Recent reports suggest that Toyota Motor Corporation has finalized plans to establish a new electric vehicle (EV) factory in Shanghai, specifically dedicated to producing Lexus-branded models. The factory, which will reportedly be wholly owned by Toyota, is expected to begin operations around 2027, targeting the Chinese market. Sources indicate that Toyota has already secured land for the facility. However, when approached for comment, Lexus China responded, “This is unofficial information, and we have no comment.”


Speculation about Lexus localizing production in China first emerged earlier this year, during negotiations for Toyota’s plant in Shanghai. Reports suggest that Lexus plans to achieve a localization rate of over 95% for parts used in its vehicles, demonstrating a significant commitment to the Chinese market.


At the Beijing Auto Show earlier this year, Lexus unveiled two futuristic concept models: the LF-ZC and LF-ZL. These vehicles serve as precursors to Lexus’ next-generation EV lineup, with production versions slated for release in 2026. This timeline aligns with the projected launch of the Shanghai factory. Both concept cars feature bold, cutting-edge designs and immersive driving experiences, offering a glimpse into Lexus’ vision for a smarter, more advanced future in the EV market.
As Lexus continues to evolve, the rumored Shanghai plant could mark a pivotal step in the brand’s efforts to expand its footprint and cater to the growing demand for premium electric vehicles in China.