Toyota to build new Lexus EV plant in Shanghai

Feb. 5 (UPI) — Toyota said Wednesday it will build an EV plant in Shanghai, China, to produce a new Lexus brand electric vehicle.

Toyota said in a statement it would establish a “new wholly-owned company” in southwest Shanghai’s Jinshan district that will develop a new battery electric vehicle, or BEV, under the Lexus brand with production set to begin starting in 2027.

Initial production capacity will be around 100,000 units per year with 1,000 jobs created, according to Toyota.

The Jinshan District said in a statement that it welcomes Japanese and other global investors.

China’s EV market demand is high, attracting EV manufacturers from around the world.

Tesla has two plants in Shanghai. Volkswagen signed a memorandum of understanding for a strategic collaboration deal with Chinese EV manufacturer XPENG in January.

In June the European Union decided to impose 38.1% tariffs on Chinese EV makers that took effect in July. That was on EV makers who did not participate in the EU investigation of the EV industry.

Lower tariffs of 21% were placed on EV makers who participated but have not been sampled. The EU took the action based on a finding that government subsidies were leading to an influx of artificially low-priced Chinese EVs.

Toyota also said Wednesday it plans to sign a comprehensive carbon neutrality partnership with the city of Shanghai.

Toyota said it hopes to “contribute to the Chinese government’s goal of achieving carbon neutrality of 2060 in fields like hydrogen energy, automated driving technology and battery recycling and reuse.”