Toyota plans to establish a wholly owned electric vehicle plant in Shanghai for its Lexus brand, aiming to begin operations around 2027, sources revealed. This move follows China’s deregulation of foreign investment, which previously allowed Tesla to build a wholly owned plant in the city. Currently exporting Lexus models from Japan to China, Toyota seeks to cater to the world’s largest auto market, where EVs are rapidly replacing gasoline vehicles. However, further negotiations with Chinese authorities are still required.