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Toyota sets up wholly-owned subsidiary for Lexus Shanghai plant
Toyota has launched a wholly owned subsidiary, Lexus (Shanghai) New Energy Co., Ltd., in Shanghai for developing and selling new energy vehicles and batteries, with a planned local production of 100,000 electric cars annually by 2027.
Key points
- Toyota establishes Lexus (Shanghai) New Energy Co., Ltd. for new energy vehicle production.
- The subsidiary has a registered capital of 107.1 billion yen ($711 million).
- Location is in Shanghai's Jinshan district, covering approximately 113 hectares.
- Initial production capacity is set for 100,000 electric cars per year starting in 2027.
- This plant may exceed the size of Tesla's Shanghai Gigafactory.
Why it matters
- As part of the global shift towards electric vehicles, many automakers are expanding production in China.
- China's push for new energy vehicles aligns with government initiatives for reduced emissions.
- Lexus entering the EV market reflects broader industry trends of traditional brands adapting to new technologies.
Toyota's strategic move to establish a subsidiary in Shanghai exemplifies its commitment to the electric vehicle market, positioning Lexus to capitalize on the growing demand for new energy vehicles in China.