Lexus' localization process is progressing steadily.
Transaction information from the Shanghai land market shows that in April this year, Lexus (Shanghai) New Energy Co., Ltd. won the right to use a state-owned construction land in Jinshan District, Shanghai, at a transaction price of 1.3534 billion yuan. The name of this land parcel is JSS3-405 Unit 24-5 in Jinshan District, covering an area of about 1.1278 million square meters (about 1,690 acres). The transfer period is 50 years for industrial land use, and the types of industries allowed are new energy vehicle manufacturing, lithium-ion battery manufacturing, and other battery manufacturing.
On February 5 this year, Toyota China announced that Lexus was preparing to build a wholly-owned factory in Shanghai. Toyota China said that Toyota Motor and the Shanghai Municipal Government have reached a cooperation intention to jointly promote relevant measures for the green and low-carbon development of Chinese society. Toyota has decided to establish a research and development and production company for Lexus pure electric vehicles and batteries in Jinshan District, Shanghai. The new company will rely on the advanced and mature industrial chain foundation, logistics network, talent system and market scale of Shanghai and the Yangtze River Delta region to develop Lexus brand pure electric models and plans to start production in 2027.
After the news was announced, Lexus (Shanghai) New Energy Co., Ltd. was officially established on February 18. The company is wholly owned by Lexus, with KATO TAKERO as the legal representative, the registered address in Jinshan District, Shanghai, and the registered capital of 107.1 billion yen (about 5.2 billion yuan).
Lexus first entered the Chinese market in 1995 and has been sold in China as an import since then, reaching a peak annual sales volume of 227,000 units in China in 2021. In the past 2024, its sales volume was 181,900 units, making it one of the few luxury car companies to maintain growth.
