Toyota Motor Corporation is set to build an electric vehicle (EV) factory in Shanghai, primarily producing Lexus EV models. This new plant is expected to begin operations around 2027 and will operate independently, unlike previous joint ventures. Toyota aims to enhance its market share in China, seeking benefits similar to those enjoyed by Tesla, such as tax breaks and land grants, along with direct ownership of the factory without a local partner.
China's dominance in the EV sector has made it the world's largest car exporter, surpassing Japan. Japanese automakers, including Toyota, have lost ground in EVs due to their focus on hybrids. Toyota's market share in China has declined, prompting the company to target an annual production of at least 2.5 million vehicles in China by 2030. As part of this strategy, Toyota has launched the competitively priced bZ3X electric SUV at $13,800.
