Toyota is making significant strides in its electric vehicle push by partnering with the Shanghai government to develop and produce electric cars and EV batteries in China. The automaker is establishing a new company in the Jinshan district of southwest Shanghai, which will focus on producing Lexus EVs starting in 2027, with an initial capacity of 100,000 vehicles per year and the creation of approximately 1,000 jobs.
In addition to its Chinese venture, Toyota has announced plans to build a $14 billion EV battery facility in North Carolina. This plant is set to manufacture batteries for electric vehicles, hybrid models, and plug-in hybrids, with production geared to supply North American models beginning in April, and is expected to generate around 5,000 jobs.
These steps reflect Toyota's renewed commitment to expand its electric vehicle offerings at a time when critics have argued the company had lagged behind competitors like Tesla and BYD. The developments are particularly timely given the booming Chinese EV market and increasing global emphasis on sustainable practices.
Amid these strategic moves, Toyota also reported a substantial increase in fiscal third quarter profits, which rose by 61% year-over-year to 2.19 trillion yen, as sales reached 12.4 trillion yen. This financial uptick follows a period of recovery from production suspensions linked to a certification scandal in Japan, where issues such as the use of outdated testing data were acknowledged, though these problems did not compromise vehicle safety.
Furthermore, Toyota has revised its full fiscal year profit forecast through March 2025, projecting an increase to 4.5 trillion yen—a revision influenced by favorable exchange rates and effective cost reduction measures, although this figure remains lower than the previous fiscal year’s profit. Through these initiatives and financial efforts, Toyota aims not only to meet the surging demand for EVs but also to support the Chinese government’s carbon neutrality targets by 2060, while strengthening its ties with local partners and consumers in China.