Japanese automaker Toyota has announced plans to build a new plant in China that will specialize in the production of electric cars under the Lexus premium brand. As reported by NHK, the company is already working on the acquisition of a plot of land in Shanghai for the implementation of this ambitious project.
The new production should start working already in 2027. By 2035, Toyota plans to make all Lexus models produced worldwide electric. This is part of the company's global strategy to increase its presence in the electric vehicle market, particularly in China, which is one of the most important in the world.
According to experts, Toyota seeks to regain its lost positions in the Chinese market, where competition among electric car manufacturers is growing. Japanese automakers, still focused on traditional internal combustion engine cars, are struggling amid a fierce price war among Chinese electric car makers.
Toyota's move reflects a larger trend among Japanese automakers. So, in October of last year Mitsubishi Motors announced its withdrawal from the Chinese market, and this year Nissan and Honda closed several of their factories in China. For Toyota, this Shanghai plant is part of a strategic recovery in the Chinese market.
The company has already experienced a 9.3% year-to-date sales decline in China, amounting to about 1.41 million vehicles. The opening of a new plant can be an important step in restoring its position in a competitive environment.
