We’ve been hearing a lot about how tough the Chinese market is for long-established brands that are familiar to us in the West. Automakers like VW, Porsche and Mercedes have all suffered big sales slides in China, but Toyota has proved that’s it’s still possible to beat the increasingly competitive domestic brands at their own game.

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The bZ3X is an electric SUV built by a joint venture between Toyota and China’s GAC and it’s been selling like crazy following its debut four months ago. More than 200,000 examples have been delivered since March, GAC Toyota wrote on China’s Weibo social media platform, and the company also mentioned it had received over 30,000 orders.

A Price That Turns Heads

So how did Toyota manage to win where many other legacy brands have failed? One reason is the bZ3X’s incredibly competitive sticker. Prices for the electric SUV start at 109,800 yuan, or roughly $15,000 at current exchange rates. That makes it less than half the price of the GAC Toyota Highlander, which starts at 284,800 yuan ($39,300), and also undercuts the 171,800 yuan ($23,700) Camry.

Naturally, you’re not getting a fully-loaded, long-range EV for for your $15k, though versions with Lidar-based ADAS are available. The base bZ3X, the 430 Air, comes with a small 50 kWh battery that’s rated at 267 miles (430 km) on the generous Chinese CTLC cycle, but probably only offers 200 miles (320 km) of real range.

For a few yuan more, the 430 Air+ adds extra equipment but retains the base model’s battery, and the 58 kWh 520 Pro and Pro+ stretch the range to 323 miles (520 km) while still using the same single 201 hp (204 PS / 150 kW) electric motor as the lower-tier versions.

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Top of the tree is the 610 Max, which gets a bump to 221 hp (224 PS / 165 kW) and promises 379 miles (610 km) of range from its 68 kWh pack. But even that flagship trim will only set you back ¥159,800 (~$22,000).

Momentum Beyond a Single Model

The bZ3X isn’t the only GAC Toyota performing well in China. The joint venture’s total sales reached 364,218 in the first six months of 2025, and importantly they were up 5.6 percent, making the company one of the few similar collabs to make gains.

Camry sales were up 66 percent to 20,358 in June, Ziniu News reports, and the company’s Saina minivan registered 8,846 deliveries in the first half of the year, up 16 percent.

GAC Toyota

At the 2025 Toyota Technology Day in China, there was no shortage of promises and future-focused tech talk. While much of the spotlight was on product updates, the real takeaway was Toyota’s push to inject artificial intelligence and advanced electrification into its lineup, especially in partnership with local tech giants.

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Among the headline announcements, next-generation versions of the Highlander and Sienna will feature extended-range electric powertrains. Alongside these updates, Toyota and its local joint venture partner GAC laid out plans for two new energy vehicle platforms and confirmed strategic collaborations with Chinese heavyweights like Huawei and Xiaomi.

Two New EV Platforms in the Pipeline

Starting with the new platforms, they are designed for “new energy vehicles”, meaning they will be compatible with fully electric, range-extender, and plug-in hybrid powertrains. One platform is optimized for compact to mid-size vehicles under 5 meters long (196.9 inches), while the other is designed for larger vehicles up to 5.3 meters (208.7 inches).

Toyota’s upcoming bZ7 will be the first model to use the larger of the two new platforms. Serving as the brand’s electric flagship in China, depending on pricing, it could positioned as an affordable rival to the similarly sized Tesla Model S. Although the bZ7 was first previewed in April 2025, its launch in the Chinese market is scheduled for the first quarter of 2026.

This model also marks a major shift in Toyota’s tech strategy. The fully electric bZ7 will be the first to feature the Huawei DriveONE powertrain, which combines the motor, MCU, and inverter into a single integrated unit. Inside, it gets the Huawei Hongmeng cockpit system, offering an updated suite of apps and connectivity options. It will also come equipped with a LiDAR sensor, suggesting it’s being prepped for advanced autonomous driving capabilities.

AI, ADAS, and the “Caring Butler” Future

Besides the new platforms that are being developed in China, GAC Toyota is working on a new electronic architecture that will support the next generation of ADAS and advanced intelligent cockpits. Artificial intelligence is expected to play a growing role in how these systems evolve.

According to Chinese outlet Sohu, GAC believes the in-car voice assistant will become a “caring butler” by 2026–2027, and by 2028, it’s expected to mature into a “symbiotic partner” capable of intuitively responding to user needs, even claiming to “read people’s hearts.”

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The Japanese automaker will also collaborate with Xiaomi for in-vehicle technology, such as audio, and a clever intercommunication system between front and rear occupants using the built-in screens and cameras.

Digital Chassis and Broader AI Integration

Looking further ahead, upcoming GAC Toyota models will feature an AI-powered “intelligent digital chassis.” This system will be able to read road conditions in real time, adjusting suspension characteristics through electromagnetic shock absorbers and dual-chamber air suspension systems, which sounds similar to what Tesla is offering on higher end models.

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GAC Toyota also envisions an AI ecosystem extending beyond vehicles. The company plans to integrate AI into areas like research and development, manufacturing, quality inspection, and logistics. What’s less clear is whether any of these innovations will make their way into Toyota’s global product lines, or if they’ll remain exclusive to the Chinese market.