On April 22, the Shanghai Municipal Government signed a strategic cooperation agreement with Toyota Motor Corporation, while the Jinshan District Government entered into a cooperation memorandum with Toyota China. Concurrently, Xinjinshan Development Company of Jinshan District signed an investment service agreement with Lexus (Shanghai) New Energy Co., Ltd. These agreements mark the official establishment of Lexus —a wholly-owned Toyota subsidiary focused on R&D and production of pure electric vehicles and batteries in Jinshan.

According to Toyota China, the new facility is slated to commence production in 2027, with an initial annual capacity of 100,000 vehicles and expected creation of 1,000 jobs.

Despite not being a traditional automotive hub, Jinshan’s strategic location at the Yangtze River Delta’s geometric center links it to auto parts clusters in Ningbo, Toyota’s R&D center in Changshu, and local smart-driving enterprises in Shanghai. This "one-hour supply chain radius" (encompassing key suppliers within a 60-minute commute) will allow Toyota to achieve over 95% localization, reducing logistics costs by an estimated 30%.

Moreover, Jinshan’s transformation epitomizes Shanghai’s "North-South Transformation" strategy (rebalancing development between its northern industrial zones and southern districts). As central urban areas reach saturation, this southern region has long been positioned as a key driver of advanced manufacturing growth in the megacity. Its Shanghai Bay High-Tech Zone—where the Lexus project is based—serves not only as Toyota’s proving ground but also demonstrates Shanghai’s pioneering approach to converging industrial, innovation, and talent ecosystems.

The Lexus plant’s arrival positions Jinshan as a flagship industrial base in Shanghai, propelling China’s NEV sector toward global competitiveness. By 2027, every Lexus produced in Jinshan will stand as a testament to this transformation.

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