To promote carbon neutrality initiatives in China, Toyota Motor Corporation (Toyota) and the Shanghai municipal administration have established a comprehensive partnership agreement. In order to develop and produce batteries and battery electric vehicles (BEVs), Toyota will create a new wholly owned company in Jinshan District, southwest Shanghai, as part of this plan.
Toyota’s concentration in important sectors like hydrogen energy, automated driving technologies, and battery recycling and reuse is in line with the Chinese government’s objective of becoming carbon neutral by 2060. Toyota wants to increase the supply of cutting-edge products that are suited to the demands of the local market in China, where there is a growing demand for new energy cars.
With manufacturing scheduled to start in 2027, the recently founded firm will lead the development of a new BEV under the Lexus brand. It is anticipated that the initial manufacturing capacity will be roughly 100,000 units annually, generating about 1,000 new jobs during the startup period.
To improve customer experiences in China, Toyota has long worked with Chinese car titans like Guangzhou Automobile Group Co., Ltd. and China FAW Group Co., Ltd. Going forward, the business is still dedicated to fortifying alliances and realising its goal of becoming a “best-in-town” business that fosters innovation and sustainability in the global automotive sector.