ALBAWABA – Toyota, the Japanese multinational automotive manufacturer, announced plans to produce electric vehicles under its Lexus luxury division in China, despite potential tariffs and regulations.
Lexus production in China
Toyota stated plans to build an electric vehicle plant in Shanghai, China to produce Lexus, the luxury vehicle division of the Japanese automaker Toyota Motor Corporation. This decision comes in a time where the automotive major brands are struggling amid the traffic and regulations in China.
According to Nikkei, the Japanese newspaper, Toyota plans to launch its new plant in China by 2027. The company will operate without a local partner, making it the first Japanese automaker to establish a plant in China, according to sources.
Toyota and other companies are struggling
Toyota is expected to struggle with the tariffs and new regulations imposed by President-elect Donald Trump, along with other major automotive companies. However, the company decided to open this plant in China to exclusively manufacture Lexus electric models, which are sold only in China.
Toyota will operate without a local partner, making it the first Japanese automaker to establish a plant in China, according to sources. (Toyota)
It is worth noting that Japan and China’s automotive sector is facing significant struggles and challenges amid the potential tariffs and regulations introduced by Trump, the rise of the electric vehicle industry, and the fluctuation of global fuel prices.
