Shanghai aims to reclaim China’s carmaking crown with 100,000-unit Toyota plant
The Japanese carmaker plans to tap the local supply chain, logistics network and talent pool to produce Lexus-branded EVs from 2027
Shanghai has taken a big step towards reclaiming the title as the country’s largest vehicle production hub following Toyota Motor’s plan to make cars in the city.
Toyota’s investment “fully reflects China’s attractiveness to foreign investors”, the Shanghai Commission of Commerce said in a statement. “We will help businesses solve problems and provide efficient and relevant services for most foreign companies to invest and develop in Shanghai.”
The Japanese carmaker said in a separate statement that the plant, with an annual capacity of 100,000 units, would tap the local supply chain, logistics network and talent pool to produce Lexus-branded EVs.
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“Shanghai officials have a reason to cheer in drawing Toyota to build cars in the city,” said Gao Shen, an independent analyst. “Automotive is one of the backbone industries of the city’s economy, and Toyota, the world’s top carmaker by production volume, is certainly among the few corporate giants targeted by local officials.”
