The Japanese automaker is joining China’s EV price war. Toyota slashed prices on several electric vehicles in China, offering low-interest financing to compete with low-cost domestic rivals.

Toyota fights back with EV price cuts in China

Like most foreign brands, Toyota sells vehicles in China through joint venture partnerships. Toyota has two: FAW Toyota and GAC Toyota.

The long-standing joint ventures produce and sell Toyota models, such as the Corolla, RAV4, and Camry, but both have launched new battery electric vehicles using advanced local tech, powertrains, batteries, and other related EV components.

After launching the bZ3X, an entry-level electric SUV in March 2025, GAC Toyota announced earlier this month that it had delivered over 80,000 models in its first year.

The bZ3X was also the top-selling EV among joint ventures in China for five months straight from September 2025 through January 2026.

The bZ3X normally costs just 109,800 yuan ($15,000), as its “first 100,000 yuan-level pure electric SUV,” but the company is now offering it for as low as 99,800 yuan ($14,500).

Despite the low price, Toyota’s electric SUV is packed with advanced in-car tech and features. It’s Toyota’s first vehicle equipped with the Momenta 5.0 Intelligent ADAS system, featuring end-to-end smart driving capabilities in city and highway environments.

It’s sold with two battery pack options: 50.04 kWh and 67.92 kWh. The former provides a CLTC range of 430 km (267 miles), while the latter is rated at 610 km (379 miles).

Toyota bZ3X goes on sale in China (Source: GAC Toyota)

FAW Toyota also announced its spring deals, including a limited-time “price refresh” for the bZ3, starting at 93,800 yuan ($13,500), down from 109,800 yuan ($16,000).

The bZ3 is an electric sedan about the size of a Camry, co-developed by Toyota, FAW, and BYD. FAW Toyota launched the new version in December, upgraded to Momenta 5.0 with an added roof-mounted LiDAR.

It’s available with 49.9 kWh or 65.3 kWh BYD Blade LFP batteries, providing up to 616 km (382 miles) CLTC range.

FAW Toyota is offering several other promotions, including a 4,000 yuan trade-in subsidy for the bZ5 electric SUV or a $0 down payment. The company is offering buyers two “low-interest financing” rates for 2-5 years on both models.

Toyota’s EV price cuts are not exclusive to China. While the bZ3X, bZ3, and bZ5X are built and designed to sell in China, Toyota now offers three new electric SUVs in the US: the 2026 bZ, C-HR, and bZ Woodland, which it’s offering a $7,000 discount and 0% APR financing this month. The three-row Toyota Highlander BEV will join the lineup later this year.