What happened
According to a report from CnEVPost, Toyota plans to begin assembling a Lexus electric SUV in China during the second half of 2027, with an initial production rate of about 1,000 units per month.
The model will be built at a wholly owned plant in Shanghai. The company reportedly intends to raise annual output to tens of thousands of units starting from 2028.
Why it matters
This move reflects Toyota's push to localize electric vehicle production in China's competitive market. A wholly owned Shanghai factory gives Toyota full control over manufacturing and quality, which could help streamline EV production.
Lexus has traditionally imported vehicles into China. Moving to local production may lower costs and shorten delivery times, potentially strengthening Lexus's position against domestic EV rivals — though the actual market impact remains to be seen.
Key facts
Lexus electric SUV production in China is set to begin in H2 2027.
Initial monthly production will be around 1,000 units.
The vehicle will be assembled at a wholly owned plant in Shanghai.
Annual output is planned to rise to tens of thousands of units from 2028.
What to watch next
Whether Toyota officially confirms the reported timeline and any changes to the initial production plan.
How quickly output scales beyond the first phase and how the China-made Lexus EV is received in the market.