What a $15,000 Electric SUV Says About U.S.-China Car Rivalry

From WSJ "
"SHANGHAI—The offer sounds like a scam—a new Toyota electric-powered
sport-utility vehicle for about $15,000, complete with sunroof and cup
holders.
But the Toyota bZ3X is real, and it is actually on sale starting at that
price. There is a catch: To buy one, you have to be in China.
..
For an American used to a $50,000 gasoline-powered SUV as the standard
family choice, the Chinese market is hardly recognizable.
A majority of new vehicles sold in China are either fully electric or
plug-in hybrids, and a look around the recent auto show in Shanghai
showed that local makers have mostly stopped introducing new
gasoline-powered models. In the U.S., by contrast, the traditional
combustion engine still powers about eight in 10 new vehicles.
..
The price difference is overwhelming. ... when a decent starter model
costs $10,000 and a luxury seven-seater with reclining massage chairs
can be had for $50,000. Because of customer demand, even the low-end
models come with advanced driver-assistance software.
..
Tesla is better-positioned than other American automakers to compete in
China, since its models have always been all-electric and it makes the
vehicles in Shanghai with Chinese batteries.
Yet it has fallen behind in another aspect that makes China special:
speed of development.
..
Toyota said its bZ3X—the recently introduced model that starts at
$15,000—was designed in China by the company’s engineers in the country,
who worked with a local joint-venture partner. It is made in Guangzhou
with Chinese batteries and driver-assistance software from Momenta, a
Chinese leader in that field.
“This couldn’t happen without a Chinese supply chain,” said Masahiko
Maeda, head of Toyota’s Asia business. “Unless you localize, it’s out of
the question.”