TOYKO/BANGKOK – Toyota Motor Corporation unveiled plans to establish a new EV facility in Shanghai by 2027 to compete in China’s premium electric vehicle segment, while investing 55 billion baht to transform its long-standing Thai operations from conventional engines to hybrid vehicle production.
According to Kyodo News, citing sources familiar with the matter, the facility will focus on producing electric vehicle models under the luxury Lexus brand, though plans may be adjusted based on EV market demand.
The Japanese automotive giant currently manufactures various models in China, including the RAV4 SUV and bZ4X electric car, through joint ventures with China FAW Group Co. and Guangzhou Automobile Group Co. Despite facing an 11 percent decline in sales during the first half of this year, with 785,000 units sold amid strong competition from local manufacturers like BYD Co., Toyota maintains its strategic view of China as a crucial market.
In a parallel development, Toyota’s Chairman Akio Toyoda met with Thai Prime Minister Srettha Thavisin at the Government House, where he confirmed Toyota’s commitment to maintaining its manufacturing presence in Thailand, where the company has operated for over 60 years.
The company announced a significant investment of 55 billion baht ($1.6 billion) to upgrade its production lines from internal combustion engines to hybrid vehicles. The Thai Prime Minister emphasized the government’s readiness to facilitate automotive manufacturers and parts suppliers to sustain the country’s automotive industry.
Industry Minister Ekanat Prompant revealed that Toyota plans to expand its electric component production in Thailand, including motors and transmissions. This expansion will create new employment opportunities and facilitate technology transfer.
The minister highlighted that Toyota has expressed confidence in Thailand’s automotive parts manufacturing capabilities, noting that the quality and production standards match those of Toyota’s operations in Japan.
This dual expansion strategy in China and Thailand underscores Toyota’s commitment to strengthening its presence in key Asian markets while transitioning toward electrified vehicle production.
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