In a bold bid to recover lost ground in China’s highly competitive electric vehicle (EV) market, Japanese automotive giant Toyota introduced its cheapest smart EV yet. Bozhi 3X, launched in partnership with state-owned Guangzhou Automobile Group (GAC), hit retail shelves this week. The most affordable version costs 104,800 yuan ($14,500), while its pricier counterpart with Tesla-style navigation costs 139,800 yuan ($19,300).
GAC Toyota Vice President of Sales Peng Baolin revealed that Toyota, which has found it difficult to compete with home giants such as BYD, booked more than 10,000 orders in the first hour of opening sales. The company hopes that with luxury products such as an Orin X chip, lidar tech, and intelligent driving software by Momenta, Bozhi 3X will be a force to be reckoned with in the Chinese market.
The move follows China’s EV industry catching a price war heat after BYD rolled out new driver-assistance technologies in lower-end models priced below $10,000 without adding price pressure. Adding these technologies has set a new bar in terms of cost and technology in the EV space, with carmakers around the world retaliating by extending the boundaries by getting creative while keeping prices competitive.
Toyota and GAC first revealed the Bozhi 3X at an auto show in Beijing last year as a sign of their plans to manufacture EVs exclusively for the Chinese market. Unlike Toyota’s previous attempts at EVs, which did not make an impact, this new model distinguishes itself as a game-changer, balancing affordability with cutting-edge technology.
While Toyota has not yet released its export strategy for the Bozhi 3X or profit margins, analysts project that the low-price strategy is designed to recapture market share instead of profitability in the short term. The automaker’s action reflects its long-term commitment to battle in the world’s largest automotive market, where domestic players have led in innovation and affordability.
With the Bozhi 3X, Toyota is showcasing its readiness to compete with Chinese EV dominance by bringing affordability and world-class technology. As the EV dominance battle becomes more fierce, all eyes are on how Japanese automaker Toyota plays this high-stakes battlefield. Whether or not the model will be able to flip the script for Toyota, in the long run, remains to be seen, but the move certainly signals a significant turn towards the direction of Toyota’s Chinese EV venture.
