Toyota plans to open a factory in Shanghai around 2027 to build next-generation Lexus electric vehicles. The new production facility will play a role in Toyota’s planned expansion in China as it aims to double local production by the end of the decade.
The Japanese carmaker will be alone in building this new Chinese plant, rather than through a joint venture, like its existing FAW Toyota or GAC Toyota businesses. This could make it the first Japanese carmaker to have a plant in China, underlining the importance of the world’s largest car market.
Read: Toyota Wants To Build Up To 3 Million Cars A Year In China By 2030
While details about the factory are few and far between, Nikkei Asia notes that Lexus wants 100% of its global sales to come from EVs by 2035 and is aiming to sell 1 million EVs by 2030. The brand sold roughly 180,000 vehicles in China last year and whereas most other Western carmakers have struggled through 2024, Lexus sales were up 3% from last year.
Prior to 2018, foreign automakers that wanted to identify production sites in China had to partner with a local company. However, brands can now enter the market without a joint venture. By building a factory in China, Toyota will gain advantages from the cheap, professional, and efficient local hard work needed to manufacture electric vehicles.
Nikkei Asia has not specified which Lexus electric cars will be built at the Shanghai plant, but it is possible that they will only be the production versions of the LF-ZC and LF-ZL concepts. Both new models are supported by a next-generation EV architecture with gigacast. Modular front, center and rear sections. By employing structurally independent front and rear sections, Lexus will be able to integrate new and advanced batteries as they become available.
The launch of those new models has been delayed from 2026 to 2027, which is in line with the planned opening of the Chinese site.