Toyota Motor Corp. has signed a $2 billion deal to build a new electric vehicle (EV) production and R&D hub in Shanghai, signaling confidence in China's rapidly growing new energy vehicle (NEV) market. The wholly owned facility in Jinshan District will focus on Lexus-brand EVs and advanced battery development, with production slated to begin in 2027.
The project, backed by the Shanghai municipal government, underscores China's continued appeal to foreign investors amid global economic uncertainties. Toyota executives emphasized plans to collaborate with domestic suppliers, calling the investment a "strategic move to showcase China's NEV industry chain competitiveness globally."
This follows Tesla's successful Gigafactory project in Shanghai and comes as other global automakers like BMW and Volkswagen expand their Chinese EV operations. Industry analysts note China's NEV sales surged 47% year-on-year in Q1 2024, capturing 41% of total vehicle sales nationwide.
The first-phase development covers 112.8 hectares and expects to create 1,000 jobs initially. Local partners predict the plant will upgrade industrial capabilities across the Yangtze River Delta region while advancing innovations in hydrogen energy and battery recycling.
