Toyota Motor (NYSE: TM), the world's largest automaker, is making a significant move in the electric vehicle (EV) market by establishing a wholly owned EV and battery production company in Shanghai, China. This strategic expansion is aimed at strengthening Toyota's Lexus brand in the world's largest EV market.

Key Highlights of Toyota's EV Expansion

🔹 New EV & Battery Production Unit - Toyota will develop and manufacture Lexus-branded electric vehicles (EVs) and batteries in Shanghai.
🔹 Production Timeline - Set to begin in 2027.
🔹 Annual Capacity - The plant will produce 100,000 EVs per year initially.
🔹 Job Creation - Toyota plans to hire 1,000 employees during the startup phase.
🔹 Carbon Neutrality Partnership - Toyota will collaborate with Shanghai's municipal government to support China's goal of carbon neutrality by 2060.

Toyota's Strategy: Strengthening Lexus' EV Market Share

Toyota has been lagging behind competitors like Tesla (NASDAQ: TSLA) and BYD (SHE: 002594) in the EV space, particularly in China. By localizing production, Toyota aims to:

✅ Cut costs by avoiding high import duties on EVs.
✅ Compete more effectively with domestic Chinese EV makers.
✅ Accelerate Lexus' shift to electric in response to China's EV dominance.

Track Toyota's Performance with Key Data

📊 Full Financial as Reported API - Analyze Toyota's balance sheet, revenue, and profitability.

📊 Sector Historical API - Compare Toyota's EV strategy with other automakers in the market.

With China leading global EV sales, Toyota's localized Lexus EV production could be a game-changer for the automaker's long-term growth.