Toyota has unveiled a significant strategic shift, choosing Shanghai, China, as the manufacturing hub for its upcoming Lexus all-electric SUV. Production of this model is set to kick off in the autumn of 2027 at Toyota's newly established, wholly-owned new energy vehicle plant in Shanghai's Jinshan District. Spanning an impressive 1,692 acres and backed by a hefty investment of 14.6 billion yuan, construction of the plant is slated to begin in June 2025, with completion targeted for August 2026.

The plant aims to achieve a remarkable local sourcing rate of over 95% for its components. Initially, it will boast an annual production capacity of around 100,000 units, translating to roughly 1,000 vehicles rolling off the assembly line each month in its inaugural year. From 2028 onwards, the annual output is projected to surge into the tens of thousands more. Toyota also has plans to hire approximately 1,000 workers for the plant.

This strategic decision by Toyota highlights its strong confidence in China's new energy vehicle market. Last year alone, electric vehicle sales in China soared to 8.57 million units, representing a staggering 60% of the global total. With expectations of continued growth through to 2030, Toyota's move positions it to capitalize on this burgeoning market.