Toyota to Build Lexus Electric SUV in Shanghai by Autumn 2027

Toyota Motor Corporation plans to begin production of its next-generation battery electric vehicle in China in autumn 2027, launching it under its premium Lexus brand as an SUV model. The new vehicle will be built at a new factory in Shanghai, with initial monthly output of approximately 1,000 units. From 2028, Toyota intends to expand annual production to tens of thousands of units. This will be the first time Toyota has launched a model equipped with its latest technology outside Japan first.

The vehicle will adopt advanced manufacturing techniques such as gigacasting, which forms large aluminum components in a single piece, reducing the number of body parts. This process helps improve body rigidity and reduce assembly steps. Toyota has traditionally developed and mass-produced vehicles with advanced technology first in Japan, including the Prius hybrid and the Mirai fuel cell vehicle, before gradually rolling them out to overseas markets.

According to data released by Toyota, including its subsidiary Daihatsu Motor, global sales in July 2026 fell 5.3% year on year to 912,683 units, while production declined 1.4% to 934,953 units. Among these, sales of Toyota and Lexus brands in China dropped 24% in the month. Meanwhile, due to Middle East turmoil disrupting key supply routes and pushing up oil prices, Toyota's sales in the region fell nearly 45% year on year in July.