Toyota News China

It's not just electric vehicles. Toyota is warning, "We don't have much time left," with China poised to take the lead in another emerging technology following EVs. Toyota is warning that.

Toyota is developing and making electric vehicles and EV batteries in China under a new partnership with the Shanghai government. Toyota launches bZ5 electric coupe SUV with BYD blade battery, starting at 18,000 USD in China EV Jun 10, 2025 Adrian Leung. TOKYO, Nov 9 (Reuters) - Toyota aims to make at least 2.5 million vehicles a year in China by 2030, three people said, an overhaul that will see it bring its Chinese sales and production.

Toyota's sales in China are slumping as it faces brutal competition from local EV giants like BYD. The Japanese automaker plans to fight back by taking a page from Elon Musk's playbook. It said.

The Shanghai factory is expected to start production in 2027 and will develop a new BEV under Toyota's premium Lexus brand. It features the new Toyota Pilot intelligent driving assistance system, which supports more than 30 functions, including navigation assistance for urban and highway driving, as well as automated parking. China holds a leading position in the fields of smart and electric vehicles.

Toyota will invest CNY14.2 billion (USD1.94 billion) in the new plant, which will produce vehicles for its premium Lexus brand, and will cover research and development, manufacturing, and sales. The factory will be the second wholly owned auto plant to be opened by a foreign manufacturer in China, after Tesla's Shanghai Gigafactory. Toyota, aiming to compete better with Chinese EV makers, wants to produce at least 2.5 million vehicles annually in China by 2030, Reuters reported, in contrast to some other automakers' retreat.

These developments form the core of Toyota's "China R&D 2.0" strategy, which has seen local teams take the lead on seven new models. Chinese engineers are reimagining the next Camry with extended-range electric capability, while the 2026 Highlander will debut Toyota's performance PHEV system delivering 0-100km/h in 5.8 seconds.