Toyota will launch in China a plant for the production of Lexus electric vehicles and batteries for them by 2027

Until 2018, foreign manufacturers of electric transport could localize the assembly in China only on the conditions of creating a joint venture with a Chinese partner. In the segment of cars, this restriction lasted until 2022, but now it is eliminated. This will allow Toyota, following the example of Tesla, to build in China a completely owned by the Japanese corporation, the assembly of Lexus electric vehicles and batteries for them.

Image source: Toyota Motor

Such a bizarre combination of conditions, apparently, is caused by the desire of Toyota to localize the assembly of Lexus models in China, because she has long collected other cars with the participation of Chinese partners. This gives rise to some duality of the assortment, since the same model is always proposed in two versions, depending on the “co -authorship” of a particular Chinese manufacturer. Lexus brand machines are still imported to China, and therefore remained quite expensive.

At the same time, the release of “purebred” Lexus electric vehicles in China also makes sense, since this type of vehicle is rapidly gaining popularity from local buyers. The company in Shanghai, at which Toyota will establish electric vehicles for the Chinese market since 2027, will be able to issue 100,000 cars annually. The premium segment, which traditionally marks Lexus, has a higher rate of profit, which allows you to justify this project with relatively modest issues of release.

It is reported that the Lexus Shanghai enterprise will provide work of about 1000 people, and Chinese specialists will take part in the development of models adapted to the needs of local customers. Toyota will become the second foreign car manufacturer after Tesla, to whom the Chinese authorities allowed to build a local enterprise without the participation of a local partner.

According to the results of last year, Toyota has remained the largest car manufacturer in the world, but volumes of sales in natural terms are reduced in many regions, including China, and its quarterly profit is already reduced by the second quarter in a row. The company completed the last reporting period with a decrease in operating profit by 28% to $ 8 billion. At the same time, net profit increased by 61% to $ 14.3 billion. The number of machines sold per quarter decreased in an annual comparison by 4.3% to 2.44 million. The company improved its annual net profit to $ 30 billion.

By the way, if the volumes of sales of hybrids and Toyota electric vehicles between April to December last year even grew, then sales of all cars of this concern in China were reduced from 1.5 to 1.4 million pieces. The reduction of the market here affects the weakness of the economy expressed in the absence of Chinese consumers of the desire to spend money on large purchases.

It is noteworthy that Toyota simultaneously announced the completion of the construction of an enterprise for the production of traction batteries in North Carolina. From April, it will begin to issue batteries for hybrids and electric vehicles of the brand sold in the United States. The Japanese manufacturer spent almost $ 14 billion on the construction of this plant.