Lexus is set to begin manufacturing its first China-made vehicle in 2027. The brand will produce an all-electric SUV at a new, wholly-owned plant located in Shanghai’s Jinshan District.
Construction of the facility began in 2025. The site is designed to use aluminium gigacasting technology to integrate structural components and will feature a conveyor-free assembly system where vehicles move autonomously between stations. Initial production is planned at approximately 1,000 vehicles per month.
Lexus has not yet released the name, price, or technical details for this upcoming SUV. Information regarding battery capacity, motor power, and driving range remains unconfirmed.
This move follows a decline in Lexus deliveries in China, which dropped from about 227,000 units in 2021 to 182,458 units in 2025. Local production will allow the brand to avoid the 15% import duty on passenger cars, potentially improving its pricing competitiveness against domestic premium electric vehicle manufacturers.
There is currently no information regarding the availability of this China-made model in Nepal.
Writes on vehicle pricing, taxation and the Nepali auto market from ongoing tracking of distributor price lists. Editorial policy.
