Lexus plans to launch a new electric SUV in China in 2027, with development and production taking place at its new manufacturing facility in Jinshan, Shanghai. It will be the first Lexus vehicle built in China in more than two decades.
Toyota broke ground on the plant in June 2025 and expects the first vehicle to leave the assembly line in fall 2027. Lexus described the facility as its first factory built from scratch outside Japan and said it will combine the company’s global manufacturing capabilities.
The electric SUV will use advanced production techniques, including gig casting, which is intended to reduce costs and accelerate manufacturing. Production is expected to reach around 1,000 vehicles per month in 2027, before increasing to tens of thousands of units in 2028.
The facility is wholly owned by Toyota, allowing Lexus to manufacture vehicles in China independently of its joint ventures. The company said the plant will support its efforts to compete more effectively with local manufacturers such as BYD.
Toyota has faced weaker results in China. Its sales fell nearly 20% last month, marking the eighth consecutive month below the previous year’s level. During the first nine months of 2026, Toyota sold slightly more than 1.05 million vehicles in the country, down 18.9% from the same period a year earlier.
Lexus has not yet released details about the SUV’s battery, driving range or price. The company said the project forms part of its “with China, for China” strategy, which includes using China as a source of innovation and expanding localization to develop models suited to local needs.
The move represents a significant change for Toyota, which is traditionally associated with developing vehicles in Japan. In China, the automaker is placing greater emphasis on local partners, suppliers, technology, batteries and production methods as it seeks to keep pace with the country’s electric-vehicle industry.
Sources: Electrek.