Toyota Launches New EV Plant in Shanghai
(MENAFN) Japanese automotive giant Toyota Motor Corporation has reached a $2 billion deal to build a fully-owned electric vehicle (EV) plant in Shanghai, according to state media reports.
The agreement, signed on Tuesday, is part of Toyota’s strategy to strengthen its position in China, the world’s largest car market, amid growing trade tensions with the United States. The deal, reported by a Chinese media outlet, sees Toyota committing 14.6 billion yuan (approximately $2 billion) to the project, which will focus on the research, development, production, and sale of Lexus EVs and EV batteries.
This move follows Honda Motor's recent announcement of plans to shift part of its production to the US in response to tariffs introduced by the Trump administration. The tariffs, primarily affecting vehicles, steel, and aluminum, have led to talks between Japan and the US after a temporary reprieve was granted to all nations except China.
Toyota's new venture in Shanghai aims to set new standards in carbon neutrality, with groundbreaking technologies expected to have a major impact both in China and worldwide, according to Tatsuro Ueda, CEO of Toyota’s China region. This marks another significant new energy vehicle (NEV) project in Shanghai, following the success of Tesla’s Gigafactory.
Construction of the plant is slated to begin in June, with production expected to start by 2027. Although Toyota did not disclose the plant's production capacity, it previously estimated that initial output would be around 100,000 units annually, creating roughly 1,000 jobs during the start-up phase.
Meanwhile, China faces steep U.S. tariffs of up to 245% on imports, while Beijing has retaliated with tariffs of 125% on US goods.
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