Toyota to produce Lexus electric SUV in China using local supply chains

Toyota Motor is shifting its production strategy for a new Lexus electric SUV in China, aiming for a launch in the autumn of 2027. This move marks a significant departure from the traditional Japanese 'keiretsu' model, which relies on a tightly linked network of domestic suppliers that typically follow the parent automaker abroad.

To optimize costs, Toyota is increasingly localizing its supply chain within China. This trend was previously observed with the bZ3X electric model released in March 2025. For the upcoming Lexus electric SUV, which utilizes gigacasting technology, many Chinese suppliers have reportedly secured contracts, while Japanese partners have noted a lack of involvement in the project's equipment or technology.

This strategic pivot follows the cancellation of the Lexus LF-ZC electric sedan project in May, which has left some Japanese suppliers unable to secure new opportunities in the region.