Lexus initiates construction on an electric vehicle manufacturing facility in Shanghai, aiming for production commencement in 2027.
Lexus Begins Construction of EV Factory in Shanghai
Toyota, the world's largest automaker by sales volume, has taken a significant step in its electrification journey with the commencement of construction on a wholly-owned electric vehicle (EV) factory in Shanghai, China. The factory, located in the Jinshan district, will be Lexus's first overseas new energy vehicle (NEV) production base.
The project, announced in April 2022, was a result of a cooperation agreement signed between Toyota and Shanghai authorities. In early April of the same year, Lexus acquired a 1.13 million square meter industrial land plot in Jinshan district for RMB 1.353 billion ($189 million). The land, approved for use in NEV manufacturing, lithium-ion battery manufacturing, and other battery manufacturing, will serve as the foundation for the new factory.
The groundbreaking ceremony for the plant took place on June 27, 2025, marking the start of the construction phase. The factory is expected to be completed in August 2026, with production scheduled to begin in 2027. The factory's initial production capacity is about 100,000 units per year, creating approximately 1,000 new jobs during the initial production phase.
The factory will produce Lexus-branded electric vehicles and batteries, with the first Lexus-branded battery electric vehicle (BEV) model scheduled to begin production in 2027. The vehicles produced at the factory will be tailored for both the Chinese domestic and international markets.
This move by Lexus marks another step in its efforts to establish a wholly-owned factory in China, following the relaxation of restrictions in the pure electric vehicle sector and the passenger vehicle manufacturing sector by China in 2018 and 2022, respectively. The factory will also help Toyota accelerate its transition towards electrification and smart cars.
With China being Toyota's third-largest market, trailing only the US and Japan, the new factory is expected to play a crucial role in Toyota's growth in the region. Lexus will become the second foreign automaker, after Tesla, to establish a wholly-owned automotive factory in China.
The land acquisition was announced by the Shanghai Public Resources Trading Center, with the exchange rate used in the transaction being RMB 7.1706 per dollar. This move by Lexus further solidifies Toyota's commitment to the Chinese market and its pursuit of a sustainable future in the automotive industry.
- The construction of Toyota's automotive production base, focused on electric vehicles, has commenced in Shanghai, China, marking a significant step in their electrification journey.
- The project, resulting from a cooperation agreement with Shanghai authorities, includes the production of lithium-ion batteries, besides electric vehicles at the new factory.
- The factory's initial production capacity is approximately 100,000 units per year, potentially creating around 1,000 new jobs in the initial production phase.
- Lexus' first overseas new energy vehicle production base will produce both Chinese domestic and international market-tailored electric vehicles and batteries.
- The factory's first Lexus-branded battery electric vehicle model is scheduled to begin production in 2027, contributing to Toyota's transition towards electrification and smart cars.
- China is Toyota's third-largest market, following the US and Japan, and the new factory is anticipated to play a crucial role in Toyota's growth in the region.
- With Lexus becoming the second foreign automaker, after Tesla, to establish a wholly-owned automotive factory in China, it exhibits Toyota's continued commitment to the Chinese market and sustainability in the societal aspects of transportation and lifestyle.
- This luxurious brand's move further solidifies Toyota's investment in the Chinese market and technology, paving the way for a sustainable future in the automotive industry, particularly in electric vehicles.
