The city of Shanghai has attracted a significant investment from Japanese automaker Toyota, with the company launching a wholly-owned electric vehicle plant in the Jinshan district. The project, which is the world’s first overseas new energy vehicle (NEV) production base established by Lexus, involves an investment of 14.6 billion yuan ($2 billion) and is slated for completion in August 2026. The plant will have an initial annual capacity of 100,000 units and will develop and produce Lexus-branded EVs and batteries.
According to officials and experts, the project demonstrates Shanghai’s attractiveness for international investment and its determination to develop a world-class NEV industrial ecosystem. Chen Jian, deputy director of Jinshan district’s investment promotion office, stated that the project recognizes China’s manufacturing capabilities in NEVs, including research and development, product reliability, stability, quality, and supply chain.
The investment is seen as a vote of confidence in China’s business environment, with Qi Xiaozhai, vice-chairman of the Commerce Economy Association of China, noting that China’s broad market, strong economic growth, robust industrial infrastructure, and highly abundant talent pool all contribute to international investors’ decision-making. Shanghai’s complete automotive industry chain, particularly in the Yangtze River Delta region, is also seen as a key factor in the investment.
Peng Xijun, general manager of Shanghai New Jinshan Industrial Investment & Development Co Ltd, highlighted the region’s mature automotive industrial chain, which provides price advantages for China’s NEVs. The region is home to over 3,000 parts and components companies, forming a new industrial chain development pattern. Sun Lijian, director of the Financial Research Center at Fudan University, noted that Shanghai and the Yangtze River Delta region have formed the world’s most complete NEV sector, attracting top enterprises and providing a competitive advantage in terms of cost.
The investment is also seen as a sign of China’s progressing opening-up, with innovative policies supporting foreign investment and development opportunities attracting foreign investment. The region’s strong consumption capability and localized innovation-driven ecology are also expected to provide an ideal market for future NEVs. Overall, the project demonstrates Shanghai’s position as a leading destination for international investment in the NEV sector, with its complete industrial chain, attractive business environment, and strong economic growth.