Toyota has a new secret weapon to cut costs and keep pace in China’s EV race

Toyota’s most affordable electric vehicle, which starts at around $15,000, is off to a hot start in China. With a new locally-built EV motor, Toyota is already cutting costs to keep pace in China’s fierce EV price war.

Toyota secures a new China-made EV motor to cut costs

After launching the bZ3X in March, Toyota’s joint venture, GAC Toyota, claimed the new electric SUV was “so popular that the server crashed.”

The electric SUV is selling faster than expected. In May, its second full month on the market, the bZ3X was the best-selling foreign brand EV in China, outselling the Volkswagen ID.3 and ID.4 Crozz, BMW i3, and Nissan’s new N7.

GAC-Toyota’s general manager of sales, Peng Baolin, announced the bZ3X retained the title in June with 6,030 units delivered.

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Toyota has already sold around 20,000 models, a new record for joint venture electric SUVs. Thanks to a new, locally made EV motor, the Japanese automaker can offer the bZ3X at such low prices.

Japan’s Nidec built a “made-in-China” EV motor to help Toyota compete in China’s intense EV market. Nidec’s president, Mitsuya Kishida, said in an interview (via Bloomberg) that around 99% of the materials and parts are sourced from China.

According to Kishida, building the new electric motor was “incredibly tough,” but it’s already helping Toyota cut costs in China.

Nidec began supplying the new EV motor for the bZ3X in March, a key factor in the electric SUV’s starting price of roughly $15,000.

The bZ3X is available in seven different trims with prices ranging from 109,800 yuan ($15,000) to 159,800 yuan ($22,000). It’s offered with two battery packs, 50.03 kWh and 67.92 kWh, providing a CLTC driving range of 430 km (267 miles) and 610 km (379 miles), respectively.

Despite the low price, the interior is surprisingly luxurious and equipped with advanced technology, including a 12.3″ infotainment screen and an 8.8″ driver cluster screen.

Powered by Momenta’s end-to-end intelligent driving model, the electric SUV offers nearly 50 advanced safety features, including Level 2 assisted driving.

Toyota promotes it as a budget-friendly family SUV. With all seats folded down, the bZ3X has nearly 10 feet of space.

At 4,645 mm in length, 1,885 mm in width, and 1,625 mm in height, Toyota’s electric SUV is about the same size as the BYD Yuan Plus (sold as the Atto 3 overseas).

Electrek’s Take

Toyota is showing signs of a recovery in China with a series of new electric vehicles rolling out. Last month, the company launched another electric SUV, the bZ5.

The bZ5 is about the size of a Tesla Model Y, but it’s about half the cost in China, with prices starting at 129,800 yuan ($18,000).

During GAC-Toyota’s EV Tech Day in June, the company announced partnerships with “car industry bigwigs,” including Xiaomi, Huawei, and Momenta.

Through the first five months of 2025, Toyota’s sales in China are up 7.7% with over 530,000 vehicles sold. With several more EVs on the way, including the bZ7, the Japanese automaker aims to catch up.

Toyota also broke ground on a new Lexus EV plant in Shanghai last month, the second wholly owned auto plant in China from a foreign automaker, following Tesla. Kishida said Nidec could cooperate with Toyota on the project for supply.