Japanese automaker Toyota plans to build an electric car factory in Shanghai. It is reported that the factory will mainly produce electric models of its luxury brand Lexus.
Nikkei News quoted sources as saying that Toyota’s new Shanghai factory is scheduled to start production around 2027. Unlike the previous joint venture model, the new factory will operate independently.
The Japan Broadcasting Association (NHK) said that Toyota hopes that the construction of its new factory in China will help the company increase sales in the Chinese market.
At the same time, Toyota hopes to receive similar treatment to Tesla in China, including tax breaks, land grants, and policy support for direct ownership and control of Chinese factories (without going through a joint venture partner).
Toyota declined to comment on the above report.
Thanks to China’s dominance in the electric vehicle field, China replaced Japan as the largest automobile exporter last year. In contrast, Japanese automakers have lost their advantage in the electric vehicle field due to their focus on hybrid vehicles.