Lexus plans first China-built electric SUV for 2027 at new wholly owned Shanghai plant

What is reported, and who is reporting it

Lexus plans to launch its first China-made vehicle in 2027, an unnamed battery-electric SUV to be built at a new Toyota-owned plant in Shanghai's Jinshan District, ending nearly three decades of the brand relying exclusively on imports for its mainland Chinese lineup. That is according to CarNewsChina, which cites reporting from Chinese outlet Autohome, and the publication notes Lexus has not confirmed the reported production target or disclosed the model's name or specifications. ¹

The underlying thread traces to Nikkei Asia. CnEVPost, CarExpert, GoAuto and Top Gear Philippines all report, citing Nikkei, that Toyota will produce a next-generation Lexus electric SUV in Shanghai from autumn 2027 with initial output of about 1,000 units a month, scaling to tens of thousands annually from 2028. Because these outlets draw on the same Nikkei reporting, they should be read as shared source material rather than independent corroboration of each detail. Toyota itself has not publicly confirmed the specific model or production start. ²⁵⁶⁸

Toyota has, however, confirmed the broader programme. In February 2025 the company announced it would establish a wholly owned company in Shanghai to develop and produce Lexus battery-electric vehicles and batteries, making Lexus the second foreign auto brand after Tesla to hold a wholly owned vehicle plant in China, as CnEVPost reports. CarExpert likewise notes Toyota previously confirmed the Shanghai operation would develop and produce Lexus EVs and batteries, with production due to begin in 2027. ²⁵

The Jinshan plant and its investment

The plant is located in Shanghai's southwestern Jinshan district, and CarExpert and GoAuto report the investment at around 14.6 billion yuan, which CarExpert converts to roughly A$3 billion. Note that Autoblog's coverage states a different figure — it describes the project as a ¥14.6 billion ($91 million) factory — a currency-level conflict between outlets that remains unresolved in this corpus; the 14.6 billion yuan figure appears in two Australian publications. CarNewsChina says construction began in 2025, while CnEVPost dates the groundbreaking to June 2025 and EV Powered to July 2025; the year is consistent even though the exact month differs between outlets. ¹²³⁴⁵⁸

The facility operates as a wholly foreign-owned enterprise, allowing Toyota to build Lexus vehicles independently of its two existing Chinese joint ventures with GAC and FAW, which currently produce models such as the bZ3X, bZ3, bZ5 and bZ7, CarNewsChina reports. At ground-breaking, CnEVPost says the project was expected to be completed in August 2026 and begin production in 2027. ¹⁵⁷

Gigacasting and conveyor-free assembly

The SUV will reportedly use aluminium gigacasting — large structural castings for the front and rear that consolidate multiple components into single pieces, reducing parts count and assembly operations. Nikkei-sourced reporting carried by CarExpert, CnEVPost and GoAuto says the process can cut the weight of some body structures by up to 20 per cent, increase rigidity, speed production and yield a several-per-cent improvement in driving range. EV Powered adds that Toyota calls the method 'Lexus Speed', and that Volvo and Tesla already apply similar casting on their EX60 and Model Y respectively. ¹²³⁵⁸

Two further manufacturing details come from CarNewsChina: Toyota publicly demonstrated gigacasting work in 2023, including equipment able to cast a large body section in about three minutes, and vehicles at Jinshan will move autonomously between workstations rather than follow a conventional conveyor line. CarNewsChina cautions that the reported initial target of about 1,000 vehicles a month — roughly 12,000 annualised — is not confirmed as long-term capacity. CnEVPost, citing Nikkei, notes this initial rate equals only about 12 per cent of the plant's reported planned annual capacity of 100,000 units, suggesting a cautious ramp-up. ¹⁵

Market pressure behind the shift

The China-first production decision follows sustained sales pressure. CarNewsChina reports Lexus deliveries in China fell from a peak of approximately 227,000 vehicles in 2021 to 182,458 in 2025, with the ES sedan down roughly 26 per cent year on year from January to August 2026 at around 57,800 units, and some dealers offering discounts exceeding 50,000 yuan (approximately US$7,000). CarExpert and GoAuto both note Lexus sold 182,458 vehicles in China in 2025 against 370,260 in the United States. Toyota's total China sales also fell sharply: Electrek reports Toyota sold just over 1.05 million vehicles in China in the first nine months of 2026, down 18.9 per cent year on year. ¹²⁷⁸

Context for the market: CarNewsChina reports new energy vehicles accounted for approximately 54 per cent of China's passenger-car retail sales in 2025, citing China Passenger Car Association data, while CarExpert and GoAuto, citing GlobalData, put China at 8.57 million battery-electric sales in 2025, around 60 per cent of the global total. Local production would let Lexus avoid the 15 per cent customs duty on imported passenger cars, giving it more pricing flexibility against domestic premium EV brands such as Nio and Zeekr, CarNewsChina reports — its analysis, not a confirmed outcome. Nikkei-sourced reporting also records that Toyota halted a lower-slung next-generation EV coupe project in Japan in spring 2026 and shifted its next-generation EV focus toward SUVs better suited to Chinese demand, per CnEVPost. ¹²⁵⁸

What remains unknown, and the Australian picture

Lexus has not disclosed the SUV's name, price, battery chemistry, supplier, capacity, motor specifications or driving range, CarNewsChina reports. On batteries, CarNewsChina notes some reports point to prismatic ternary lithium or lithium iron phosphate cells for the initial model, but that Lexus has confirmed neither chemistry nor capacity. It also cautions that Toyota's sulfide-based solid-state battery development with Idemitsu Kosan, targeted for practical application in 2027–2028, does not confirm solid-state batteries for this SUV. Top Gear Philippines reports Lexus has specified no model name or powertrain details either. ¹⁶

Export plans are unconfirmed. CarExpert states there is no indication the Shanghai-built Lexus will come to Australia, with the model understood to be primarily aimed at Chinese buyers, and GoAuto reports there is likewise no indication the model is under consideration for Australia — noting Toyota has never previously sourced Australian-market vehicles from its Chinese plants, though Mazda and Nissan have begun or are expected to sell China-built models here. Separately, CarExpert notes Lexus Australia's current EV lineup comprises the RZ and the ES EV sedan, with the TZ electric SUV revealed this year yet to be confirmed locally. Whether the Shanghai plant's technology and platform eventually shape future Lexus models sold globally, as CarExpert suggests is possible, remains a projection rather than a confirmed plan. ¹²⁸