Toyota’s bZ3X EV sees strong demand in China with 10,200 units delivered, leveraging BYD’s battery tech and competitive pricing amid extended NEV tax exemptions.
Toyota’s bZ3X electric SUV has recorded 10,200 deliveries in China since its March 2024 launch, with 12,500 pending orders, as the Japanese automaker leverages BYD’s Blade Battery technology and competitive pricing to gain foothold in China’s booming NEV market.
Toyota’s China EV strategy takes shape
GAC Toyota began deliveries of the bZ3X in March 2024, with the ¥159,800 ($22,000) EV quickly gaining traction in China’s competitive electric vehicle market. As of June 2024, the model has recorded 10,200 deliveries with 12,500 orders pending, according to Toyota’s China sales reports.
The bZ3X’s competitive pricing and 500 km CLTC range position it as a strong contender in China’s budget EV segment. “Toyota’s partnership with BYD for battery technology gives them immediate credibility in range performance,” noted Mingyu Li, automotive analyst at Bernstein Hong Kong.
BYD technology powers Toyota’s EV push
The bZ3X utilizes BYD’s Blade Battery technology, marking a significant shift in Toyota’s traditional self-reliant approach. This collaboration comes as China extended its New Energy Vehicle (NEV) purchase tax exemption until 2027 on June 11, 2024, further boosting demand for affordable EVs.
J.D. Power’s June 2024 survey revealed that 78% of bZ3X buyers cited Toyota’s brand trust and after-sales service as key decision factors. However, the model faces stiff competition from BYD’s own Yuan Plus (Atto 3), which outsold the bZ3X 3:1 in May with 31,200 units sold.
Strategic shifts in China’s EV landscape
Toyota plans to introduce two new China-exclusive EV models by 2025, signaling deeper localization efforts. The automaker is also expanding partnerships with Chinese battery makers like CATL to reduce costs and improve supply chain resilience.
This strategic pivot reflects the growing dominance of Chinese automakers in the NEV sector. BYD’s vertical integration from batteries to vehicles gives it significant cost advantages, with the Yuan Plus offering similar range (510 km) at comparable prices to the bZ3X.
Historically, Toyota has been cautious about full electrification, focusing instead on hybrid technology. The company’s late entry into China’s EV market contrasts with its pioneering role in hybrid vehicles with the Prius. However, China’s rapid EV adoption – accounting for 59% of global EV sales in 2023 – has forced a strategic reevaluation.
The current EV boom in China mirrors the country’s earlier mobile payment revolution, when platforms like Alipay and WeChat Pay transformed consumer behavior in the 2010s. Just as those innovations created the infrastructure for today’s digital economy, China’s early investments in EV technology and charging infrastructure are now paying dividends in domestic market dominance.
