Toyota Motor Corp. has announced a significant expansion into EV manufacturing and battery production in both China and the United States.
Toyota’s latest venture in China comes through a new partnership with the Shanghai government, where the company is establishing a production facility in Jinshan district, southwest of Shanghai.
This new plant, slated to begin producing electric Lexus vehicles in 2027, will have an initial capacity of 100,000 units per year and create approximately 1,000 jobs.
Why is this important? China is the world’s largest EV market, with over 8 million electric cars sold in 2023 alone, accounting for nearly 60% of global EV sales, according to the China Passenger Car Association.
The demand is driven by robust government policies, incentives for EV adoption, and an extensive charging infrastructure. Toyota’s move into the region is not just strategic—it’s necessary for the company to remain competitive in an arena where local manufacturers like BYD are dominating.
Simultaneously, Toyota is making a massive $14 billion investment in battery production in North Carolina, where a new facility will begin shipping batteries for EVs, hybrids, and plug-in hybrids as early as April. This facility is expected to generate around 5,000 jobs, strengthening Toyota’s manufacturing footprint in the United States.
This development aligns with broader trends in the U.S. automotive industry, where federal incentives such as tax credits under the Inflation Reduction Act are encouraging domestic EV production.
Toyota’s North Carolina facility will help it qualify for these incentives, making its EVs more competitively priced in the North American market.
Addressing criticism: Toyota’s EV push
Toyota has faced scrutiny for being slow to embrace fully electric vehicles, choosing instead to focus on hybrid and hydrogen-powered cars. While the company revolutionized the industry with the Prius, it has been reluctant to commit to a fully electric lineup, unlike Tesla, which has been at the forefront of EV technology.
However, these latest moves suggest a shift in Toyota’s approach. By investing heavily in battery technology and entering China’s booming EV market, Toyota is signaling that it is ready to take a more aggressive stance in the electric revolution.
Industry analysts view Toyota’s expansion as a necessary adaptation to market demands. “Toyota has long been a leader in hybrid technology, but the EV market is evolving rapidly. This move helps them stay relevant and compete with pure-play EV manufacturers,” said an automotive industry analyst at EV Insights.
Data from BloombergNEF predicts that by 2030, EVs will account for more than 40% of new car sales globally. With Toyota now making decisive moves in this direction, it’s clear that the company is positioning itself to remain a dominant player in the automotive landscape.
The investments in Shanghai and North Carolina represent a balancing act between responding to regional demands, meeting sustainability goals, and catching up with competitors.
While Toyota’s EV journey may have been slower than some expected, these latest developments prove that the world’s top automaker is now charging full speed ahead into the future of electric mobility.
