Toyota is in discussions with Shanghai authorities about building a wholly owned factory, aiming to produce electrified cars for its premium Lexus brand, according to insiders. The Japanese automaker is seeking benefits similar to those Tesla received, including tax breaks and policy support, to control the facility outright. This move, occurring amid Toyota’s struggles in China’s competitive market, aligns with CEO Koji Sato’s strategy to emphasize battery electric vehicles. Despite past sluggish sales in China, Sato sees battery electric vehicles as a key component of Toyota’s multi-pathway approach, which includes various power trains.