Toyota's EV game plan: Why they're ignoring the U.S. (for now)

Toyota has been slow on the uptake when it comes to EVs in the North American market, but the Japanese automaker is singing a different tune in China.

BradPitt

Dec 19, 2024 - 22:21

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Toyota's EV game plan: Why they're ignoring the U.S. (for now)

Toyota has been pretty open about its stance on electric vehicles, but it turns out that stance might only apply to certain markets. In the United States, Toyota has been slow off the start line, offering just one EV as of the 2024 model year. In China, however, the Japanese automaker has taken a different tone. Toyota’s joint venture with GAC brings another all-electric SUV into the Chinese market for the 2025 model year - and you’ll never believe the price.

The Toyota bZ3X starts at $13,800

Following the nomenclature of its first joint venture EV with Subaru, the Toyota bZ3X is an electric SUV designed for value-conscious consumers. The entry-level model comes equipped with a 50 kWh battery that can travel 267 miles on a single charge. In terms of power, the bZ3X 430 Air+ features a single electric motor that produces 221 horsepower.

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That doesn't seem like anything to write home about at first, especially considering the North American bZ4X offers a 252-mile range on the high end. But, the mid and top-spec bZ3X models offer 323 and 385 miles of range, respectively. And the best part? While the bZ4X starts at $43,070 MSRP, its Chinese sibling starts at just $13,800 and tops out at $27,500.

There’s no confirmation on the size of the battery in either of those models, though. Regardless, an electric compact SUV with a 385-mile range beats out the Tesla Model Y’s EPA-estimated 337-mile range. Notably, there’s some discrepancy between Chinese and American range estimations, so take those estimates with a grain of salt.

The Toyota bZ3X doesn’t skimp on the spec sheet

While a low price typically means a barebones spec sheet in the United States, the Toyota bZ3X comes well-equipped. A 14.6-inch touchscreen display and an 8.8-inch digital instrument cluster come standard. The entry-level model includes an 11-speaker Yamaha audio system, as well as a wireless phone charger, too.

Of course, Toyota’s reputation for safety isn’t at risk here. The bZ3X comes packed with all the safety tech you’d expect of a Toyota vehicle. All trims come equipped with 11 high-definition cameras, lidar, a dozen ultrasonic sensors, and three millimeter-wave radars. While cheaper labor definitely makes for a difference in price between China and the United States, it’s clear Toyota is committed to creating a budget-friendly electric SUV with plenty of standard features.

Toyota has pushed back its EV plans in the United States

Toyota’s skepticism about EV adoption in the United States isn’t unfounded, but the world - and the United States - is still moving toward an all-electric future. Unfortunately, Toyota’s skepticism has resulted in a few delays set by the automaker itself.

Originally, Toyota planned to produce a three-row electric SUV in their Kentucky production facility by the end of 2025. Earlier this year, the automaker pushed production back to early 2026, the same year they plan to put another electric SUV into production at its Indiana facility in 2026. Toyota has also nixed a Lexus EV that was on the schedule for some time between now and 2030.

All in all, Toyota has invested more than $2.5 billion in its Kentucky and Indiana production facilities. The automaker plans to launch seven new EVs in the United States by 2026. Based on the aforementioned delays, however, it doesn’t look like any of those EVs will be built on American soil until 2026.

Final thoughts

By size alone, the Toyota bZ3X is comparable to the RAV4, which could be why we won’t see the electric compact SUV entering the United States. Even if it did, it’d carry a higher price tag than China’s top-spec $27,500 model. Unfortunate, especially considering how much Americans love crossovers.

Toyota has invested enough money in its American facilities to rule out scrapping U.S. EV production altogether. Time appears to be of the essence, though, with 2025 right around the corner and plans for seven new EVs in the United States market by 2026. Either we see some new EVs from Toyota in 2025, or 2026 will mark an electrifying year for Toyota - or I suppose we could see their EV plans delayed yet again.