Lexus to resume local production in China after 30 years… First electric SUV to launch in Shanghai in 2027

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Toyota’s luxury brand Lexus will enter a local production system for the first time approximately 30 years after entering the Chinese market. This marks a departure from its previous strategy, which had emphasized domestic Japanese production as a key strength based on Japanese craftsmanship. Toyota plans to officially launch the brand’s first China-made battery electric vehicle (BEV) SUV in 2027 at its wholly owned independent plant located in Jinshan District, Shanghai, China.

The Shanghai plant being activated this time will be operated as a sole foreign-invested enterprise of Toyota, rather than in the form of an existing joint venture, and construction began in 2025. The production facility has introduced aluminum gigacasting technology, which stamps major body components into large integrated parts, and has built a cutting-edge smart manufacturing system in which vehicles autonomously move between processes instead of using traditional conveyor belts. The initial production target is set at approximately 1,000 units per month.

This radical shift to local production by Lexus is analyzed as an essential strategic move to respond to the rapid growth of Chinese domestic electric vehicle brands and intensifying competition in the local market. Lexus’s annual sales volume in China has been on a downward trend, falling from approximately 227,000 units in 2021 to 182,458 units in 2025, while its flagship sedan, the ES, has also failed to escape sluggish sales. The strategy aims to secure price competitiveness by being exempted from the 15th% tariff imposed on imported passenger vehicles through local production.

However, key specifications such as the exact model name of the new electric SUV, battery capacity and chemical composition, driving range per charge, and selling price have not yet been disclosed. As Toyota restructures its production and research and development partnerships in China, attention is turning to whether Lexus will use the Shanghai plant as a springboard to establish a foothold for recovery in the local premium electric vehicle market.

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*This content was translated by AI.View Original