On June 27, the Lexus New Energy Project officially entered the construction phase as excavators began operations in the Shanghai Bay Area High-Tech Zone. As a core part of Toyota Motor Corporation's electrification strategy, the project is scheduled for completion in August 2026 and mass production in 2027, with an initial annual capacity of 100,000 vehicles. This milestone not only marks a substantial breakthrough in the localization of Lexus production but also injects strong momentum into Jinshan District's goal of developing a RMB 100 billion-level new energy vehicle (NEV) industrial cluster.
Since the signing of a strategic cooperation agreement between the Shanghai Municipal Government and Toyota on April 22, the project achieved groundbreaking in just over two months-a speed now dubbed the "Lexus Pace" for major foreign investment projects. Jinshan District implemented a three-tier service framework-city-level coordination, district-level project tracking, and dedicated service personnel-to ensure full support across all stages from business negotiations to construction. For example, local market regulators completed the registration of "Lexus (Shanghai) New Energy Co., Ltd." in just one day.
As a key initiative in Toyota's global electrification roadmap, the fully-owned Lexus plant in Jinshan will initially cover 1,692 mu (about 112.8 hectares), with a total investment of RMB 14.6 billion. The project will simultaneously advance pure electric vehicle R&D, solid-state battery manufacturing, and battery recycling technologies.
Notably, over 95% of the project's supply chain will be localized. Leading companies in the Yangtze River Delta region have already passed Toyota's factory audit process, covering critical areas such as battery systems and auto components.
The Lexus project is expected to be a turning point for Jinshan's industrial upgrade, delivering not just direct investment but also a significant technology spillover effect that will elevate the entire regional supply chain. Several supply chain partners have already expressed clear intentions to set up operations nearby, and the project is anticipated to generate over 1,000 new jobs.
Once operational, the plant will serve both domestic and international markets, forming a complete R&D-production-export cycle. This will not only reinforce Shanghai's position as a global automotive innovation hub but also enable the Yangtze River Delta NEV industry to transition from a "manufacturing stronghold" to a "technology powerhouse."
From the Tesla Gigafactory to Lexus' wholly-owned project, Shanghai is embracing global carmakers with an open attitude, driving the transformation of China's auto industry. As the "Lexus Pace" becomes the new norm, this land is poised to give rise to more new paradigms that shape the future of the global automotive sector.
