Toyota ramping up bZ4X SUV production to compete in swelling EV market, but not anytime soon
Is the world’s largest automaker finally responding to the rapidly changing auto industry? Toyota is now considering ramping up production of its first 100% electric mass-market vehicle, the bZ4X SUV, but not until 2025, according to sources familiar with the plans.
Earlier this week, Reuters released that Toyota is considering changing its EV strategy after seeing the momentum of Tesla and other automakers entering the booming electric vehicle market are having.
It’s no secret over the past few years, Toyota has been one of the slowest movers in introducing and scaling the production of fully electric vehicles.
After pioneering the hybrid market with the introduction of the Prius, Toyota has failed to gain any meaningful traction with its EVs. As Electrek has reported for years now, Toyota has, for some reason, criticized going all in on electric vehicles, citing numerous “facts” that have little to no basis.
For example, in August, a Toyota executive claimed that “the consumer isn’t demanding [EVs] at that level,” referring to the US goal of reaching 50% electric vehicle sales share by 2030.
Despite this, most automakers are struggling to keep up with the demand for their electric vehicles. Nearly every other automaker plans to introduce several new EV models in the coming years on their way to an all-electric future.
Instead, the company has insisted on sticking to its hybrid vehicle strategy, which has been successful thus far, helping propel them to the top of the auto industry.
However, the industry is quickly evolving from under them. The International Energy Agency (IEA) estimates that 13% of new cars sold in 2022 will be electric after doubling in 2021 to 6.6 million. To illustrate, more electric vehicles are sold each week than in the entire year of 2012.
On the other hand, Toyota had to halt production of its first EV model, the bZ4X, due to concerning safety recalls. The automaker resumed bZ4X sales in early October and has only sold 232 in 2022, according to Cox Automotive’s Q3 EV sales report.
Now sources familiar with the matter claim Toyota is considering plans to scale production of the bZ4X electric SUV, but not anytime soon.
Toyota to increase production of bZ4X EV SUV in 2025
Not next year or the year after – Toyota is holding out to ramp production of its first electric model until 2025, according to a new report from Reuters. The new agency says according to three people familiar with Toyota’s strategy:
The Japanese automaker is considering increasing production of its bZ4X electric vehicle (EV) crossover by either six or 12 times from its current monthly output of a little more than 1,000 cars a month, from 2025 if it can secure needed components, including semiconductors.
The automaker would add production capabilities at its Takaoka factory, near Toyota’s headquarters. Toyota declined to comment on the situation, however.
Toyota’s bZ4X is sold in the US and Europe, while manufacturing for the EV is in China for the region. In addition, Toyota announced last year it plans to introduce 30 battery electric models to the market by the end of the decade.
Electrek’s Take
Considering Toyota is already late in joining the growing market for EVs, the last thing we want to hear is it will be a few more years until the automaker really takes part.
With EV demand climbing significantly in key markets, waiting any longer can put the company in jeopardy of losing its title as the world’s largest automaker.
Toyota has the resources and network to make the transition. It will come down to when the automaker decides to execute. As of right now, they don’t seem to be in much of a hurry, and that could cost them in the long run.
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Tesla average transaction prices (ATPs) in March are estimated at $54,582, higher year-over-year by 3.5% and higher than in February, according to the latest monthly new-vehicle ATP report from Cox Automotive’s Kelley Blue Book.
Average transaction prices for the Tesla Model 3 and Model Y were higher month-over-month and year-over-year in March. Tesla’s sales in Q1 continued their long-term decline after peaking in Q1 2023. Estimates from Kelley Blue Book suggest Tesla’s sales in Q1 2025 were lower year-over-year by more than 8%. Its deliveries were also worse than expected.
New EV prices in March overall are initially estimated by Kelley Blue Book to be $59,205, higher year-over-year by 7.0%. New EV prices increased from the revised higher February ATP of $57,015.
The ATP for an EV last month was nearly 25% higher than the industry average of $47,462, widening the price gap between new EVs and gas-powered cars even more.
But EVs are still seeing heftier incentives than the industry average. In March, the average EV incentive came in at 13.3% of the transaction price – down 1% from February’s revised 14.3% but still well above what gas cars are getting.
So, where are we heading? Higher prices, thanks to Trump’s tariffs. But what that will look like remains to be seen. Erin Keating, executive analyst at Cox Automotive, said, “All signs point to higher prices this summer, as existing ‘pre-tariff’ inventory is sold down to be eventually replaced with ‘tariffed’ inventory. How high prices rise for consumers is still very much to be determined, as each automaker will handle the price puzzle differently.”
Read more: EV incentives surged to 14.8% of ATP in Feb – highest in 5+ years
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BYD just launched the first EVs based on its new Super e-platform with ultra-fast charging. The new Han L sedan and Tang L SUV can gain nearly 250 miles range in 5 minutes, and prices start at just $30,000.
Meet BYD’s new EVs with ultra-fast charging
During a launch event on April 9, BYD introduced the new EV models, claiming its engineers have “achieved the master realm of Chinese technology.”
The Han L and Tang L are the first EVs based on BYD’s 1000V Super e-platform. After unveiling the ultra-fast EV charging platform last month, BYD’s CEO, Wang Chuanfu, said to ease charging anxiety, “The ultimate solution is to make charging as quick as refueling a gasoline car.”
That solution is now here. BYD’s new Han L is available in three trims, starting at just 219,800 yuan ($30,000), lower than the pre-sale price of 270,000 yuan ($36,800).
BYD’s new electric sedan is 5,050 mm long, 1,960 mm wide, and 1,505 mm tall, or about the size of a Tesla Model S (5,021 mm long, 1,987 mm wide, and 1,431 mm tall).
All variants are powered by an 83.2 kWh BYD Blade battery, providing up to 435 miles (701 km) of CLTC driving range. Based on BYD’s 1,000V architecture, the Han L comes with two charge guns with an up to 10C charge rate.
Nearly 250 miles in just 5 minutes?
With ultra-fast charging, the electric sedan can gain 400 km (248 miles) in just five minutes. In six minutes, it can recharge from 10% to 70%, and in just 20 minutes, it can fully recharge (0% to 100%) the battery.
Like all its new EV models, the Han L is equipped with BYD’s God’s Eye smart driving assist system. It features the mid-tier “B” version and DiPilot 300.
BYD’s new electric SUV, the Tang L, is also offered in three trims. It starts at 239,800 yuan ($32,700), also below the pre-sale price of 280,000 yuan ($38,200).
The Tang L is also based on BYD’s 1,000V architecture and ultra-fast charging platform. Powered by a 100.5 kWh battery, it has a CLTC range of up to 435 miles (701 km) and can gain 230 miles (370 km) in 5 minutes. It will take about 30 minutes to go from 0% to 100%.
BYD’s electric SUV is 5,040 mm long, 1996 mm wide, and 1,760 mm tall, or slightly bigger than the new Tesla Model Y Juniper in China (4,797 mm long, 1,920 mm wide, and 1,624 mm tall).
Like the Han L EV, the electric SUV has BYD’s God’s Eye B ADAS system with DiPilot 300. Both the Han L and Tang are available as PHEVs, starting at 209,800 yuan ($28,500) and 229,800 yuan ($31,300).
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The fintech sector is rallying Wednesday following the Trump administration’s announcement of a 90-day pause on planned tariffs.
Affirm was up 20%, Toast and Block rose 13% and PayPal increased 10%.
The 90-day pause doesn’t eliminate the threat of tariffs — it just delays it. Investors are still pricing in risk, including inflation, discretionary pullbacks, hardware import costs and credit exposure.
Legacy payment networks such as Visa and Mastercard, both up 6%, continue to benefit from inflation and their structural ties to nominal GDP. These companies take a percentage of every transaction. That makes rising prices a tailwind.
“If prices are moving up for certain goods and you’re paying with a credit card, it’s actually good for the credit card companies,” said Dan Dolev, a fintech analyst at Mizuho.
Their pricing structure has historically made them resilient during inflationary periods, including recessions. The situation is less rosy for the new wave of consumer lending fintechs.
Affirm, which specializes in allowing consumers to buy now and pay later, could suffer if consumers pull back spending when the pause is lifted as a result of tariffs causing prices to rise. The San Francisco-based company could see its revenue less transaction costs margins — essentially what the company pockets after paying processing fees and customer incentives — drop more than 22% in that scenario, according to a Goldman Sachs estimate on Tuesday.
The adoption of buy now, pay later may rise as consumers hit credit limits, said SIG analyst James Friedman, but he added that the model remains untested in a downturn.
Toast, Block and Fiserv, which was up 6%, develop software used by restaurants and small businesses. Those companies could face rising hardware costs and softening demand from customers if the tariffs go through.
Meanwhile, cross-border payments — one of the most profitable segments for Visa, Mastercard and PayPal — remain under pressure as global travel slows and e-commerce flows adjust to the uncertainties of Trump’s tariffs.
Even remittance players such as Remitly and Western Union, both up 8%, could face longer-term pain if immigration pipelines slow or remittance corridors tighten under regulatory scrutiny. Similar to cross-border commerce, remittances depend on a steady flow of people and transactions, both of which remain fragile.
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