[By Guancha Observer Network, Zhou Shengming; Edited by Gao Xin] "This sounds like a scam—a brand-new Toyota electric SUV priced at just $15,000 USD (approximately RMB 108,000). The model named bZ3X does indeed exist and starts at this price. However, there is one condition—you can only buy it in China."

According to a Wall Street Journal report on May 3, 2025, the unveiling of the highly cost-effective Toyota bZ3X in the Chinese market has once again drawn global attention to the increasing divergence between the two largest automotive markets: China and the United States.

The article points out that the concept of the "world-unified vehicle," once highly anticipated by global automakers, no longer exists. The consumer preferences, supply chain structures, technological development speeds, and even policy environments in the Chinese and U.S. markets have diverged like "Mars" and "Venus," each following its own path.

Chinese domestic brands, leveraging their powerful supply chains and rapid iteration capabilities, are able to introduce advanced electric vehicles at highly competitive prices. In contrast, the U.S. market remains dominated by traditional internal combustion engine models due to high costs and slow transformation. This trend not only reshapes the global automotive industry landscape but also highlights the importance of localization for multinational automakers to survive in China.

Is an electric vehicle affordable? Chinese consumers no longer need to worry.

The Wall Street Journal commented: "For American consumers, a gasoline SUV priced at $50,000 USD (approximately RMB 364,000) is already considered standard equipment for households, while the Chinese auto market presents a completely different scenario."

In today's new car sales in China, the majority are pure electric vehicles or plug-in hybrid vehicles. At the recent Shanghai Auto Show, it was evident that Chinese domestic automakers have almost stopped releasing new internal combustion engine models.

In contrast, the report notes that approximately 80% of new cars in the U.S. market still use traditional internal combustion engines.

The differences extend beyond powertrain types. The price gap between new energy vehicles in China and the U.S. is astonishing.

"In China, consumers no longer need to worry about whether an electric vehicle is 'affordable'—entry-level electric vehicles start at $10,000 USD (approximately RMB 72,000), while luxury seven-seater models with massage seats cost around $50,000 USD (approximately RMB 364,000). Due to user demand, even entry-level models come equipped with advanced driver-assistance systems." The Wall Street Journal stated.

By comparison, data from Cox Automotive shows that the average transaction price of U.S. electric vehicles in December 2024 was approximately $56,000 USD (approximately RMB 404,000). The International Council on Clean Transportation noted that only about 3% of electric vehicles in the U.S. market sell for less than $35,000 USD (approximately RMB 255,000).

"Integrating into China" has become a "must-do" for global automakers.

Not long ago, automakers dreamed of designing a "global car," a vehicle that could be sold worldwide. But this dream has now been shattered, especially in the two largest markets—China and the U.S., which together account for nearly half of global auto sales.

"A few decades ago, it was relatively easy to create a standard and promote it globally," said Volkswagen Group CEO Oliver Blume. "But now it's impossible because consumer expectations, industry ecosystems, and regulations differ."

Jürgen Reers, head of Accenture's global automotive business, also stated: "The 'global car' no longer exists."

For Toyota, a multinational automaker, if it wants to compete in the Chinese market, it must adopt a completely different product development process than in the U.S. market—American consumers still prefer fuel versions of the RAV4 or Tacoma pickup trucks, while Chinese consumers favor intelligent networked new energy vehicles.

Toyota stated that the bZ3X, starting at $10,980 USD, is its new model launched in China. This model is led by the Chinese team, produced in Guangzhou, uses locally sourced batteries, and incorporates the advanced driving assistance system from Momenta, a local Chinese company.

"Without China's supply chain, this car simply wouldn't exist," said Masahiko Maeda, head of Toyota's Asia region. "If we don't achieve localization, we can't even talk about entering this market."

A Toyota spokesperson said that the bZ3X received 15,000 orders on its launch day, exceeding expectations. Additionally, many Chinese consumers were willing to spend several thousand more dollars (approximately tens of thousands of yuan) to upgrade to more advanced driving assistance features.

Maeda pointed out that due to the "high cost of the U.S. supply chain," Toyota dealerships in the U.S. will not be able to sell low-priced electric SUVs like the bZ3X in the short term. By contrast, the starting price of the bZ4X, Toyota's all-electric SUV sold in the U.S. market, is approximately $40,000 USD (approximately RMB 288,000).

Industry insiders noted that thanks to China's complete and efficient supply chain, despite the bZ3X's price being only $15,000 USD (approximately RMB 108,000), Toyota can still achieve profitability. The Wall Street Journal also cited examples, stating that BYD, the leader in the budget-friendly new energy vehicle market, reported profits exceeding $1 billion USD (approximately RMB 7.2 billion) in the first quarter of this year, doubling year-over-year.

Senior executives at Toyota indicated that the Chinese market remains crucial. Currently, the Chinese market accounts for approximately one-fifth of Toyota and Lexus's global sales. Meanwhile, Toyota plans to build a new wholly-owned Lexus factory in Shanghai, scheduled for production in 2027.

The U.S. and Chinese auto markets may continue to diverge.

The U.S. government has held a negative stance toward Chinese electric vehicles in recent years. The Biden administration previously imposed a 100% tariff on Chinese electric vehicles—effectively banning their export to the U.S., while the Trump administration clearly opposed increased automobile imports.

"It is worth noting that almost all American-branded models sold in China are locally produced to take advantage of China's mature supply chain. The number of imported vehicles from the U.S. is negligible," The Wall Street Journal stated.

Moreover, American automakers' performance in the Chinese market has declined. From current trends, General Motors, Ford, and Stellantis's U.S. subsidiaries have been forced to shift their strategies in China to target specific niche markets.

Data shows that in the first quarter of this year, American brands accounted for 5.7% of the Chinese market share, a significant drop from 8.5% three years ago.

"As Sino-U.S. trade conflicts intensify, the two countries' auto markets may continue to diverge," The Wall Street Journal commented.

This article is an exclusive piece by the Guancha Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7501271922936660514/

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