Japanese auto giant Toyota has commenced construction of a wholly owned electric vehicle plant in the city’s Jinshan district. This marks the first overseas NEV production base of Lexus, Toyota’s luxury arm, underscoring Shanghai’s rising prominence in the global new energy vehicle (NEV) sector.
The groundbreaking ceremony took place on June 27, just five months after the initial cooperation framework was established, highlighting both Shanghai’s efficient business environment and its appeal to foreign investors. The Lexus NEV project involves a total investment of 14.6 billion yuan (approximately $2 billion) and aims for completion by August 2026, with mass production expected to begin a year later. The plant will initially have an annual production capacity of 100,000 units.
According to Chen Jian, deputy director of the Jinshan district investment promotion office, the project affirms the international confidence in China’s comprehensive NEV capabilities, from research and development to reliability, product quality, and supply chain efficiency. The registered capital of 107.1 billion yen ($732 million) was fully funded by March 17.
The factory will manufacture Lexus-branded electric vehicles and batteries, integrating into Shanghai’s expansive NEV ecosystem. Qi Xiaozhai, vice-chairman of the Commerce Economy Association of China, remarked that the investment reflects growing global recognition of China’s robust business climate, dynamic industrial infrastructure, and skilled talent pool.
Peng Xijun, general manager of Shanghai New Jinshan Industrial Investment & Development, noted that the Yangtze River Delta’s mature automotive ecosystem effectively reduces NEV production costs. Jinshan district alone hosts 159 automotive support enterprises, including suppliers of key components like mirrors, interiors, and chips.
Fudan University’s Sun Lijian emphasized that China’s open market, complete supply chains, and innovation policies continue to attract high-level foreign investment. He pointed out that within a 200-kilometer radius of the Jinshan plant, over 3,000 parts and component firms have shaped a dense industrial network, making the region unrivaled in NEV cost competitiveness.
As NEV demand grows, Sun added, the area’s strong consumption capacity and innovation-driven environment are encouraging global firms to transition from ‘made in China’ to ‘made for China.’
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