Toyota plans to produce and launch its latest electric vehicle equipped with advanced technology in China rather than in Japan for the first time, Japan's Nikkei reported on the 28th.
Toyota will begin production of a next-generation Lexus electric sport utility vehicle at a new plant in Shanghai in the fall of next year, according to the report. The model applies advanced technologies including giga casting, which consolidates multiple aluminum body parts into a single large component. Giga casting cuts body weight by up to 20%, extending driving range.
It is unusual for Toyota to launch a new model with advanced technology in China first, let alone produce it there. Toyota has until now developed and produced advanced vehicles in Japan before expanding to global markets, Nikkei said.
Overwhelming EV demand in the Chinese market appears to have shifted Toyota's new-vehicle sales strategy. EV sales in China reached 8.57 million units last year, accounting for 60% of global sales, according to British market research firm GlobalData. That is three times the volume sold across all of Europe and 100 times that of Japan. China's EV sales are projected to rise to 11.41 million units by 2030.
