Lexus to launch first China-made electric SUV in 2027 at Shanghai plant

Lexus will launch its first China-made vehicle in 2027, ending nearly three decades of relying exclusively on imports for its mainland Chinese lineup, Autohome reports. The model will be a battery-electric SUV built at a new Toyota-owned plant in Shanghai’s Jinshan District, as the luxury brand faces growing competition from domestic EV manufacturers.

The factory will use aluminium gigacasting and a conveyor-free assembly layout. Initial production is reportedly planned at around 1,000 vehicles per month. Lexus has yet to disclose the SUV’s name, price, battery capacity, motor specifications or driving range.

Shanghai plant adopts gigacasting

Construction of the Jinshan facility began in 2025. Operating as a wholly foreign-owned enterprise, it will allow Toyota to manufacture Lexus vehicles independently of its two existing Chinese joint ventures.

The plant will use front and rear aluminium structural castings, consolidating multiple components into larger pieces to reduce parts and assembly operations. Vehicles will also move autonomously between workstations rather than follow a conventional conveyor line.

The reported initial target of 1,000 vehicles per month equates to about 12,000 annually, but it is not confirmed as long-term plant capacity. Toyota has not disclosed its eventual production target or ramp-up schedule.

The separate Lexus operation comes as Toyota reorganises coordination across its two Chinese joint ventures. On September 28, 2026, GAC proposed acquiring the stake in FAW Toyota held by FAW Co., Ltd., a China FAW subsidiary. On October 8, FAW, GAC and Toyota signed a strategic alliance framework agreement covering closer cooperation in research and development, procurement and production.

The proposed transaction remains subject to regulatory and other procedures. FAW Toyota is expected to continue as an independent entity, with FAW becoming a strategic shareholder in GAC.

Battery chemistry remains unconfirmed

Toyota and Idemitsu Kosan are developing sulfide-based solid-state batteries, with Toyota targeting practical application in EVs in 2027–2028 and full-scale production later. This timeline does not confirm solid-state batteries for the Lexus SUV.

Some reports point to prismatic ternary lithium or lithium iron phosphate (LFP) cells for the initial model. Lexus has not confirmed the chemistry, supplier or battery capacity.

Lexus faces pressure in China

Lexus deliveries in China fell from a peak of approximately 227,000 vehicles in 2021 to 182,458 in 2025. The ES sedan reportedly recorded around 57,800 deliveries from January to August 2026, down approximately 26% year on year. Some dealerships also offered cash discounts exceeding 50,000 yuan (approximately 7,000 USD).

Local production would let Lexus avoid the 15% customs duty on imported passenger cars, giving it more pricing flexibility against domestic premium EV brands such as Nio and Zeekr. Actual pricing for the SUV remains undisclosed.

China strategy differs from Australia

Lexus has taken a different approach in Australia, where its sales mix remains heavily weighted toward hybrids and plug-in hybrids. Lexus has discontinued the UX 300e, while the RZ has faced substantial dealer discounting. More than 90% of Lexus deliveries in Australia reportedly come from hybrid and plug-in hybrid models.

By contrast, new energy vehicles accounted for approximately 54% of China’s passenger-car retail sales in 2025, according to China Passenger Car Association data. Toyota’s existing local partnerships also show its use of Chinese technology and suppliers: the FAW Toyota bZ3 uses BYD battery technology, while the GAC Toyota bZ3X features an intelligent driving assistance system developed with Momenta.

The Jinshan plant will establish a separate manufacturing base for Lexus in China. Its first SUV is scheduled for 2027, although its specifications, pricing and market positioning remain undisclosed.