Lexus is set to launch production of a new battery-electric SUV at its dedicated facility in the Jinshan District of Shanghai. The plant, which Toyota Group began constructing in 2025 without a local joint-venture partner, is designed to reach an annual capacity of 100 000 vehicles and employ 1 000 staff members.
Manufacturing at the new site is scheduled to commence in autumn 2027. Initial output is projected at approximately 1 000 units per month, with plans to scale production to tens of thousands of vehicles annually by 2028. This model marks a shift in Toyota's strategy, prioritizing local development for the Chinese market.
The vehicle will be produced using gigacasting technology, a process that forms multiple aluminum body parts into a single piece. This method, previously adopted by Tesla and Volvo, is expected to reduce component weight by up to 20 percent, potentially increasing the vehicle's range by several percent.
This project represents a departure from Toyota's traditional approach of developing vehicles for Japan and the US before adapting them for other regions. Previously, the company produced electric vehicles for China only through joint ventures with FAW and GAC, such as the bZ3C and bZ3X models.
