Toyota to Produce Next-Gen Electric SUV in China Under Lexus Brand
Toyota will begin producing its next-generation electric vehicle in China, breaking from its usual practice of launching new technology in Japan first. The new model, a sport utility vehicle, will be manufactured at the company's Shanghai plant.
Toyota Motor Corporation plans to start production of its next-generation electric vehicle in China, a significant departure from its traditional approach of debuting new technologies in Japan. The upcoming model, identified as an SUV and branded under Lexus, is scheduled for assembly at the company's Shanghai facility beginning in the fall of 2027.
Initial production is slated for approximately 1,000 units per month, with plans to scale up to tens of thousands annually by 2028. The vehicle will feature integrated die-casting technology for its body components, potentially reducing weight by up to 20% and increasing range by an estimated 4-5%. This strategic move into China highlights the immense scale and importance of the Chinese electric vehicle market.
The decision to focus on an SUV body style aligns with consumer preferences in China, where the company previously halted development of a pure electric coupe in Japan to prioritize SUVs. Toyota currently offers an entry-level SUV and a sedan in the Chinese market.
This investment in Chinese production is expected to leverage cost benefits from locally sourced batteries, alongside savings from the weight reduction and simplified assembly offered by the integrated die-casting process. The choice to debut with the Lexus brand is strategic, as its smaller production volumes and higher profit margins are better suited for piloting and gradually expanding this new manufacturing approach.