Toyota to Build EV Factory in Shanghai, Targeting 2027 Launch

Published: Jul 1, 2025 19:03

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Toyota is constructing an EV factory in Shanghai, aiming to produce 100,000 EVs annually, with deliveries scheduled to commence in 2027. The factory is expected to be completed by 2026. The Japanese automaker has established a subsidiary, Lexus (Shanghai) New Energy, focusing on the development of EVs and batteries. Toyota will be the sole owner of this subsidiary, an unusual move as foreign automakers typically form joint ventures with local enterprises. Tesla is the only foreign-owned automaker in China. Toyota's new initiatives in China and the US are part of its strategy to sell 1.5 million EVs globally, with plans to rapidly introduce its EV brands to Chinese consumers. However, in a highly competitive market, Toyota may face challenges in selling EVs in China, given the presence of over 40 domestic NEV manufacturers.

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