Toyota To Open New EV Production Facility In Shanghai

Toyota Motor Corporation TM has unveiled a major partnership with the Shanghai municipal government to support carbon neutrality efforts.

This collaboration will concentrate on key areas such as hydrogen energy, self-driving technology and battery recycling.

As part of the agreement, the company will set up a fully-owned subsidiary in Jinshan District, Shanghai, to address the increasing demand for new energy vehicles in China.

Toyota’s upcoming subsidiary will be central to manufacturing battery electric vehicles (BEVs) and batteries.

The company plans to introduce a new Lexus BEV model, with production slated for 2027. At the outset, the facility is expected to produce 100,000 units annually, while also creating approximately 1,000 jobs during its initial phase of operation.

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Toyota sold over a million electrified vehicles in the U.S., including nearly 900,000 Toyota brand vehicles and over 100,000 Lexus brand vehicles, marking a growth of over 50% year-on-year.

The company retained its position as the world's best-selling automaker in 2024 with 10.8 million sales, out of which 4.5 million were electrified vehicles.

Electrified vehicles encompass a range of types, including hybrid, plug-in hybrid, battery electric, mild hybrid and fuel-cell electric vehicles.

The company raised its full-year operating income forecast by 400 billion yen ($2.62 billion), bringing the total to 4,700 billion yen for the fiscal year ending in March 2025.

Toyota’s latest initiative supports China’s ambition to reach net-zero emissions by 2060. Through established collaborations with major local players like China FAW Group Co. and Guangzhou Automobile Group Co., Toyota aims to enhance its footprint, offering environmentally friendly solutions while playing a key role in China’s shift toward sustainability.

Price Action: TM shares are trading higher by 2.63% at $192.50 in premarket at the last check Wednesday.

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