Toyota Motor Corporation is set to establish a brand new factory in Shanghai, China, by 2027 to manufacture the next generation of electric Lexus cars. This new manufacturing facility will play a crucial role in Toyota's strategy to expand its presence in the Chinese market, aiming to double its local production capacity by the end of the decade.
The Japanese automotive giant Toyota will construct this new factory independently, rather than through a joint venture, which contrasts with its current partnerships in China with FAW and GAC Toyota. This position could make Toyota the first Japanese automaker to own a factory in China, reflecting its significant importance in the world's largest car market.
While specific details about the factory are still sparse, Nikkei Asia reports that Lexus aims to achieve 100% of its global sales from electric vehicles by 2035, targeting one million electric cars sold by 2030. Last year, Lexus sold nearly 180,000 vehicles in China, and despite struggles faced by most Western automakers in 2024, Lexus's sales grew by 3% compared to the previous year.
Before 2018, foreign automakers wishing to establish manufacturing sites in China had to collaborate with a local company. However, brands can now enter the Chinese market without a joint venture. Building this factory will allow Toyota to leverage the local cheap, skilled, and efficient workforce necessary for electric vehicle manufacturing.
Nikkei Asia has not specified which electric Lexus vehicles will be produced at the Shanghai factory, but it could include production versions of the LF-ZC and LF-ZL models. These new models are based on the next-generation electric platform and feature moldable front and rear sections. By utilizing structurally independent front and rear sections, Lexus can integrate new and improved batteries when they become available.
The launch of these new models has been postponed from 2026 to 2027, aligning well with the planned opening of the Chinese site.
Read More
Lexus, renowned for its luxury automotive lineup, captivates car enthusiasts with its stunning sedans and SUVs. The 2025 Lexus LS, in particular, grabs attention for its impressive technology features.
Details can be clicked:
