Toyota to establish wholly owned EV factory in China

Published 28/04/2025, 11:16
© Reuters.

Investing.com -- Toyota Motor (NYSE:TM) Corp. is on track to become the second automaker, following Tesla (NASDAQ:TSLA) Inc., to establish a wholly owned factory in China. This development comes after Toyota formally agreed this week to construct a new electric vehicle (EV) plant near Shanghai.

Toyota, the world’s top automaker, plans to manufacture battery-powered EVs for its Lexus brand at the new facility. The production is expected to commence in 2027, with an initial annual output of 100,000 units.

The establishment of the new plant will also create approximately 1,000 new jobs. The plans were initially reported by Bloomberg last year.

The exact investment amount by Toyota has not been revealed. However, reports from Japanese and local media suggest the investment is around $2 billion. These reports also suggest that the new factory might reduce production costs by up to 20%.

A Toyota representative confirmed on Thursday that a signing ceremony took place in Shanghai between Toyota and city officials. The representative also announced that construction of the new facility will begin in June.

In related news, Lexus unveiled a new version of its ES luxury sedan at the auto show in Shanghai this week. The new vehicle will initially be sold to Chinese buyers and is available as a hybrid or fully battery-powered vehicle. The plan is to eventually sell this car in other major markets.

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