Toyota, often considered a latecomer in the electric vehicle (EV) market, made a bold entry in 2022 with its compact electric SUV, the bZ4X. However, the model faced significant challenges, including underwhelming performance compared to its competitors and a serious flaw where the wheels detached during driving. These issues led to widespread criticism, and many believed Toyota should focus solely on hybrid vehicles.
Recent developments, however, are surprising. The company launched an affordable model in China, the world’s largest EV market, and sales far exceeded expectations in a short period. The price is the most competitive ever for a Toyota EV. This article explores the factors behind Toyota’s unexpected success in China.
Overwhelming Demand Crashes Servers
Compact SUV Priced Under 16,000 USD
Toyota’s locally designed model, the bZ3X, was released in China this past March and surpassed 10,000 units sold within its first month. According to major international outlets, the car received so much demand after its launch on March 16 that the website crashed within an hour of going live, with over 10,000 orders placed. An additional 12,000 orders have been placed for the vehicle, a remarkable achievement in China, where domestic brands are typically preferred.
The key to the bZ3X’s popularity is undoubtedly its price. Starting at 109,800 CNY (approximately 16,000 USD), it offers exceptional value for a compact sedan. The vehicle is 4,600 mm (181.1 inches) long, 1,875 mm (73.8 inches) wide, and 1,645 mm (64.8 inches) high, making it a strong competitor in the compact segment. The bZ3X is designed with a China-specific strategy and strong product appeal. It offers lithium iron phosphate (LFP) battery options in three sizes: 50.03 kWh, 58.37 kWh, and 67.92 kWh, with a maximum range of 610 km (379 miles) on a full charge based on the CLTC standard.
Interior Designed to Chinese Tastes
Cutting-Edge ADAS Hardware
The interior of the bZ3X closely resembles that of the latest Chinese EVs, especially when the emblem is concealed. A large 14.6-inch center display grabs attention, while the two-tier center console features wireless charging pads for smartphones, cupholders, and other storage spaces strategically placed for convenience. The vehicle also comes standard with a high-end audio system consisting of 11 speakers, making it available across all trims, not just as an option.
The bZ3X features high-performance hardware to support advanced driver-assistance systems (ADAS). The NVIDIA Drive AGX Orin X chip, offering a maximum processing power of 254 TOPS, works in conjunction with 11 cameras, 12 ultrasonic radars, and 1 lidar sensor. From the mid-range trims like the 520 Pro Smart and 610 Max, the vehicle offers Level 2+ autonomous driving assistance features.
Made in China, for China
Over 65% Local Parts Sourcing
The bZ3X offers several family-friendly features, like electric seats that connect the first and second rows to provide a comfortable resting position and a panoramic roof for an open, spacious feel. As a model designed specifically for China, the bZ3X is manufactured exclusively by the GAC-Toyota joint venture, with more than 65% of its parts sourced locally. This contributes to its affordable price and will likely attract positive reactions from Chinese consumers.
Toyota, recognized for its expertise in hybrids, continues to engage with the EV market. By focusing on local needs and prioritizing localization, Toyota has seen notable early success with the bZ3X, attracting attention in the industry. The key question now is whether Toyota can maintain its position and compete with local Chinese brands in the affordable EV market.
