<h2>Imitating Tesla to Build a Wholly-Owned Factory</h2>
&#34;Domestic&#34; Lexus may really be coming, but it's not a fuel vehicle.
According to a report by the Japanese media Nikkei, Toyota Motor Corporation has decided to build a new factory in China and has already confirmed the construction site, primarily producing electric vehicle models of its luxury brand &#34;Lexus.&#34;
Unlike previous joint ventures, Toyota is building a 100% wholly-owned foreign enterprise factory in China, similar to Tesla's Shanghai factory.
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So far, Toyota has not responded, while Lexus China stated, &#34;This is unofficial news, and we will not comment.&#34;
In fact, as early as June, there were reports that Toyota was in talks with relevant departments about the possibility of investing in Shanghai to build a 100% wholly-owned Lexus factory similar to Tesla's China factory.
Insiders revealed that Toyota hopes to secure similar treatment to Tesla China, from tax incentives to policy support, from land use rights to not needing a local joint venture partner, Toyota almost wants to replicate all the favorable conditions Tesla has for its wholly-owned factory in China. However, at that time, the negotiations were far from final confirmation and may have changes.
The latest news further confirms the possibility of building the factory. According to Nikkei, Toyota has confirmed the construction site within Shanghai and expects this factory to be operational around 2027, although the specific construction time and location have not been disclosed.
This factory will specifically produce electric vehicles for Lexus, and there will also be Chinese logos on the rear of the vehicles, with plans for the local parts usage rate to reach over 95%. The new cars produced will be sold in the Chinese market while also being exported to Japan and other overseas markets.
If successful, Toyota will become the first Japanese car company to build a factory independently in China, and it will also be the second foreign company to build a wholly-owned factory in Shanghai after Tesla.
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In Toyota's journey towards electrification, Lexus plays a leading role in the transformation.
According to the &#34;Electric Vehicle First&#34; strategy promoted by Toyota CEO Koji Sato since taking office, Toyota expects to invest in 10 pure electric vehicles by 2026, with annual sales reaching 1.5 million units, and pure electric vehicle sales reaching 3.5 million units by 2030, with Lexus defined as the &#34;pioneer of electrification.&#34;
In Toyota's plan, Lexus will ultimately transform into a pure electric brand. Starting in 2026, Toyota will develop new electric vehicles for Lexus using a dedicated electric vehicle manufacturing platform, which can be used to build various models
It is expected that by 2030, all models under its brand will offer pure electric versions, achieving 100% pure electric vehicle sales in China, North America, and Europe, with a global sales target of 1 million units. By 2035, it will completely transform into a pure electric brand.
Additionally, in terms of sales, Lexus is also a relatively &#34;strong&#34; brand within Toyota's system in China. Although overall performance in China has declined, Toyota's situation is much better compared to other Japanese car manufacturers. In 2023, Toyota's overall sales in China only decreased by 2%, while Lexus brand sales grew against the trend by 3%.
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From January to October this year, the total number of imported cars in China was only 580,000, a year-on-year decrease of 9%. However, amidst this bleak situation, Lexus's performance stands out—achieving sales of 149,000 units, representing a 7% year-on-year growth, firmly holding the top spot in imported car sales.
Koji Sato has also stated, &#34;In the process of Lexus's electrification transformation, the Chinese market will play a very important role.&#34;
In terms of models, Lexus is also well-prepared. At this year's Beijing Auto Show, Lexus showcased two new concept cars, namely the LF-ZC and LF-ZL, both of which serve as the basis for future electric models.
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Not long ago, Toyota applied to register a patent for a new SUV with the National Intellectual Property Administration. This model is the production version of the previously released Lexus LF-ZL pure electric concept car. The new vehicle is positioned as a flagship model, with dimensions comparable to Aito M9, reaching 5300×2020×1700 mm. Except for a slightly lower height, all other dimensions surpass those of Aito M9.
With a modular body structure and equipped with the latest prism battery, it claims a range of up to 965 kilometers, featuring a 12.8-inch central control screen and an AI system that can automatically learn driving habits. This production model will be released after 2026, aligning with Toyota's timeline for production after establishing a factory in China.
In fact, it is not surprising that Toyota wants to emulate the &#34;Tesla model&#34; to advance its electrification process. Since its production began in 2019, the results achieved by Tesla's Shanghai factory are evident. In the first three quarters of 2024, Tesla's Shanghai factory has delivered 676,000 vehicles, accounting for more than half of Tesla's global deliveries during the same period.
Tesla's current success is largely attributed to its Shanghai factory, and Toyota clearly aims to leverage China's supply chain advantages to rapidly advance its electric vehicle business. In other words, while establishing a wholly-owned electric vehicle factory in Shanghai may not have immediate economic significance, it is an important long-term strategy
Now, both Volkswagen and Audi have utilized China's R&amp;D capabilities to develop cooperative models, and if Toyota wants to catch up in electrification, the best teacher is, of course, the Chinese market.
Author: Wang Lei, Source: Super Electric Laboratory, Original Title: &#34;Toyota is going to make Lexus in China&#34;
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Toyota Motor plans to build a wholly-owned Lexus electric vehicle factory in China, mimicking Tesla's model. The site for the factory has been determined, and it is expected to be operational by 2027, aiming for a 95% local parts usage rate. Toyota hopes to obtain policy support and tax incentives similar to those of Tesla, with Lexus becoming the pioneer of Toyota's electrification transformation

- Toyota plans to build a wholly-owned factory in China to produce electric Lexus vehicles, similar to Tesla's Shanghai factory.  
- The factory is expected to begin operations around 2027, with a goal of achieving over 95% local parts usage and selling vehicles in China, Japan, and other markets.  
- This move aligns with Toyota's strategy to transition Lexus into a fully electric brand by 2035, capitalizing on China's supply chain advantages to enhance its electric vehicle offerings.

Toyota is going to produce Lexus in China