Toyota will build its first independent manufacturing plant in China, earmarked to produce Lexus EVs like the RZ. According to a report in Automotive News citing Nikkei, the Japanese auto giant will start operations in Shanghai sometime in 2027, a move that should make it easier to sell vehicles tailored to the Chinese auto market. Toyota expects to build around 2.5 million cars a year in China by 2030, and the local facility might make it easier to hit that goal by avoiding the nation’s taxes on imported goods.
Toyota
Toyota is a Japanese automaker founded in 1937 that has developed a reputation for reliability across a multitude of segments, from sports cars and family sedans to pickup trucks and off-roaders. Famous models from the brand include the Hilux, Land Cruiser, Camry, Crown, and Corolla, the latter being the world’s best-selling vehicle nameplate, with more than 50 million Corolla-badged vehicles being sold since it was first introduced. Toyota typically competes in the mainstream market, but is also famous for launching Lexus as a luxury sub-brand to take on Mercedes-Benz.
- Founded
- August 28, 1937
- Founder
- Kiichiro Toyoda
- Headquarters
- Aichi, Japan
- Current CEO
- Koji Sato
Economies Of Scale (And Geography)
Amid the threat of tariffs on Chinese-made electric vehicles – the Biden administration delayed its planned 102-percent tariff, but the incoming Trump team may reinstate it – Beijing has considered making it more difficult for foreign-made vehicles to sell in the country. Many automakers already develop and produce vehicles in China on their own or through joint ventures, but this would be the first independently owned and operated facility that Toyota runs in the country.
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The move would help Toyota’s local executives have more input on the development of Chinese-market vehicles, as well as streamline the production process to help cut costs. The Nikkei reports that the facility would build Lexus-branded EVs, although Toyota would not confirm that fact on its own, nor would it cop to a specific manufacturing target.
In It To Win It
Toyota is one of the few foreign manufacturers to focus more effort in locally produced EVs. Acura, for example, pulled the ripcord on its Chinese operations last year, after Honda’s joint venture with GAC concluded. The Chinese market is rich with locally built, reasonably priced EVs such as those from BYD, making it hard for foreign automakers to compete. Toyota, however, announced its plans to remain engaged in China, including two new EVs that are designed specifically for the market.
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For its part, the Chinese auto industry also has grand hopes for the future. BYD’s Denza brand plans on marketing a 911-rivaling sports car in Europe despite that region’s volatility regarding tariffs. The luxurious EV family might also spawn a shooting brake that’s headed for a global market, potentially even including the US.
Source:
Nikkei via
Automotive News
News Summary:
- Toyota Will Build Local-Market Lexus EVs In Shanghai, China
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