Toyota to Build Next-Gen Lexus EV in China First, Using Die-Casting Tech

Toyota Motor is preparing to produce its next-generation electric vehicle in China before anywhere else, slapping the Lexus badge on the car and building it at the company's Shanghai factory starting in autumn 2027.

Initial output is expected to reach about 1,000 units per month, with production gradually scaling up to tens of thousands of vehicles annually by 2028, according to reports.

Integrated Die-Casting Cuts Weight, Boosts Range

The new model will employ integrated die-casting technology — a process that fuses multiple aluminum body panels into single large components in one casting. Toyota says the approach can reduce the weight of relevant parts by as much as 20 percent.

For a conventional electric vehicle, that weight reduction is estimated to extend driving range by roughly 4 to 5 percent while also stiffening the body shell and simplifying the assembly line.

From Failed Sedan to China-Favored SUV

Earlier this year, Toyota abandoned plans for an all-electric sports sedan being developed in Japan and pivoted instead to an SUV — a body style that has proven far more popular with Chinese buyers. The shift reflects Toyota's growing recognition that China's EV market cannot be ignored.

According to GlobalData, China sold 8.57 million electric vehicles last year, accounting for 60 percent of global sales — roughly three times Europe's total and more than a hundred times Japan's.

Why Lexus First?

Starting with the Lexus brand rather than the main Toyota badge appears deliberate. Lexus operates at lower volume with higher profit margins, making it a suitable testbed for a new manufacturing approach before a broader rollout. The phased production plan — from 1,000 monthly units to tens of thousands annually — aligns with that logic.

Local Supply Chain Cuts Costs

Local battery procurement in China should meaningfully reduce costs compared with importing cells or packs. Combined with the weight savings and manufacturing efficiencies from die-casting, Toyota expects the strategy to improve the vehicle's cost competitiveness in an increasingly price-sensitive market.

Toyota has long promoted a