The automaker is moving ahead with plans for a wholly owned electric vehicle plant in Shanghai. By Megan Lampinen
Toyota has paid CN¥1.353bn (US$185m) for a 1.13 million sq-metres plot of land in Shanghai to house its upcoming Lexus electric vehicle (EV) plant. Unlike almost all factories run by foreign brands, this one would not be in partnership with a Chinese company but rather fully owned by Toyota. The only other such automotive facility in China is Tesla’s Gigafactory, also located in Shanghai. According to local media, citing the Shanghai Public Resources Trading Centre, the OEM has secured land usage rights for 50 years.
Toyota officially outlined plans for a wholly owned Chinese subsidiary in February 2025. At this time it announced that the unit—to be called Lexus Shanghai New Energy—would build a new EV under the Lexus brand, with production scheduled to begin from 2027 onwards. Initial production capacity is expected to be around 100,000 units per year. While it now has the land secured, it’s still keeping quiet on the specific Lexus model slated for production. It is currently planning to unveil the all-new ES on 23 April at the Shanghai International Automobile Industry Exhibition, and further details could emerge at the show.
Also in 2027 a new Lexus EV is scheduled to enter production at Toyota’s Takaoka plant in Japan. Whether or not it’s the same model slated for China remains to be confirmed. Writing for Automotive World back in February, Ian Henry, Director of Auto Analysis, observed: “The fact that the new project announcement focused on utilising Chinese talent and skills to focus on Chinese consumer demand suggests this will be a distinct project, separate to the existing Lexus product range.”
To date, Lexus has relied exclusively on imports into China. In 2024 it bucked the wider decline in foreign luxury brands, as its sales rose more than 6% to about 180,000 units. In comparison, BMW’s China sales for the year fell 26%, with Mercedes’ down 24%.