Toyota to build luxury Lexus electric car factory in Shanghai

Japanese automaker Toyota said on February 5 it will build an electric vehicle factory in Shanghai for its Lexus luxury brand, while raising its profit forecast for this year to nearly $30 billion.

Toyota Motor Corp.'s next-generation Lexus electric vehicle model. (Photo: Kyodo)

“We have decided to establish a wholly owned company to develop and manufacture batteries and Lexus-brand battery electric vehicles (BEVs) in Shanghai, China,” Toyota said.

Toyota aims to start production there after 2027 and says the new plant will create 1,000 new jobs, with an annual production capacity of about 100,000 vehicles.

This will be the second wholly foreign-owned electric vehicle factory in China after Tesla's Shanghai factory.

Other foreign companies that produce cars in the country have to enter into joint ventures with Chinese companies.

On the same day, February 5, Toyota predicted to achieve net profit of 4.52 trillion yen ($29.5 billion) this fiscal year, up from the previous forecast of 3.57 trillion yen.

Toyota has been “extremely cautious about expanding its business in China due to concerns about risks such as technology leaks,” said Tatsuo Yoshida, senior auto analyst at Bloomberg Intelligence.

However, he said the company has now shifted to developing technology and products suitable for the local market, ensuring acceptance by Chinese consumers.

Last year, China overtook Japan as the world's largest car exporter, thanks to its dominance in electric vehicles.

The Chinese government has supported the development and production of less polluting battery-powered vehicles, an area in which Chinese manufacturers such as BYD are leading the way.

Therefore, Mr. Yoshida commented that Toyota's decision to build a factory in Shanghai "is a reasonable strategic move."

He believes that Toyota's ability to make proactive investments in electrification (especially BEVs) and its business in China, even when other auto companies are hesitant, is a strength of this "big guy", stemming from its abundant human and financial resources.

Toyota said on February 5 that its new battery plant in the US state of North Carolina is ready to begin production. The company said the nearly $14 billion plant will begin supplying batteries for electric vehicles in North America in April./.

According to VNA

Source: https://baothanhhoa.vn/toyota-xay-dung-nha-may-xe-dien-hang-sang-lexus-tai-thuong-hai-238804.htm