Lexus held the groundbreaking ceremony for its new electric vehicle manufacturing base in Jinshan District, Shanghai today. From signing to groundbreaking, the project took just over two months, marking a substantial step forward in Lexus’s electrification strategy in China.
The project boasts an investment of over 14 billion RMB, with a planned annual production capacity of 100,000 vehicles. It is expected to be completed by August 2026 and officially commence production of its first model in 2027.
As Toyota Motor Corporation’s luxury brand, Lexus was established in 1989. After officially entering the Chinese market in 2005, it maintained a pure import sales model for nearly 20 years, accumulating sales of over 2 million units.
In 2024, its sales in China exceeded 180,000 units, but its electrification transition has lagged significantly—electric models account for less than 5% of sales, far behind German competitors like Mercedes-Benz and BMW.
Notably, this is the second foreign wholly-owned automaker introduced to Shanghai after Tesla.
The project adopts a “triple partnership” model: the Shanghai municipal government signed a strategic cooperation agreement with Toyota Motor Corporation, the Jinshan District government signed a memorandum of understanding with Toyota China, and the Jinshan New Development Company partnered with Lexus (Shanghai) New Energy Co., Ltd. on an investment service agreement.
Although production won’t begin until 2027, the company has pledged to respond to market demands at “China speed.”
It is worth noting that the future production line will utilize over 95% domestically sourced components, which will not only help significantly reduce costs but also greatly enhance the market competitiveness of the vehicles. Additionally, the R&D team will focus on the usage habits and demands of Chinese consumers, developing more localized exclusive features to better align with customer preferences and accelerate Lexus’s electrification transformation in China.
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