Source: Gasgoo
According to foreign media reports, Japanese automaker Toyota Motor plans to build an electric vehicle factory in Shanghai. It is reported that the plant will mainly produce electric models of its luxury brand Lexus.
Nikkei quoted sources as saying that Toyota Motor Shanghai’s new plant plans to start production around 2027. Unlike the previous joint venture model, the new plant will be operated independently.
Japan’s public broadcaster NHK said Toyota is hoping its new plant in China will help it boost sales in the market.
At the same time, Toyota wants to be able to get similar treatment to Tesla in China, including tax breaks, land grants, and policy support (without the need to go through a joint venture partner) to own and control Chinese factories directly.
Thanks to its dominance in electric vehicles, China overtook Japan as the largest auto exporter last year. By contrast, Japanese automakers have lost ground in electric vehicles by focusing on hybrids.
Toyota’s share of the Chinese auto market has fallen, as have other Japanese automakers, while Chinese automakers have been steadily rising. Reuters reported in November that Toyota aims to produce at least 2.5 million vehicles a year in China by 2030 in a bid to regain market share in the country.
As part of that strategy, Toyota launched the Toyota bZ3X electric SUV in China, which has a competitive starting price of $13,800.
