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Toyota starts building Lexus plant for electric vehicles in Shanghai
Toyota has commenced construction of its first wholly-owned Lexus electric vehicle plant in Shanghai, set to produce 100,000 vehicles annually, with plans to begin operations in early 2027. This move follows Toyota's strategic expansion in China amid rising competition in the EV market and recent launches of affordable models.
Key points
- Toyota begins construction of plant for Lexus EVs in Shanghai, aiming for 100,000 vehicles/year capacity.
- Initial construction expected to complete by August 2024, with production starting in early 2027.
- The initiative follows Toyota's February announcement to boost EV operations in response to competitive pressures.
- Toyota launched the budget-friendly Bozhi 3X EV in March, addressing rising cost competition from brands like BYD and Geely.
Why it matters
- The news aligns with the growing trend of automakers investing in electric vehicle production as global demand surges.
- Toyota's move represents a shift towards more aggressive competition in China's EV market, crucial for meeting 2025 sustainability goals.
- The initiative reflects a broader trend of establishing localized manufacturing to reduce costs and adapt to regional market demands.
Toyota's establishment of the Lexus EV plant in Shanghai marks a significant step in its strategy to enhance its presence in the competitive Chinese electric vehicle market, responding to increasing consumer demand and market pressures.