Automotive
Toyota to build new Lexus electric SUV in China ahead of Japanese market
The automaker is shifting first-stage EV production for a new Lexus SUV to Shanghai to compete with Chinese rival manufacturers.
The short version
- Toyota plans to launch and manufacture a new Lexus electric SUV in China before introducing it in Japan.
- Production is scheduled to begin at a new Shanghai facility next fall, using advanced techniques like gigacasting to lower costs.
- The move comes after Toyota experienced an 18% decline in vehicle sales in China through July compared to the same period in 2025.
Key facts
- Toyota plans to produce a new electric Lexus SUV at a new manufacturing facility in Shanghai, China, starting next fall.[Electrek]
- Initial output at the Shanghai plant is targeted at approximately 1,000 vehicles per month next year, with plans to scale to tens of thousands in 2028.[Electrek]
- The new EV model will incorporate gigacasting and other advanced manufacturing methods to reduce costs and accelerate assembly.[Electrek]
- Toyota's sales in China fell 18% through July compared to the same period in 2025, totaling under 810,000 vehicles.[Electrek]
What remains uncertain
- Whether construction of the Shanghai plant completed on schedule this month remains unverified.[Electrek]