Auto manufacturers Toyota and FAW to establish electric vehicle factory in Tianjin
Toyota Expands Electric Vehicle Production in China
Japanese automaker Toyota is strengthening its presence in China's rapidly growing electric vehicle (EV) market. The latest developments include the construction of a new wholly owned Lexus EV plant in Shanghai's Jinshan district, set to commence production in August 2027.
The Shanghai plant, worth approximately 14.6 billion yuan ($2 billion), will initially have an annual capacity of 100,000 units. Notably, it will be the world's first overseas new energy vehicle (NEV) production base established by Lexus, Toyota's luxury division. This move underscores Toyota's confidence in China's manufacturing capabilities and NEV supply chain.
In addition to the Shanghai plant, Toyota is leveraging significant local partnerships and supply chains. For instance, the electric SUV model bZ3X, featuring a China-made electric motor developed in partnership with Japan's Nidec, has been a success, making Toyota the best-selling foreign brand EV in China. Around 99% of the motor’s materials and parts are sourced locally, which helps reduce costs and strengthens supply chain resilience.
Toyota's partnerships in China, such as with FAW Group and GAC Group, are ongoing, although specific details about their current status and expansion plans are not readily available. The recent Shanghai plant investment and strategic local sourcing indicate Toyota's increasing direct investment in China alongside its alliance partnerships, potentially complementing or expanding their existing collaborations.
China, the world's largest automotive market, is one of Toyota's most important global markets. Last year, Toyota sold 1.62 million cars in China, including Toyota and Lexus brands, and saw a 9% increase in sales compared to the previous year, despite a 8.2% decline in the overall Chinese auto market.
Another significant project is the joint venture between Toyota and partner FAW Group for a new electric vehicle plant in Tianjin, China. The plant, with a planned investment of about 8.5 billion yuan ($1.22 billion), will have a manufacturing capacity of 200,000 new energy vehicles per year. However, Toyota has declined to comment on the project.
Toyota continues to consider various measures to meet the needs of developing business in China. The company views China as one of its most important global markets and is committed to expanding its EV footprint in the country.
- Toyota's focus on the electric vehicle (EV) market in China is demonstrated by the construction of a new Lexus EV plant, worth approximately 14.6 billion yuan, set to produce 100,000 units annually.
- This Shanghai plant will be Lexus' first overseas new energy vehicle (NEV) production base, illustrating Toyota's confidence in China's manufacturing capabilities and NEV supply chain.
- The electric SUV model bZ3X, a China-made electric motor collaboration between Toyota and Nidec, has been successful, making Toyota the best-selling foreign brand EV in China.
- Toyota's partnerships and supply chains in China, such as those with FAW Group and GAC Group, are ongoing, although specific details about current status and expansion plans are not readily available.
- China, the world's largest automotive market, is one of Toyota's most important global markets, with Toyota selling 1.62 million cars in China last year, representing a 9% increase in sales.
- Toyota and partner FAW Group are planning a new electric vehicle plant in Tianjin, China, with a manufacturing capacity of 200,000 new energy vehicles per year, although Toyota has declined to comment on the project.
- Toyota views China as one of its most important global markets and is committed to expanding its EV footprint in the country, considering various measures to meet the needs of developing business in China.
