$15,700 ‘Electric Corolla’ Shakes China’s EV Market as Toyota bZ3 Adds Lidar and Long Range

Toyota has dropped a surprise contender into China’s fiercely competitive electric vehicle market, unveiling the 2026 Toyota bZ3 at prices that have caught industry watchers off guard. Starting as low as 109,800 yuan (about $15,700), the sedan has already been dubbed the “electric Corolla” for its familiar proportions, Toyota branding, and mass-market ambitions.

Developed by Toyota-FAW, the refreshed bZ3 blends aggressive pricing with advanced driver-assistance technology rarely seen at this level. The model will initially be sold only in China, where EV price wars are reshaping the market.

Two Trims, Big Value-

The Joy trim starts at 109,800 yuan and delivers a 517 km CLTC range, while the higher-spec Pro trim is priced at 129,800 yuan (around $18,600) and stretches range to 616 km. Both versions use BYD’s Blade lithium-iron-phosphate (LFP) battery, known for its safety and durability.

Power comes from a single front-mounted motor, producing 181 hp in the Joy trim and 241 hp in the Pro. Fast-charging capability allows the battery to jump from 30 to 80 per cent in about 27 minutes.

Lidar and Near-Autonomous Tech at a Budget Price-

One of the bZ3’s most eye-catching upgrades is the inclusion of lidar-equipped Momenta 5.0 ADAS as standard. The system supports urban and highway Navigate on Autopilot (NOA), along with remote parking.

The hardware setup includes 32 sensors, comprising a roof-mounted lidar unit, five radars, 12 ultrasonic sensors, and 11 cameras, powered by a 544 TOPS computing chip, enabling Level 2+ assisted driving a rare offering at this price point.

Updated Design and Interior Tech-

Visually, the bZ3 adopts Toyota’s latest “hammerhead” shark-nose front fascia, through-type LED lighting, hidden door handles, and a new Dark Cloud Green exterior color. The sedan measures 4,725 mm long with a 2,880 mm wheelbase, placing it firmly in the midsize category with more space than a traditional Corolla.

Inside, Toyota has replaced the previous vertical display with a 15.6-inch horizontal touchscreen, complemented by ambient lighting and an AI voice assistant, creating a tech-forward cabin aimed at daily commuting and long drives alike.

Can It Challenge Tesla and BYD?

Despite its sharp pricing, the bZ3 enters a tough battlefield. The earlier 2023 version saw strong initial interest with 5,000 orders on day one, but monthly sales later averaged around 5,000 units. In 2024, FAW and GAC Toyota combined sold roughly 40,000 battery EVs, far behind domestic leaders.

Still, analysts believe the new pricing especially reports of entry offers dipping to 93,800 yuan ($13,400) could allow the bZ3 to pressure rivals like the BYD Seal and significantly undercut the Tesla Model 3, which starts at around 230,000 yuan in China.

Catch-Up Mode for Toyota

While the bZ3 highlights Toyota’s rapid progress, it also underscores the company’s late entry into the EV race and its reliance on BYD battery technology. Whether the “electric Corolla” can scale beyond China remains unclear, as overseas pricing and availability have not yet been announced.

For now, the 2026 bZ3 signals one thing clearly: Toyota is no longer playing it safe in China’s EV market and competitors are watching closely.