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Toyota Teams up With BYD To Sell Electric Sedans in China

The bZ3 sedan will be the second model of Toyota’s “Beyond Zero” collection,” powered by BYD electric batteries.

Toyota Motor restarted production of its first EV after fixing safety issues.
A 2023 Toyota bZ4X all-electric SUV is displayed during the 2021 LA Auto Show in California. Photo: Reuters.


Toyota Motor Corp will team up with carmaker BYD to produce and sell electric vehicles in China by the end of the year, three close sources have said.

The bZ3 sedan will be the second model of Toyota’s “Beyond Zero” collection,” powered by BYD electric batteries. The car is roughly the same size as Toyota’s Corolla model but with a bigger back-seat section, the sources said.

Toyota has been criticised by activists and green investors for not embracing battery powered electric vehicles fast enough.

The first bZ car – the bZ4X sport-utility vehicle – was due to hit the market in China earlier this year, but a global recall of the car forced Toyota to suspend production of the model globally.

Toyota had planned to unveil the bZ3, which uses BYD’s less bulky Blade batteries, at the Beijing auto show in April, but the event was cancelled because of the Covid pandemic, the sources said. They declined to be named because the plan is not public yet.

A Toyota spokesperson in Beijing declined to comment.

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Cheaper Than Tesla

The pricing of the bZ3 could not be determined, but one of the sources said it would likely sell for around 200,000 yuan ($28,000), nearly 30% below an entry-level Tesla Model 3.

The bZ3 will be produced in Tianjin at a pace of 30,000 vehicles a year on the same assembly as the bZ4X, two of the sources said. The plant is jointly operated by Toyota and one of its two Chinese partners, FAW Group.

There are no plans for Toyota’s other joint venture with GAC Motor to produce the bZ3, the three sources said.

Thinner Battery

Toyota has long advocated a small car that does not compromise on comfort as the best way to popularise BEVs, but it has struggled to produce one.

The need to stack bulky batteries under the floor has typically eaten up interior space unless the roof is raised, which is why many electric vehicles are taller SUVs.

The bZ3’s smaller sedan configuration has become feasible chiefly because of BYD’s thinner lithium-iron-phosphate (LFP) Blade battery technology.

One source said a typical Blade pack is about 10 centimetres (3.9 inches) thick when the modules are laid flat on the floor, roughly 5-10cm thinner than other lithium-ion packs.

  • Reuters, with additional editing from Alfie Habershon


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Alfie Habershon

Alfie is a Reporter at Asia Financial. He previously lived in Mumbai reporting on India's economy and healthcare for data journalism initiative IndiaSpend, as well as having worked for London based Tortoise Media.


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