Toyota is said to be preparing to build a new factory in China to produce electric vehicles, with the facility to be set up in Shanghai, the Nikkei has reported.
Sources familiar with the matter told the publication that the Japanese automaker plans to produce EVs from its Lexus luxury brand at the new plant, which is slated to begin operations sometime in 2027, although the project is subject to change due to the potentially fluid demand for EVs.
Toyota has been manufacturing vehicles in China via joint ventures with local manufacturers such as FAW Group and Guangzhou Automobile Group, but will build this factory on its own and operate it independently, the report indicated.
The world’s biggest automaker has reportedly been negotiating for tax breaks, land grants and the ability to own and control assembly plants within China without the need for a joint venture partner, similar to that given to Tesla.
Along with other Japanese carmakers, Toyota as seen market share decline this year due to increasingly aggressive competition from local rivals such as BYD. Its sales in that market dropped by 11% in the first half of this year, but a Reuters report last month indicated that the company aims to ramp up production to at least 2.5 million vehicles a year in China by 2030.
Looking to sell your car? Sell it with Carro.
Haha CCP dah tak anti Jepun ke. Tapi senang gak nak curi teknologi Jp
If you can’t beat em, join em.
Kill’em in their own backyard