According to media reports, Japanese automaker Toyota plans to build an electric vehicle (EV) factory in Shanghai, China. The factory will primarily produce electric models of its luxury brand, Lexus.
Citing sources, Nikkei reported that the new Shanghai factory is expected to commence production around 2027. Unlike previous joint venture models, this factory will operate independently.
The Japan Broadcasting Corporation (NHK) stated that Toyota aims for its new plant in China to boost the company's sales in the Chinese market.
Additionally, Toyota hopes to secure similar benefits to those enjoyed by Tesla in China, including tax breaks, land grants, and policy support for directly owning and controlling the factory without the need for a joint venture partner.
Toyota has declined to comment on these reports.
China's dominant position in the EV sector enabled it to surpass Japan last year as the world's largest car exporter. In contrast, Japanese automakers, having focused on hybrid vehicles, have lost ground in the EV market.
Toyota's market share in China has declined, mirroring a trend among other Japanese automakers, while Chinese manufacturers have steadily gained traction. Reuters reported in November that Toyota aims to produce at least 2.5 million vehicles annually in China by 2030 as part of its efforts to reclaim market share.
As part of this strategy, Toyota launched the Toyota bZ3X electric SUV in China, priced competitively at $13,800.
