Lexus has officially commenced construction of its new energy vehicle (NEV) manufacturing plant in the Jinshan District of Shanghai. The groundbreaking ceremony for the Lexus New Energy Project Base signifies a major step in the brand’s electrification strategy within China.
The new facility will focus primarily on producing new energy vehicles, with a planned completion date in August 2026 and an anticipated start of production in 2027. The factory is projected to have an annual production capacity of 100,000 units.
Lexus (Shanghai) New Energy Co., Ltd., the entity overseeing the project, boasts a registered capital of 107.1 billion Japanese Yen and spans a total area of approximately 1.13 million square meters. This investment underscores Toyota’s commitment to accelerating its electrification and intelligent transformation strategies, aiming to introduce more electric vehicle models tailored for both the Chinese domestic and international markets.
The new company will leverage Shanghai’s robust industrial chain, advanced logistics network, deep talent pool, and significant market size within the Yangtze River Delta region. This strategic positioning will enable the development of Lexus brand pure electric vehicles that rapidly incorporate the expectations of Chinese customers, often referred to as “China speed.”
This initiative aligns with Toyota China’s previously announced “RCE system,” which empowers Chinese engineers—who possess a profound understanding of local consumer preferences—to serve as chief engineers. This approach integrates Chinese electrification and intelligent elements directly into the development process, consolidating R&D resources with local partners and signaling significant future changes for Lexus’s electric vehicle lineup.
