BYD & Toyota Bringing Affordable EVs To The Masses

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There is a lot of hand-wringing going on in the auto industry these days. Just this week, Honda announced a major de-escalation of its electric vehicle plans, thanks in large measure to the chaos created in the US by the failed tariff policies of the so-called president and his team of know-nothings. The US has built a tariff wall around its domestic auto manufacturing business, but at best it will delay the inevitable. BYD is surging forward with new models in markets around the world. Meantime, Toyota has introduced a new battery-electric SUV in China that mimics many of the features of the Tesla Model Y, but sells for roughly half as much.

The BYD Dolphin Surf Targets Volkswagen ID.2 & Renault R5

The European Union has its own tariff walls designed to keep Chinese manufacturers at bay, at least for a little while. BYD, however, is undeterred. On May 20, 2025, at an event in Berlin, the company introduced its Dolphin Surf — a slightly larger version of the BYD Seagull. The new model is not a Tesla Model Y competitor. It won’t leap tall buildings in a single bound, but it will compete directly with the upcoming Volkswagen ID.2 and the recently introduced Renault R5, both small cars with limited range but low starting prices.

The BYD Dolphin Surf can transport four people and a limited amount of their stuff for up to 220 km (137 mi). Americans would shudder at such limited capabilities, but they align closely with the offerings from Volkswagen and Renault. The best part is the price. Customers in Germany can put one in their driveway for the introductory price of just €19,990. Starting July 1, the price increases to €22,990.

By comparison, the Volkswagen ID.2 is expected to start at just under €25,000 when it goes on sale next year, and the Renault R5 costs €22,995 with a 40 kWh battery. The BYD Dolphin Surf is 3.99 meters long and has two batteries available — 30 kWh and 42 kWh, which will place it right in the thick of the small car market segment. While the entry level battery is small, the car will include premium features like a rotating touchscreen, keyless entry, and advanced cruise control features, according to Bloomberg.

The top of the line Surf Comfort has the larger battery, a 115 kW electric motor, and range of 320 km (200 mi) but ticking all the boxes adds almost 50 percent to the price. That model lists for €30,990, according to Electrive.

The Dolphin Surf will be manufactured in China and subject to the European Union tariffs initially, but BYD is in the process of building factories in Hungary and Turkey to avoid import duties on its hybrid and electric models. Electrive observes, “The fact that BYD has largely adopted the design of the Seagull, but adapted the body and technology for Europe, shows the company’s growing understanding of the local market.”

The competition in the small car segment in Europe is fierce. BYD is showing it is not afraid to mix it up with domestic manufacturers in order to carve out a place for its vehicles on the Continent. Europeans will get the beneficiaries, even if domestic manufacturers are not.

Toyota bZ5 Rolls Out In China

Toyota has just introduced the all new bZ5 in China and it is sending shock waves through the industry. Why? Because it is about the size of a Tesla Model Y, looks similar to the Model Y, has range and performance specs that are about the same as the Model Y, but sells for 130,000 rmb ($18,000) — roughly the cost of a Chinese-spec Toyota Corolla Cross. By comparison, the Tesla Model Y starts at 263,500 rmb ($36,500).

The bZ5 is built on Toyota’s e-TNGA electric car platform and manufactured by the FAW-Toyota joint venture in China. It is available with two battery packs — 65 kWh or 74 kWh supplied by BYD. Range as measured by China’s CLTC protocol is either 550 km (342 miles) or 630 km (391 miles). The range of the Model Y is 554 km (344 miles). The bZ5 is powered by a 268 hp electric motor with 330 Nm of torque.

According to Carscoops, the bZ5 is basically a re-branded version of last year’s bZ3C, which itself evolved from the bZ Sport Crossover Concept introduced in 2023.”By adopting the bZ5 name, Toyota seems to be aiming to position this new EV above the entry-level bZ3 sedan, but just below the upcoming bZ7 flagship.”

Size-wise, the Toyota bZ5 is nearly identical to the Tesla Model Y at 4,780 mm (188.2 inches) long with a wheelbase of 2,880 mm (113.4 inches) and rides on 21-inch wheels. Inside, there is a 15.6-inch touchscreen, a digital instrument cluster, and a floating center console. The front seats transform into a bed to complement the nap mode that is part of the 10-speaker JBL audio system. Chinese customers expect to be able to choose the aroma they prefer for the interior, so a fragrance dispenser is included. There are also nine airbags and a full suite of Level 2 automatic driver assistance features.

The International Business Times summarizes the importance of the Toyota bZ5 succinctly. It says, “The Toyota bZ5 isn’t just a car; it’s a statement. By blending BYD’s battery expertise with Toyota’s engineering prowess, the bZ5 offers Model Y-like performance at Corolla-like prices, a game-changer in the EV race. While it may not dethrone Tesla globally, its {low} price tag and 630 km range make it a formidable foe in China.As Toyota ramps up its bZ lineup, the message is clear — the EV market is no longer Tesla’s playground anymore with many major and minor companies giving them a run for their money. The bZ5’s rise proves affordability and innovation can coexist. Watch out, Elon.”

Toyota has not said anything about offering versions of the bZ5 in other markets. It certainly would not do so in the US, which imposes a 102.5% import duty on Chinese made cars and is poised to end any and all EV sales incentives it can find. Toyota would need to manufacture the car in the US with batteries and components sourced from US suppliers, which would clearly raise the price significantly.

Americans used to bestride the world of commerce like the Colossus of Rhodes. Now they quake in fear at the thought of having to compete with products manufactured in other countries. Things are not likely to end well for US manufacturing, despite all the posturing by the current administration as it conspires to make America irrelevant.

50 years ago, I read a story in Reader’s Digest about a young girl whose grandmother used to tell her family when times were hard during the Depression to “have a little rally.” The US has lost that ability to rally in the face of adversity. We can whimper and moan about the cruelties of fate and how unfair it is that the Chinese government gives such broad support to industries, just as we once whimpered and moaned about how unfair it was that the Japanese government gave such broad support to ifs industries. We demanded other nations open their markets to US products, but now that the shoe is on the other foot, we rail about how unfair things are when other countries expect the same.

I read recently about someone who suggested the US auto industry is becoming like Cuba, where new cars are no longer affordable and so people transition to keeping their old cars going as long as possible. If we are going to sit in the corner and suck our thumbs, we are doomed. We need to have a little rally and learn how to compete on the world stage again.