KATHMANDU: Lexus is set to launch its first China-made vehicle in 2027. The upcoming all-electric SUV will be manufactured at Toyota’s new plant in Shanghai’s Jinshan District.
The facility will become Lexus’ first wholly owned manufacturing plant outside Japan. Construction began in 2025, with initial production reportedly planned at around 1,000 vehicles per month.
The new factory will use aluminium gigacasting technology to reduce the number of structural components. It will also adopt a conveyor-free assembly system, allowing vehicles to move autonomously between production stations.
Lexus has not disclosed the SUV’s name, price or technical specifications. Details about its battery capacity, motor power and driving range also remain unknown. The battery chemistry has not been confirmed, according to media reports.
The move comes as Lexus faces growing competition from Chinese electric vehicle manufacturers. Its deliveries in China declined from approximately 227,000 units in 2021 to 182,458 units in 2025.
Local production will allow Lexus to avoid the 15% import duty on imported passenger cars. This could give the brand greater pricing flexibility against domestic premium EV manufacturers.
