Latest news with #bZ3X
Sustainability Times
22-07-2025
- Automotive
- Sustainability Times
Toyota's $15,000 Electric SUV Is Crushing the Competition in China With Local Tech, High-End Features, and Record Sales
IN A NUTSHELL 🚗 Toyota launches the affordable bZ3X SUV in China, priced at around $15,000, to compete in the EV market. launches the affordable bZ3X SUV in China, priced at around $15,000, to compete in the EV market. 🔋 The bZ3X is equipped with a locally-made EV motor developed with Nidec, cutting costs and boosting sales. developed with Nidec, cutting costs and boosting sales. 🛡️ Despite its low price, the SUV offers a luxurious interior, advanced safety features, and a spacious design for families. 🌟 Strategic partnerships with companies like Xiaomi and Huawei are enhancing Toyota's market presence and technological edge. Toyota is making significant strides in the electric vehicle (EV) market, particularly in China, where competition is fierce and consumer demand is rapidly growing. With the recent launch of their most affordable EV, priced at around $15,000, Toyota is positioning itself as a formidable contender in the Chinese EV space. This move is not just about affordability; it's a strategic play involving new technology and local manufacturing partnerships to reduce costs and boost sales. Let's delve into how Toyota is leveraging these strategies to succeed in the world's largest automotive market. Breaking Ground with a Locally-Made EV Motor Toyota's strategic decision to equip its bZ3X electric SUV with a China-made EV motor is a game-changer. Developed through a partnership with Japan's Nidec, this motor is a cornerstone of Toyota's cost-cutting strategy, allowing the automaker to offer the bZ3X at a competitive starting price. This move is pivotal in the intense EV price war in China, where affordability often dictates consumer choice. The bZ3X's remarkable sales performance, becoming the best-selling foreign brand EV in China, underscores the success of this approach. According to Nidec's president, Mitsuya Kishida, the creation of the new electric motor was a challenging endeavor, but one that has already yielded significant cost reductions. Approximately 99% of the materials and parts for the motor are sourced locally, highlighting Toyota's commitment to integrating into the Chinese market. This local sourcing not only cuts costs but also strengthens Toyota's supply chain resilience, making it less susceptible to international market fluctuations. A Budget-Friendly Yet Luxurious Electric SUV The bZ3X is not just an affordable option; it's a well-rounded vehicle that offers luxury and advanced technology. Despite its low price point, the SUV boasts a luxurious interior, featuring a 12.3-inch infotainment screen and an 8.8-inch driver cluster screen. These features enhance the driving experience, making it appealing to tech-savvy consumers. Additionally, the SUV is equipped with nearly 50 advanced safety features, including Level 2 assisted driving, powered by Momenta's intelligent driving model. This makes the bZ3X a compelling choice for families seeking safety and convenience. With its spacious interior—nearly 10 feet with seats folded down—the SUV is perfect for family excursions and daily commutes alike. The model's two battery options offer considerable driving range, catering to diverse consumer needs. Strategic Partnerships and Market Expansion Toyota is not resting on its laurels; the company is aggressively expanding its EV lineup and forging key partnerships. The recent launch of another electric SUV, the bZ5, reflects Toyota's commitment to diversification. This model, comparable in size to a Tesla Model Y yet available at half the cost, further emphasizes Toyota's competitive pricing strategy. Moreover, Toyota's collaborations with industry giants like Xiaomi, Huawei, and Momenta are poised to drive innovation and expand market presence. These partnerships enable Toyota to integrate cutting-edge technology into its vehicles, enhancing their appeal in the tech-driven Chinese market. With sales in China up 7.7% in the first five months of 2025, Toyota is clearly on an upward trajectory. Future Prospects and Challenges As Toyota continues to solidify its presence in China, the construction of a new Lexus EV plant in Shanghai marks another significant development. This facility, Toyota's second wholly owned plant in China, follows in the footsteps of Tesla, signaling a commitment to long-term growth in the region. The potential collaboration with Nidec for this project could further enhance Toyota's production capabilities. Looking ahead, Toyota faces the challenge of sustaining its momentum in an ever-evolving market. With several new EV models in the pipeline, including the bZ7, Toyota aims to maintain its competitive edge. However, as the market continues to grow, Toyota must navigate regulatory changes, technological advancements, and shifting consumer preferences. Can Toyota continue to innovate and lead in China's dynamic EV landscape? This article is based on verified sources and supported by editorial technologies. Did you like it? 4.5/5 (24)
Mint
16-07-2025
- Automotive
- Mint
Nidec Builds Made-in-China EV Motor to Help Toyota Catch Rivals
Japan's Nidec Corp. is building an almost totally 'made-in-China' electric car motor to help Toyota Motor Corp. compete in the world's largest auto market, according to Chief Executive Officer Mitsuya Kishida. About 99% of the materials and parts in the E-axle motor are from China, said Nidec president Kishida. Building the integrated motor was 'incredibly tough,' he said in an interview last week. Nidec began supplying the motor for Toyota's electric bZ3X sport utility vehicle, which went on sale in March from about 110,000 yuan , and has sold about 20,000 units so far, according to a Toyota spokesperson. The car — the first Toyota vehicle to use this motor — is part of the company's push to turn around its fate in the world's No. 2 economy, as Chinese carmakers capture market share from global rivals. Using mostly Chinese parts allows the company to cut costs and helps reduce the price of the final car, which is necessary to compete in the Asian nation's ultra-competitive auto market. The new motor is also aimed at reviving the fortunes of fellow Japanese company Nidec, whose poor profitability and falling stock price are fueling investor discontent. Over the past five decades, the precision-motor manufacturer had sought growth through acquisitions, buying 75 companies and running about 250 factories, said Kishida, who earlier this year announced a restructure after taking the top job in 2024. 'Before we seek large growth in revenue we have to get our current business under control and get a more efficient structure,' he said at the opening of a new factory in Qingdao, northern China. The plant — which makes motors, compressors and electronics for home appliances — is an example of that, combining two older facilities from different business units in a new $100 million manufacturing hub. That restructuring may include selling some businesses, Kishida said, adding this would improve the image of the company for shareholders and hopefully boost the stock price. The Qingdao investment is a rare example of a Japanese company adding substantially to its presence in China, at a time when many others are cutting back as the nation's economic growth slows and global trade tensions rise. Net new Japanese investment into China was up about 3% in the first five months of this year, after rising about 6% last year, according to data from Japan's Ministry of Finance. Toyota is another firm bucking that trend, announcing a new factory in Shanghai for its Lexus brand in April, with that investment reported at around $2 billion. Kishida expressed confidence Nidec could also cooperate on that project, noting the company already supplies various other car parts to Toyota. With assistance from Yuki Furukawa, Masatsugu Horie and Nicholas Takahashi.
Business Times
16-07-2025
- Automotive
- Business Times
Japan's Nidec builds made-in-China EV motor to help Toyota catch rivals
[TOKYO] Japan's Nidec is building an almost totally 'made-in-China' electric vehicle (EV) motor to help Toyota Motor compete in the world's largest auto market, according to chief executive officer Mitsuya Kishida. About 99 per cent of the materials and parts in the E-axle motor are from China, said Nidec president Kishida. Building the integrated motor was 'incredibly tough', he said in an interview last week. Nidec began supplying the motor for Toyota's electric bZ3X sport utility vehicle, which went on sale in March for about 110,000 yuan (S$19,704), and has sold about 20,000 units so far, according to a Toyota spokesperson. The car, the first Toyota vehicle to use this motor, is part of the company's push to turn around its fate in the world's No 2 economy, as Chinese carmakers capture market share from global rivals. Using mostly Chinese parts allows the company to cut costs and helps reduce the price of the final car, which is necessary to compete in the Asian nation's ultra-competitive auto market. The new motor is also aimed at reviving the fortunes of fellow Japanese company Nidec, whose poor profitability and falling stock price are fuelling investor discontent. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Over the past five decades, the precision-motor manufacturer had sought growth through acquisitions, buying 75 companies and running about 250 factories, said Kishida, who earlier this year announced a restructure after taking the top job in 2024. 'Before we seek large growth in revenue we have to get our current business under control and get a more efficient structure,' he said at the opening of a new factory in Qingdao, northern China. The plant, which makes motors, compressors and electronics for home appliances, is an example of that, combining two older facilities from different business units in a new US$100 million manufacturing hub. That restructuring may include selling some businesses, Kishida said, adding this would improve the image of the company for shareholders and hopefully boost the stock price. The Qingdao investment is a rare example of a Japanese company adding substantially to its presence in China, at a time when many others are cutting back as the nation's economic growth slows and global trade tensions rise. Net new Japanese investment into China was up about 3 per cent in the first five months of this year, after rising about 6 per cent last year, according to data from Japan's Ministry of Finance. Toyota is another firm bucking that trend, announcing a new factory in Shanghai for its Lexus brand in April, with that investment reported at around US$2 billion. Kishida expressed confidence that Nidec could also cooperate on that project, noting the company already supplies various other car parts to Toyota. BLOOMBERG
Miami Herald
17-06-2025
- Automotive
- Miami Herald
Toyota budget Tesla Model Y killer takes off in China
At this point, Toyota is almost as much a part of the U.S. auto industry as the Detroit Big 3. Toyota is by far the most popular brand in the States. Toyota sold over 2.3 million vehicles in the U.S. in 2024, a 3.7% year-over-year increase. Just in the last 12 months, between April 2024 and March 2025, the company built 1.96 million units in the U.S., according to Statista. Related: Elon Musk, Tesla finally get some good news out of China Meanwhile, 52% of the 2.7 million vehicles GM sold globally last year were "made in the USA." Of the Big 3, GM isn't even ahead of Stellantis (57%), a multinational conglomerate based in Europe, in terms of domestic production. Ford leads the way, with 77% of the cars it sells originating from the States. But even though Toyota has a dominant position in the States, the U.S. EV market isn't very developed right now. In fact, current U.S. government policy concerning tax credits for EVs suggests that the U.S. market is getting ready to contract rather than expand. At the same time, China controls the key element EVs need for their batteries. China controls over 70% of the world's rare earth mining, 85% of its refining capacity, and 90% of rare earth metal alloy and magnet production. So Toyota, despite its U.S. ties, is headed West to debut its latest mass-market EV SUV, which is selling like crazy in the world's largest EV market. Toyota debuted the bZ3X, its budget electric SUV, in China in March. In May, the vehicle became the best-selling foreign EV in China. Toyota launched the bZ3X through its joint venture, GAC Toyota, at a starting price of 109,800 yuan, or about $15,000, making it the Japanese automaker's "first 100,000 yuan-level pure electric SUV" and the most affordable EV so far in China, according to Electrek. The BZ3X sold 4,344 units in May, edging out the Volkswagen ID.3, which sold 4,217 units. Fellow Japanese automaker Nissan came in third with its new N7 sedan. Toyota claimed that it took so many orders when the bZ3X dropped that the server crashed after taking over 10,000 orders in an hour. Related: Toyota moves production of popular US sedan to Britain The compact electric SUV is considered conservative-looking, but Toyota is betting that consumers are willing to pay a little bit more for a light detection and ranging (LiDAR) driver assistance system. Toyota offers the bZ3X in seven different trims, but only two of them feature LiDAR, which is considered superior to the camera-based system Tesla utilizes for its Full Self Driving system, for a slightly higher price. The car also offers two battery options that grant driving ranges of 430 km (267 miles) and 610 km (379 miles), respectively. China's EV industry has shifted into overdrive. The Chinese government has been pushing its citizens to adopt the green technology using cash, tax, and other incentives to get them to purchase EVs and hybrids. In late May, BYD, Tesla's biggest rival in China, launched a new round of price cuts of up to 53,000 yuan (about $7,300) across 22 models. The move sent shock waves throughout the industry, as smaller rivals will have trouble keeping up wth the discounts the much-larger BYD can offer. The move was so drastic that the China Association of Automobile Manufacturers (CAAM) and the Ministry of Industry and Information Technology had to issue public warnings about "disorderly price wars." More Automotive news: General Motors delivers surprising business updateFord reports surprising news amid Tesla turmoilApple creates a clever way to stop car thieves BYD controls 32% of China's new energy vehicle market, compared to Tesla's 6.1% market share. Tesla has been marketing in China using the made-in-China mantra, but data shows that production at its China plant is slowing. Tesla made 58,459 Model 3 and Model Y vehicles at Gigafactory Shanghai in April, a 6% year-over-year decline. This came as demand fell, wth delivery data also declining in recent weeks. To fight back, Tesla has been discounting its vehicles in China wth subsidized 0% interest rates and direct discounts. Related: General Motors makes $4 billion tariff move The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Nikkei Asia
23-05-2025
- Automotive
- Nikkei Asia
Toyota, Nissan EVs draw back Chinese drivers with local designs
GUANGZHOU -- Japanese automakers that have struggled in the fiercely competitive Chinese market are trying to turn around their fortunes with electric vehicles tailored to local tastes, an approach that is starting to bear fruit for Toyota Motor and Nissan Motor. Toyota's bZ3X electric sport utility vehicle has proven popular since its release in March, ranking among the top-selling foreign new-energy SUVs -- a category that includes EVs and plug-in hybrids -- in April, according to one research firm.
