TOKYO, Sept. 1 (Xinhua Silk Road) -- Toyota Motor plans to produce next-generation electric vehicles (EVs) in China from the autumn of next year, local media reported recently.
The new model will be introduced as a sport utility vehicle (SUV) under the company's luxury brand Lexus. It will be produced at Toyota's Shanghai factory, with production of about 1,000 vehicles per month in the first year, and expected to rise to tens of thousands annually by 2028.
The move marks a shift in Toyota's traditional business model. Toyota has traditionally conducted much of its research and development (R&D) and vehicle production in Japan, taking its home market and the United States as key markets before expanding elsewhere. It is rare for the automaker to start production of a new model outside Japan.
Industry analysts said the decision was driven not only by the importance of the Chinese market, but also by the need to tap China's technological and manufacturing strengths to bolster Toyota's global competitiveness. As China's new energy vehicle market has grown rapidly, Toyota has stepped up R&D investment in the country and moved some EV development there to speed up the development of new models.
Takaki Nakanishi, senior analyst and partner at Nakanishi Research Institute, said China is at the forefront of vehicle intelligence and artificial intelligence (AI), a trend Toyota cannot afford to ignore.
"Toyota needs to learn from China's technological advances and apply what it learns to its global operations," Nakanishi said.
(Contributed by Li Shimeng)
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