Lexus is taking a page from China for its next electric SUV launching in 2027

Toyota’s luxury brand Lexus is launching a new electric SUV in 2027, its first vehicle built in China in over two decades. Lexus leans on China for next-gen EV in 2027 It’s official. Toyota is breaking from tradition, planning to develop and produce the new vehicle in China rather than its home market of Japan. Lexus confirmed the new vehicle will be made at its new manufacturing plant in Jinshan, Shanghai, and will go on sale in 2027. As the first Lexus factory built from scratch overseas, the company said the new plant will bring together its global manufacturing capabilities. Toyota broke ground on the facility in June 2025, saying the new facility will unlock “Lexus speed” as it aims to keep pace with domestic brands like BYD. Construction was expected to be completed this past August, with the first vehicle scheduled to roll off the assembly line in the fall of 2027. The first Lexus model will be an electric SUV, produced using advanced manufacturing methods such as gigacasting to reduce costs and speed up output. The facility will be a cornerstone of Toyota’s comeback plans in China, where it’s struggled to compete with local brands. Production capacity will be around 1,000 units per month in 2027 as Toyota ramps up to “tens of thousands” in 2028. Toyota’s sales plunged nearly 20% in China last month, marking its eighth consecutive month with lower sales than the year prior. The market in China “remained weak due in part to rising gasoline prices, while the market for gasoline vehicles and hybrid vehicles was particularly affected,” Toyota said. Lexus TZ (left) and ES (right) Source: Lexus China In the first nine months of 2026, Toyota sold just over 1.05 million vehicles in China, 18.9% fewer than in the same period last year. Lexus’ new Shanghai facility is wholly owned by Toyota, enabling it to produce vehicles in China through its joint ventures. The new electric SUV will go on sale in China in 2027. Specific details, including battery, range, and prices, have yet to be announced. Lexus TZ (Source: Lexus China) As part of its “with China, for China, strategy, Lexus said it will “continue to use China as a source of innovation,” adding it will “deepen localization efforts” to bring classic models to the market that meet local needs. Toyota joins the growing list of major OEMs that are already tapping, or plan to tap, China for its next-generation electric vehicles. Electrek’s Take While in other global markets, Toyota is sticking to its “multi-pathway” strategy, which includes all powertrains from electric to ICE; in China, it’s being forced to adapt. China is Toyota’s third-largest market, following the US and Japan. To stay competitive and turn things around in China, Toyota will rely more on local partners and suppliers. Developing the new Lexus electric SUV in China first rather than Japan is significant given Toyota’s traditional ways. Typically, it takes Toyota about four to five years to fully develop a new vehicle. In China, automakers are now building them in as little as two years. Toyota, like many automakers at this point, is turning to China for new tech, batteries, production methods, and other EV components to keep pace. FTC: We use income earning auto affiliate links. More.