Toyota to build Lexus EV plant in Shanghai
Toyota is changing gears to tackle the sales decline in the Chinese market by setting up a new electric vehicle company in Shanghai.
Toyota China officially announced on Wednesday that Toyota Motor Corp and the Shanghai government have reached an agreement on establishing a pure EV and battery R&D and production company in suburban Jinshan District for Lexus, a premium brand under the Japanese automaker.
The new company will develop Lexus-branded pure electric models that meet the expectations of Chinese customers and is scheduled to go into production in 2027, according to Toyota officials.
Toyota has been actively pushing the transition to electrification in the face of fierce competition in the Chinese market.
This is the first time that the Lexus brand will own a factory in China, and the second foreign auto brand after American giant Tesla to wholly invest in the production of pure EVs in Shanghai.
According to official figures, Toyota's global sales reached 10.8 million units in 2024, a 3.7 percent decline compared with the previous year. A similar decline was spotted in the Chinese market as it sold 1.8 million units in the country, a 6.9 percent drop from the same period in 2023.
