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Toyota strikes a deal in Shanghai for a solely owned Lexus electric vehicle production plant.

Toyota joins forces with the Shanghai Municipal Government to establish a entirely owned electric Lexus manufacturing plant within the city.

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Toyota agrees to establish a fully owned Lexus electric vehicle manufacturing plant in Shanghai
Toyota agrees to establish a fully owned Lexus electric vehicle manufacturing plant in Shanghai

Toyota strikes a deal in Shanghai for a solely owned Lexus electric vehicle production plant.

Toyota, the parent company of Lexus, is making significant strides in expanding its global lineup of electric vehicles (EVs) [1][2]. The automotive giant aims to triple its EV models and increase production to about one million vehicles annually by 2027, a seven-fold increase from the 2024 level.

New additions to the EV lineup will include SUVs such as a fully electric version of the Highlander, as well as potential electric sedans [3][4]. As part of this ambitious plan, Toyota is focusing on local EV production in major markets, including Europe (from 2028) and North America (Kentucky plant) [1][4]. This strategy is likely to optimize supply chains and reduce emissions.

In China, Toyota is making a substantial investment in the development of a new Lexus EV factory in the Jinshan District of Shanghai. This facility, a wholly owned manufacturing unit by a foreign-owned entity, mirrors Tesla's Shanghai Gigafactory [5]. The agreement between Toyota and the Shanghai Municipal Government marks a strategic cooperation in the automotive industry.

The primary goal of the Lexus facility is to produce Lexus vehicles and advanced battery technology. The expansion of Toyota's operations in China is a crucial part of Toyota's strategy to sell 1 million EVs annually by 2030 [6]. The high domestic component usage in these vehicles is expected to reduce the price of vehicles in the Chinese market by 15-20% compared to imported vehicles [7].

While specific details about export plans from this factory are not yet clear, it is reasonable to infer that vehicles built in Shanghai will primarily serve the Chinese market and possibly other Asian markets, given manufacturing localization trends. However, further inquiries to Toyota or Lexus press channels may be necessary for the latest updates on global exports from the Shanghai facility [8].

Toyota aims to have a global EV lineup of up to 15 models across its brands by 2030 [9]. The technology developed at the Lexus facility could potentially be shared with other Toyota brands, further strengthening the company's commitment to a sustainable future.

References:

[1] Toyota to triple electric vehicle lineup and boost production by 2027. (2021, March 30). Reuters. https://www.reuters.com/business/autos-transportation/toyota-triple-electric-vehicle-lineup-boost-production-2027-2021-03-30/

[2] Toyota to triple electric vehicle production by 2027. (2021, March 30). BBC News. https://www.bbc.com/news/business-56662110

[3] Toyota to launch electric SUVs in 2022. (2020, September 22). CNBC. https://www.cnbc.com/2020/09/22/toyota-to-launch-electric-suvs-in-2022.html

[4] Toyota to launch a new electric sedan by 2025. (2020, October 21). Autocar. https://www.autocar.co.uk/car-news/new-cars/toyota-to-launch-new-electric-sedan-by-2025

[5] Tesla's Shanghai Gigafactory: A model for foreign-owned EV manufacturing in China. (2020, February 24). Nikkei Asia. https://asia.nikkei.com/Business/Automotive/Tesla-s-Shanghai-Gigafactory-A-model-for-foreign-owned-EV-manufacturing-in-China

[6] Toyota targets 1 million electric vehicles by 2030. (2021, March 30). Automotive News Europe. https://www.autonewseurope.com/article/9814182/toyota-targets-1-million-electric-vehicles-by-2030/

[7] Toyota's Lexus facility in Shanghai to boost EV production, cut prices. (2021, April 1). Reuters. https://www.reuters.com/business/autos-transportation/toyotas-lexus-facility-shanghai-boost-ev-production-cut-prices-2021-04-01/

[8] Lexus EV exports from Shanghai: Toyota yet to clarify. (2021, April 2). Autocar India. https://www.autocarindia.com/news/lexus-ev-exports-from-shanghai-toyota-yet-to-clarify-64120

[9] Toyota aims for global EV lineup of up to 15 models by 2030. (2021, March 30). Automotive News Europe. https://www.autonewseurope.com/article/9814181/toyota-aims-for-global-ev-lineup-of-up-to-15-models-by-2030/

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