Toyota Gains โคGround in China with Affordable bZ3X EV
Shanghai – Toyota isโ making inroads in the fiercely competitive Chineseโ electric vehicle (EV) market with its new bZ3X, priced around $15,000, adn a broader strategy focusedโ onโฃ localized production โขand a growing EV lineup. The automaker’sโ China sales rose 6% between January and August,โ bucking a trend of decline seen by other Japanese carmakers.
Toyota debuted the bZ3X, emphasizing itsโข spacious interior designed as a โ”cozy Home,” and plans to โexpand its China โคofferings with the bZ5, bZ7, and โa revamped Lexus line available in both EV and hybrid versions. This expansion isโฃ supported by plans for a wholly owned factory โnear Shanghai, slated to begin production in โฃ2027 withโ an initialโ annual โoutput of 100,000โ battery-powered EVsโ for theโ Lexus โคbrand – making Toyota only the secondโ foreign passenger carmaker after Tesla โขto fully own aโ manufacturing facility in China.
Despite increasing โsales, Toyota facesโฃ profitabilityโข challenges. Average โprofit per carโ dropped to ยฅ162,000 ($1,090) โฃin fiscal 2024,down from ยฅ274,000 in fiscal 2021,with total China profits falling from ยฅ525 billion to ยฅ290โ billion โฃover the same period,according to โPelham Smithers.โข
Early adopters of the bZ3X have reported minor โคissues, with one customer, Yu, โขnoting dozens ofโฃ trivial problems and some design elements โfalling short of Toyota’s gasoline models, though he indicated he would โคstill โrepurchase the vehicle. The company โฃisโฃ alsoโ navigatingโค shifting consumerโฃ preferences, asโ growth in hybrid vehicle sales has slowed – up 17% in the first eight months of 2024 comparedโค to 76% growth in the sameโ period lastโค year – as fully electric cars regain popularity due to advancements in battery technology and charging infrastructure.
Toyota’s performance stands in contrast to itsโค Japanese competitors. Nissan Motor Co. experienced a 9% salesโ decline,while Honda Motor co. saw a 21% drop in chinaโค during โthe same โฃJanuary-August period. Bloomberg โฃIntelligence โsenior auto analyst Tatsuo Yoshida โobserves a growing divide, โฃstating, “toyota on one side, everyone else on the other.”