Toyota Motor Corp. and the Shanghai municipal government have sealed a 14.6 billion yuan ($2 billion) agreement to build a wholly owned electric vehicle (EV) plant in Jinshan District. The new facility will focus on researching, producing, and selling Lexus EVs and advanced EV batteries, marking Toyota’s biggest EV investment in China to date.
Construction kicks off this June, with production set to start in 2027. Toyota’s initial target is 100,000 vehicles per year, alongside 1,000 new jobs in the start‑up phase. The project stretches across 112.8 hectares, underlining Shanghai’s push to expand high‑level opening up and create a world‑class new energy vehicle (NEV) cluster.
Tatsuro Ueda, CEO of the China Region and chairman of Toyota Motor (China) Investment Co., said the plant aims to be a global carbon neutrality model. "We look forward to collaborating with local suppliers to showcase the competitive advantages of China’s NEV industry chain and promote Chinese technologies worldwide," he added.
Shanghai’s NEV boom is no one‑off: Tesla’s Shanghai Gigafactory and its new Megafactory for energy‑storage batteries have already reshaped the local industry. In March, BMW teamed up with Huawei on an in‑car digital ecosystem for China, while Volkswagen Group and First Automobile Works agreed to roll out 11 new NEV models starting in 2026.
China’s NEV market is surging. Sales jumped 47.1% year on year to 3.08 million units in Q1, making up 41.2% of total vehicle sales, according to the China Association of Automobile Manufacturers. Researcher Bai Ming from the Chinese Academy of International Trade and Economic Cooperation notes that from January to March, China saw 12,603 new foreign‑invested enterprises—up 4.3% year on year—highlighting the market’s continued appeal.
For digitally savvy global citizens, this deal signals deepening ties between multinationals and China’s green‑tech revolution. Entrepreneurs and thought leaders can watch as intelligent driving, hydrogen energy, battery recycling, and supply‑chain innovations take center stage. For travelers and nomads, Shanghai’s evolving EV ecosystem offers a glimpse into the future of urban mobility and sustainable development.
Reference(s):
cgtn.com
