Electronic all-wheel drive is optional across the lineup for an additional $1,400, Toyota said, but so equipped drops the combined fuel economy rating in the LE to 54 mpg and to 49 mpg in the XLE and Limited models.

Configured with front-wheel drive, the net horsepower rating for the Prius is 194, while all-wheel-drive models deliver 196 hp from the engine and hybrid system combined.

The 2023 Prius, imported from Japan, is expected to arrive in U.S. dealerships in January.