Canada Needs This Electrifying Beast To Boost Its Economy
Toyota’s Cheapest EV Ever Costs $15,000, Gets 10,000 Orders In 60 Minutes
The new compact bZ3X has a plush interior with a 14.6-inch infotainment display and a digital instrument cluster
Toyota’s bZ3X SUV launched for $15,100 to save brand in China
- The electric SUV is a little larger than a BYD Atto 3 and offered with three different battery packs.
- Entry-level and mid-range models have a motor with 204 hp, while the flagship delivers 224 hp.
- Toyota sells two models equipped with an advanced driver-assistance system powered by Nvidia.
China is quickly establishing itself as the global epicenter for affordable electric vehicles, and for good reason. However, most of the budget-friendly EVs have come from homegrown brands that have been able to work around the traditional constraints that have slowed down legacy automakers.
But now, even Toyota, a legacy company that’s been criticized for its sluggishness in adopting electric vehicles, is jumping into the fray with a shockingly low starting price in the Chinese market, especially considering its size and features.
The vehicle in question is the bZ3X and it’s been brought to life thanks to Toyota’s joint venture with GAC. It was first presented in December, but sales of it only just started. It’s proven to be so popular that more than 10,000 orders were placed for it within an hour, causing the system to crash. Looking at what shoppers will be getting for their money, it’s easy to understand why the bZ3X is so red hot.
Pricing Details
Prices for the electric SUV start at 109,800 yuan, or roughly $15,000 at current exchange rates. Considering the compact SUV’s size and features, that’s an incredibly competitive price. For context, the GAC Toyota Highlander, similar to the one sold in North America, starts at 284,800 yuan ($39,300), while the Camry starts at 171,800 yuan ($23,700).
At that price, you’re getting the base version of the bZ3X, called the 430 Air. It comes with a 50.03 kWh LFP battery pack. While that’s on the smaller side for an SUV of this size, Toyota claims it’s good for 267 miles (430 km) of range on the CTLC cycle. However, since China’s testing cycle tends to be extremely generous, the real-world range will likely be closer to 250 miles (402 km). If you’re looking for a bit more equipment, there’s also a slightly upgraded 430 Air+ version available, starting at 119,800 yuan (~$16,500).
Toyota will also offer the bZ3X in 520 Pro (¥120,980 / ~$16,700) and 520 Pro+ (¥139,800 / ~$19,300) guises, both of which use a larger 58.37 kWh battery and have a quoted range of 323 miles (520 km). All 430 and 520 models feature a single 204 hp electric motor. The version offering the most range is the 610 Max, rocking a 67.92 kWh pack and good for 379 miles (610 km) on a charge. It also has a more powerful 224 hp motor. It starts at ¥159,800 (~$22,000)
Two versions of the 520 Pro offering advanced driver-assistance systems have also been announced, priced at ¥149,800 (~$20,700) and ¥159,800 (~$22,000), respectively. These models include 11 cameras, 12 ultrasonic radars, 3mm wave radars, and one LiDAR, all powered by the Nvidia Drive AGX Orin X.
The cabin of the bZ3X certainly isn’t super-luxurious as far as Chinese-built EVs go, but it does look decent. It features a 14.6-inch infotainment display, an 8.8-inch digital instrument cluster, and an 11-speaker Yamaha audio system, all fitted as standard.
The SUV itself measures 4,600 mm (181.1 inches) in length, 1,875 mm (73.8 inches) in width, and 1,645 mm (64.7 inches) in height, with a wheelbase of 2,765 mm (108.8 inches), meaning it’s roughly the same size as a RAV4 It weighs in at 1,835 kg (4,045 lbs), which is fairly typical for this type of electric vehicle.
Toyota’s latest EV measures 4,600 mm (181.1 inches) in length, 1,875 mm (73.8 inches) in width, and 1,645 mm (64.7 inches) in height, with a wheelbase of 2,765 mm (108.8 inches). It tips the scales at 1,835 kg (4,045 lbs).
Is Toyota bZ3X a good fit for Canada?
The Toyota bZ3X as an all-electric compact SUV could be a strong contender for the Canadian market.
Why the Toyota bZ3X Could Be Good for Canada
There are many factors why it is a good fit for Canada, most extraordinary is bZ3X’s irresistible pricing at $15,000 a pop and coupled with Toyota’s impeccable reputation, it simply means bZ3X is already a “sure-win” even before it’s born.
In light of the Tariffs War, should Toyota manufactures bZ3X in Canada?
Manufacturing the Toyota bZ3X in Canada could be a strategic move for both Canada and Toyota, especially in light of the ongoing global trade tensions, including the Trump-era tariffs and the current geopolitical climate. Here’s an analysis of the potential benefits and challenges of producing the bZ3X in Canada:
Benefits of Manufacturing the bZ3X in Canada
- Avoiding U.S. Tariffs:
- The Trump-era tariffs on imported vehicles and auto parts (under Section 232) could still pose a risk for vehicles manufactured outside North America and imported into the U.S. By producing the bZ3X in Canada, Toyota could avoid these tariffs, as vehicles made in Canada qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA).
- Access to the U.S. Market:
- Canada’s proximity to the U.S. and the USMCA agreement would allow Toyota to export the bZ3X to the U.S. market tariff-free, making it more cost-competitive compared to models imported from overseas.
- Canadian EV Incentives:
- The Canadian government is actively promoting EV manufacturing as part of its green energy and climate goals. Toyota could benefit from federal and provincial incentives for setting up EV production facilities in Canada.
- Skilled Workforce and Infrastructure:
- Canada has a well-established automotive manufacturing sector, particularly in Ontario, with a skilled workforce and existing infrastructure. Toyota already has a manufacturing presence in Canada (e.g., the Cambridge and Woodstock plants), which could be leveraged for bZ3X production.
- Local Market Appeal:
- Producing the bZ3X in Canada could enhance its appeal to Canadian consumers, as “locally made” vehicles often resonate well with buyers. This could also align with Canada’s push for domestic EV production.
- Reduced Supply Chain Risks:
- Manufacturing in Canada would reduce reliance on overseas supply chains, which have been disrupted by global events like the COVID-19 pandemic and geopolitical tensions.
Challenges of Manufacturing the bZ3X in Canada
- High Labor Costs:
- Labor costs in Canada are generally higher than in countries like Mexico or some Asian nations. This could increase the overall production cost of the bZ3X, potentially affecting its pricing and competitiveness.
- Initial Investment:
- Setting up or retooling an existing plant for EV production would require significant upfront investment. Toyota would need to weigh this against the potential long-term benefits.
- Competition from Other EV Makers:
- Other automakers, such as Ford and GM, are also investing heavily in EV production in North America. Toyota would need to ensure its Canadian operations are efficient and cost-competitive to keep up.
- Dependence on U.S. Market:
- While Canada offers access to the U.S. market, Toyota would still be heavily reliant on U.S. demand for the bZ3X. Any changes in U.S. trade policy or economic conditions could impact sales.
Strategic Considerations
- Leveraging Existing Facilities:
- Toyota could consider retooling its existing Canadian plants (e.g., Cambridge or Woodstock) to produce the bZ3X, minimizing the need for new infrastructure and reducing costs.
- Partnerships with Canadian Suppliers:
- Collaborating with Canadian suppliers for batteries and other EV components could further reduce costs and align with local content requirements under the USMCA.
- Government Support:
- Toyota could negotiate with the Canadian government for additional incentives, such as tax breaks, grants, or subsidies, to offset the costs of setting up EV production.
- Focus on North American Market:
- By manufacturing in Canada, Toyota could position the bZ3X as a North American-made vehicle, appealing to consumers who prioritize locally produced goods.
Conclusion
Manufacturing the Toyota bZ3X in Canada could be a smart strategic move, especially given the ongoing trade tensions and the benefits of the USMCA agreement. It would allow Toyota to avoid U.S. tariffs, access the lucrative North American market, and align with Canada’s push for EV manufacturing. However, Toyota would need to carefully manage production costs and ensure competitiveness in a rapidly evolving EV market.
If Toyota can secure government support and leverage its existing Canadian infrastructure, producing the bZ3X in Canada could be a win-win for the company, Canadian consumers, and the broader North American market.
Canada, are you ready for Low Cost EV Revolution?
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