Lexus is poised to undertake a significant transformation in its Chinese operations, marking a pivotal shift in the company's commercial history in the country. The Toyota premium brand is set to abandon a business strategy that has remained unchanged for nearly three decades, instead opting to manufacture its vehicles domestically in China.
The Kia EV6 model for 2027 will maintain its current lineup of seven trim levels without any changes.
A highly anticipated electric SUV is set to make its debut in 2027, marking a significant milestone for the company's operations in Shanghai, where a state-of-the-art industrial facility will serve as the production hub for this innovative vehicle.
Ford has conceptualized a vehicle that remains stationary, with the primary intention of deterring theft.
The decision to produce electric vehicles in a specific market is not a random choice. Local manufacturers of electric vehicles are gaining traction among luxury buyers, while Lexus is experiencing a decline in one of its key markets. By establishing a presence in this market, Lexus can potentially adjust its pricing strategy and respond more swiftly to its competitors.
Construction on the Jinshan plant commenced in 2025, marking a significant shift in Toyota's ownership structure in China. Notably, the Japanese automaker will retain sole control of the facility, diverging from its traditional joint venture model with Chinese partners. This new arrangement is expected to enable Lexus to operate independently of the existing joint ventures established by the company in the country.
The project incorporates significant advancements in the manufacturing process for the SUV. Utilizing a cutting-edge technique known as gigacasting, the vehicle's body will be constructed from large aluminum sections, produced through a single, high-temperature melting operation. This innovative approach streamlines production by minimizing components, reducing assembly complexity, and lowering structural weight.
The facility will be designed to operate without conventional transportation methods, enabling vehicles to travel autonomously between various workstations. This autonomous system is intended to streamline industrial operations by reducing complexity.
Lexus has set an initial production target of around 1,000 units per month, with the potential for a significantly higher annual output of up to 100,000 vehicles. The company is currently reserving many of the model's features for future release.
Details regarding the vehicle's commercial name, pricing, mechanical setup, and battery life remain undisclosed. Furthermore, it has not been confirmed whether the vehicle will utilize solid-state batteries, a technology that Toyota is currently developing with plans to integrate it into its electric vehicles between 2027 and 2028.
The company is considering battery options that incorporate NCM or LFP chemicals, which are widely used in the Chinese market, but has not officially announced any alternative choices.
Lexus's sales in China have declined significantly over the past few years, with a notable drop from approximately 227,000 vehicles in 2021 to around 182,458 units in 2025. Furthermore, the ES model is currently facing challenges, with a 26% decrease in deliveries between January and August 2026, resulting in 57,800 vehicles sold during this period.
Domestically producing passenger vehicles will enable the company to circumvent the 15% tariff imposed on imported cars, thereby gaining a competitive advantage over international brands such as NIO and Zeekr.
China's passenger car market witnessed a significant shift in 2025, with electric vehicles and plug-in hybrids representing approximately 54% of total sales, underscoring the increasing influence of emerging technologies.
Toyota's industrial partnerships are undergoing a significant restructuring, with the company's arrival in Shanghai marking a pivotal moment in this process. As part of this shift, Guangzhou Automobile Group (GAC) has proposed acquiring a 50% stake in FAW Toyota, which is currently owned by FAW. This move is expected to foster closer technological, industrial, and commercial ties among the three companies.
Toyota has been integrating solutions developed in China into its vehicle lineup, with one notable example being the bZ3 model, which utilizes battery technology supplied by BYD.
