Toyota will build a wholly owned Lexus plant in China
Toyota has officially confirmed that it is setting up a wholly owned Lexus plant in China. The facility will be located in the Jinshan district of Jinshan, southwest of Shanghai and will specialise in the production of battery electric vehicles (BEVs) and batteries.
Here's What We Know
It is unusual for China for a foreign carmaker to set up its own facility without the involvement of local companies. Until recently, foreign companies could only produce cars in the country through joint ventures. Toyota, for example, has joint factories with FAW and GAC, where it produces the bZ3C and bZ3X electric cars. Now, however, like Tesla, the Japanese have been given permission to have an entirely in-house car plant.
What is known about the new plant?
- Production launch - 2027
- Initial capacity - 100,000 cars per year
- Creation of 1,000 jobs in the start-up phase
- Focus on the production of Lexus' new battery-electric model, which will be customised for the Chinese market
Toyota has also signed a co-operation agreement with Shanghai authorities to develop hydrogen power, autonomous driving, battery recycling and reuse.
China is the largest electric vehicle market in the world and Toyota Motor is seriously lagging behind local brands such as BYD, Nio and Geely here. Toyota and Lexus sales in China are declining, so the company is having to adapt and localise production. The company wants to make Lexus an all-electric brand in China, Western Europe and North America by 2030.
Source: Toyota
