Japanese automotive giant Toyota is set to establish a wholly-owned electric vehicle (EV) manufacturing facility in Shanghai, marking a significant milestone in the company's global strategy. This new venture positions Toyota as the second international automaker, following Tesla, to own and operate an independent factory in China. The agreement between Toyota and the Shanghai municipal government aims to foster a carbon-neutral partnership, focusing on developing and producing Lexus-branded EVs and batteries. Located in Jinshan district, this initiative will leverage the robust industrial infrastructure and logistics network of Shanghai and the Yangtze River Delta region.

The plant is scheduled to commence production in 2027, with an initial annual capacity of approximately 100,000 units. Toyota has emphasized that this project will create around 1,000 new job opportunities during its startup phase. The company's history in China dates back to 1964 when the Toyota Crown model was first introduced. Since then, Toyota has collaborated with local partners like China FAW and GAC Group through joint ventures, delivering reliable products and services to Chinese consumers. With China easing restrictions on foreign ownership in the EV sector since 2018, Toyota now sees an opportunity to expand its presence and adapt to the evolving market dynamics.

Toyota's move underscores the growing importance of China's EV market and reflects the company's commitment to innovation and sustainability. By establishing a wholly-owned plant, Toyota aims to enhance its competitiveness and respond more effectively to consumer demands. This strategic decision also highlights the broader trend of international automakers seeking to capitalize on China's favorable policies and vast market potential. As the world's largest automaker by sales, Toyota recognizes the need to adapt and innovate to maintain its position in a rapidly changing industry. The establishment of this new plant symbolizes Toyota's dedication to advancing sustainable mobility solutions and contributing positively to the global automotive landscape.