Despite being positioned as an affordable electric SUV in China, the Toyota bZ3X has surprised many with its high price tag in Ethiopia, the first international market to receive this model.
The price discrepancy reflects the significant challenges electric vehicles face when expanding into developing markets: tax costs, limited infrastructure, and unaligned policies.
In China, where the bZ3X is developed with local partners and domestically produced, the starting price is approximately $15,200 (VND 396.53 million). With subsidies, consumers can even purchase the vehicle for as low as $14,500 (VND 378.31 million).
However, when it arrives in Ethiopia, the price soars to 6.3 million birr, equivalent to $48,000 (VND 1.25 billion), more than three times the price in China.
The main reason lies in the layered tax and fee system. Specifically, the Toyota bZ3X is subject to a 35% import tax, 30% excise tax, 15% VAT, 10% surtax, and an additional 3% withholding tax. In total, tax costs can account for more than half of the vehicle’s value.
Despite the high prices, Ethiopia’s electric vehicle market is witnessing robust growth. While there were only about 4,600 electric vehicles registered in 2023, that number has tripled this year to reach 14,000. Notably, over 60% of new registrations in 2024 were electric vehicles, indicating a rapidly growing demand despite the nascent infrastructure.
Currently, most charging stations in Ethiopia are concentrated in the capital, Addis Ababa. However, the government aims to build 3,000 charging stations by 2030, demonstrating its commitment to transport electrification and reducing reliance on imported fossil fuels.
As part of Toyota’s strategy to promote electrification in China, the bZ3X is intended to be a mass-market model in emerging markets. This SUV offers battery options of 50.03 kWh, 58.37 kWh, and 67.92 kWh, corresponding to ranges of 430 km, 520 km, and 610 km, respectively (under domestic conditions).
Toyota has not disclosed its distribution plans for the Toyota bZ3X in other markets such as Southeast Asia, Europe, or Oceania. However, if it can maintain the pricing seen in China and leverage free trade agreements in these regions, the model could become a formidable competitor in the affordable electric SUV segment, where rivals like BYD, Wuling, and VinFast are gaining traction.
TH (Tuoitrethudo)
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