Toyota Motor Corp. announced on Wednesday (Feb. 5) that it will establish a new Lexus factory in Shanghai as part of its strategy to enhance development and manufacturing capabilities in the Chinese market.
The factory is expected to begin operations in 2027 or later, with a focus on producing electric vehicles (EVs) and automotive batteries. Unlike previous operations in China, this facility will be wholly owned by Toyota, rather than a joint venture.
Initial production capacity is projected to be around 100,000 units per year, and the factory is expected to create approximately 1,000 new jobs at the start of operations.
In related news, Toyota raised its net profit forecast for the fiscal year ending March 2025 to 4.52 trillion yen (about US$29.5 billion), up from its earlier estimate of 3.57 trillion yen, driven by production recovery and a weaker yen.
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