Lexus to launch first-ever CKD China model in 2027 – built at new Shanghai plant; reports indicate EV SUV

According to a report by Autohome, Lexus’ first made-in-China model will be a battery-electric SUV that will be launched in 2027. This is significant because Lexus cars sold in China have been imported ever since parent Toyota set up dealerships there over two decades ago.

The upcoming model will be built at a new Toyota-owned plant in Shanghai’s Jinshan District, which uses aluminium gigacasting and a conveyor-free assembly layout. Set to be operate as wholly foreign-owned enterprise that is independent of Toyota’s two existing Chinese joint ventures, the facility is said to have an initial production capacity of around 1,000 vehicles monthly.

For now, there are no details about the SUV’s name, price, battery capacity, driving range or motor configuration. With local assembly, Lexus can avoid the 15% customs duty on imported passenger cars, enabling it to better face growing competition from domestic brands.

This development follows on from Toyota’s announcement made in February last year where it entered into a comprehensive partnership agreement with the Shanghai municipal government for carbon neutrality. The deal entails establishing a wholly-owned company in the Jinshan District for the development and production of battery-electric vehicles and batteries.