Scion iQ Boosts U.S Sales

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Toyota’s Tiny Scion iQ Boosts U.S Sales by 19 Percent

Scion brand, created to attract young drivers with quirky designs and low prices, said many initial U.S. customers for the iQ minicar are buying it as a fuel-saving third vehicle for urban trips.

The tiny hatchback, starting at $15,995, appeals to city drivers because it’s easy to park and gets the best fuel-economy of any gasoline-only auto in the U.S., Jack Hollis, vice president of Scion sales, said in an interview yesterday. Sales of iQ, which became available in all U.S. markets last month, lifted Scion deliveries 19 percent in the year’s first quarter.

“The early indication is it’s more of a third vehicle, and a little more of a higher-income buyer,” Hollis said. “This is the highest mpg car in the country, non-hybrid, and what I think is happening is people are seeing that.”

Toyota is adding the iQ, rated at 37 miles (60 kilometers) per gallon of gasoline in combined city and highway driving, and the new FR-S rear-wheel-drive sports car, due in June, to revive flagging sales for Scion. The brand was created in 2003 to draw younger customers to dealerships that also sell the company’s namesake Toyota models. Scion sales peaked at 173,034 in 2006, and dropped to 49,271 last year.
U.S. dealers should sell 10,000 FR-S models this year and 20,000 in 2013, Hollis said.

iQ Outlook

Sales of iQ this year have averaged 840 a month, in line with Toyota’s target of 750 to 1,100, Hollis. Sales of the model in April may be about 900 units, he said.