Hayward Mitsubishi lies just 15 miles northwest of Tesla’s electric vehicle factory in Fremont, Calif., in the center of the environmentally friendly San Francisco Bay Area. And although it may sound like a stretch, the modest Mitsubishi dealership is competing with mighty Tesla for green-car buyers in the region, thanks to store owner Ayman Moussa.
Moussa has seven Asian-brand dealerships in and around Silicon Valley. Through social media and other marketing efforts, he aggressively targets environmentally conscious buyers looking at Tesla and other EVs.
And even though many Mitsubishi dealers are longing for new product these days, Moussa is pitching a strong current vehicle to lead his marketing charge: the Mitsubishi Outlander PHEV.
“Through our marketing partners, we went after everybody interested in the HOV commuter lane in California and everybody interested in an EV,” Moussa told Automotive News. His Facebook and Google ad keywords included “Tesla” and “electric vehicle.” Mitsubishi does not offer an EV. But like a Tesla, the plug-in hybrid version of the Outlander can use the high-occupancy vehicle lane without a second passenger.
The Outlander plug-in has both a gasoline engine and a relatively large battery pack that drives two electric motors. It can go 22 miles solely on electric power, according to the EPA. The Outlander PHEV has been one of the top-selling plug-in hybrids worldwide. It went on sale in the U.S. in December 2017, and Moussa sold 14 in the first month alone.
“When new customers came to us, believe it or not, many of them turned in their Tesla leases and moved into a PHEV,” said Moussa, a Lebanese immigrant who has been a U.S. dealer for 18 years. One Tesla buyer explained to him that he loved the technology in his Model S but longed for the quick range from gasoline fill-ups.
“In the Bay Area, we have a lot of green areas around us, and people want to be able to go to Lake Tahoe,” Moussa said, which is about 200 miles to the northeast.
The dealership and its marketing partners were able to track leads coming from social media ads, which showed EV buyers were responding. One group of buyers is interested in the plug-in mostly as a commuter car that can take them back and forth on EV power between charges. The second group is more interested in road trips, Moussa said.
Hayward Mitsubishi’s Outlander PHEV sales accelerated from the 2017 launch. In 2018, sales reached 147 units, making Hayward the No. 1 Mitsubishi dealership in the U.S. for the vehicle. In 2019, the store was No. 2, at 119 units. Overall, the dealership sold 660 new and 1,347 used vehicles in 2019.
The store’s Outlander PHEV sales have eased this year, but help is on the way. In the fourth quarter, Mitsubishi will launch the 2021 model with a more powerful gasoline engine and a bigger battery for greater electric-only range. Moussa has ordered 60 to start for his three Mitsubishi stores. He also has Hyundai, Kia, Nissan and Infiniti stores.
In many U.S. markets, the plug-in version of the Outlander isn’t very popular. It costs about $10,000 more than the gasoline-only Outlander. But connoisseurs of electrified vehicles know it as something of a unicorn: It’s a roomy crossover with solid electric-only range, HOV stickers and up to $10,000 in federal, state and local rebates when combined.
The Outlander PHEV is the most expensive model in the Mitsubishi lineup, starting at $37,705 including shipping. But in the real world, Moussa said, it’s something of a steal. “You’re buying a plug-in hybrid for close to $24,000” before shipping, taxes and other fees, he said. “If this were a different brand, it would be $15,000 more.”
The top GT trim of the Outlander plug-in — with every available option — has a sticker price of nearly $50,000 with shipping, according to the Mitsubishi website.
The arrival of the PHEV three years ago also brought in a new buyer to the Hayward store. Traditional Mitsubishi customers are looking for a good deal on a reliable, fuel-efficient vehicle. But PHEV buyers have a much higher income and are more interested in the green technology and not the lowest monthly payments, Moussa said.
“This is the future. We might not be ready yet for all-electric now for everybody,” he added. “It’s only a select group of people now. But 2025 is the year when, I think, everybody is going to have some sort of electric version of their vehicle.”