Toyota has announced that it will be signing a comprehensive partnership agreement with the Shanghai municipal government in China for carbon neutrality, and to that end the Japanese manufacturer will establish a wholly-owned company in the Jinshan District in Shanghai for the development and production of battery-electric vehicles and batteries.
This follows a report that emerged last December that Toyota is preparing to build an EV factory in China, and the latest announcement by Toyota confirms that the newly-formed company will be developing a new battery-electric vehicle under its Lexus brand.
Production of the upcoming Lexus EV will begin “from 2027”, at a production site with an initial production capacity of 100,000 units a year. Through this, around 1,000 new jobs are to be created in its start-up phase, says Toyota.
Through the partnership, Toyota aims to contribute to the Chinese government’s goal of achieving carbon neutrality by 2060 in fields including hydrogen energy, automated driving technology, and battery recycling and reuse.
Toyota presently manufactures vehicles in China through joint ventures with local manufacturers including the FAW Group and Guangzhou Automobile Group, and this upcoming plant in Jinshan will be established as an operation wholly-owned by the Japanese manufacturer.
Market share in China for Toyota, along with other Japanese carmakers have declined in the face of stronger competition from domestic rivals such as BYD, and Toyota’s share in China dropped 11% in the first half of 2024, according to Nikkei. In response, Toyota aims to increase production to at least 2.5 million vehicles a year in China by 2030, according to a report by Reuters.
Looking to sell your car? Sell it with Carro.
Look nice! But I believe the selling sold is even nicer!
oh the japs have thrown away their pride ah so fast? isn’t it they previously announce that they will not produce any lexus in china because of their low production standards?