Toyota's New Lexus Factory Set to Outsize Tesla's Giga Shanghai
Toyota's upcoming electric Lexus plant in China is poised to surpass the size of Tesla's renowned Shanghai Gigafactory. Recent reports, based on publicly available documents shared by a Chinese blogger, shed light on Toyota's ambitious investment plans in the world's largest auto market.
According to the documents disclosed by Chinese blogger "This is Jinshan," the Shanghai government is allocating a substantial 113 hectares for a cutting-edge battery manufacturing project in the High-tech Industrial Development Zone. This move is believed to be in preparation for Toyota's new facility in Shanghai.
If these reports hold true, Toyota's new venture could potentially overshadow Tesla's Shanghai Gigafactory, which initially secured an 86-hectare plot for its overseas factory back in late 2018. The US automaker's facility boasted an initial capacity of 250,000 cars per year.
Situated just minutes away from a railway station in Jinshan, the district is positioning itself as "Shanghai's Bay Area," further enhancing the appeal of Toyota's strategic location for its new factory.
The recent announcement comes on the heels of Toyota appointing Li Hui as its first Chinese general manager of Toyota China. This move underscores Toyota's commitment to the Chinese market and its efforts to compete effectively in the region. The company has been in talks with Shanghai authorities to secure tax incentives and land grants, mirroring benefits received by Tesla in the past.
Toyota has officially revealed plans to establish a wholly owned entity in Shanghai, enabling local production of electric vehicles for its luxury Lexus brand. With an initial production capacity of around 100,000 units per year expected to commence by 2027, Toyota aims to set a new standard for carbon neutrality in collaboration with the Shanghai municipal government.
In a bid to bolster its presence in China, Toyota is set to create 1,000 new jobs in the initial phase of its operations, signalling a significant investment in the local workforce and economy.
While Tesla made headlines in 2019 with the launch of China's first foreign-owned car factory in Shanghai, Toyota's move marks a significant shift in the competitive landscape of the Chinese auto market. With Beijing easing restrictions on foreign ownership in the auto sector, Toyota is poised to leverage its extensive experience in the region, having operated joint ventures with state-owned carmakers and collaborated on EV projects with leading Chinese companies.
As Shanghai aims to enhance its business environment and attract foreign investment, Toyota's bold expansion plans signal a new chapter in the company's growth strategy in China.
Toyota's new electric Lexus plant in China could surpass Tesla's Shanghai Gigafactory in size.
Recent reports reveal significant details about Toyota's investment in China.
Toyota aims to establish a wholly owned entity in Shanghai for local production of electric vehicles.
Source: TECHNODE