Toyota has reportedly decided to build a new EV plant in China in hopes of clawing back business from BYD and other Chinese-owned rivals eating away at its market share.
According to a report today in Nikkei business daily, the Japanese automaker plans to produce its luxury brand Lexus at the new plant, located in Shanghai, as cited by Reuters. While Toyota hasn't confirmed the news, Nikkei wrote that several sources spoke to the publications about the decision.
For its part, Toyota has several joint ventures in China, but sales come mainly from its joint ventures with GAC Group and FAW Group. This new factory, however, will operate independently, with Toyota reportedly negotiating for treatment similar to what Tesla has enjoyed in the country, including tax breaks, land grants, and policy support to directly own and control factories within the country without the need for a joint venture partner.
Toyota aims to start operations at the new plant around 2027, the report said.
Toyota is the world's biggest automaker but has seen a dip in share in China, as have other Japanese carmakers, as Chinese automakers have been steadily rising. The company has said that it aims to make at least 2.5 million vehicles a year in China by 2030 in hopes of gaining ground against fierce rivals like BYD, Reuters reported in November.
As part of that strategy, the brand just launched pre-orders in China for the Toyota bZ3X electric SUV, which starts at a competitively priced $13,800 (100,000 yuan).
Photo: Toyota
If you're an electric vehicle owner, charge up your car at home with rooftop solar panels. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing on solar, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it's free to use and you won't get sales calls until you select an installer and share your phone number with them.