Toyota to produce next-generation electric vehicle in China before Japan
Toyota Motor is shifting its strategy for developing advanced vehicles, planning to build the next generation of electric vehicles (EVs) under the Lexus brand first in China rather than Japan. According to a Nikkei Asia report, production will begin at Toyota's new Shanghai factory by autumn 2027 with an initial output of around 1,000 units per month, scaling up significantly by 2028. The vehicle is expected to incorporate cutting-edge technology such as gigacasting, which reduces weight and improves driving range. This move reflects Toyota's adaptation to market demand in China, where EV sales are growing rapidly—accounting for over three-quarters of global BEV sales last year—and outpacing Japan significantly. The company has also adjusted its product development plans by halting a Japanese project while focusing on SUVs expected to perform well in the Chinese market. Toyota's decision highlights increasing competition and innovation within China’s EV sector, where new models from companies like BYD are gaining traction. This shift aligns with Toyota's broader strategy of expanding production capacity globally as it aims for 10.5 million vehicle output by 2027.
