Toyota to Build New Factory in China for Lexus Electric Vehicles: Fully-Owned Model
According to Nikkei News, Toyota Motor has decided to build a brand new electric vehicle production plant in Shanghai, China, primarily to produce its luxury brand 'Lexus' models. This investment differs from past joint ventures, as Toyota will construct and operate the plant on its own for the first time.
Several informed sources have revealed that Toyota has already identified the land for the plant within the city of Shanghai, with the factory expected to be operational around 2027, mainly producing Lexus cars for the Chinese market. In 2023, Lexus sold approximately 180,000 vehicles in China.
Currently, Toyota's production in China is managed by joint ventures, with FAW and GAC, forming FAW Toyota and GAC Toyota respectively. In 2023, Toyota produced 1.75 million vehicles in China. However, Lexus models mainly rely on production in Japan and export to the Chinese market, and Toyota is expected to be the first Japanese automaker to build a factory in China independently.
Amid intensifying competition with local electric vehicle manufacturers, other Japanese automakers continue to underperform in China. In 2023, Honda and Nissan's sales volume decreased by more than 10% year-on-year. Mitsubishi Motors announced its exit from the Chinese market, while Nissan closed some factories and reduced production capacity.
In contrast, Toyota's performance is relatively 'resilient'. In 2023, Toyota's sales volume in China only decreased by 2%, and the Lexus brand's sales volume achieved a 3% increase.
According to information, Lexus plans to achieve 100% electric vehicle sales globally by 2035 and aims to sell 1 million electric vehicles by 2030. Starting from 2030, Lexus will electrify all models in the Chinese, North American, and European markets.
