Lexus Begins Construction on EV plant in Shanghai; 2026 Lexus ES EV Announced

Lexus has officially kicked off construction of its first electric vehicle plant in Shanghai’s Jinshan district, marking a significant milestone in the brand’s electrification strategy and commitment to the Chinese market. The news was confirmed by the local government on July 1, 2025.

The new facility represents a massive investment of 14.6 billion yuan (about $2 billion) and will cover 1.12 million square meters. At full capacity, the plant is expected to produce up to 500,000 vehicles annually, though initial production will start at 100,000 EVs per year when output begins in 2027, according to a January 5 statement from Toyota Motor Co.

Operating as a subsidiary, the new Lexus factory aims to leverage China’s advanced supply chain, robust logistics infrastructure, and deep talent pool to achieve what Toyota describes as “China speed” in EV production. This localized approach is designed to make Lexus more competitive in the world’s largest EV market while allowing the brand to respond quickly to local consumer demands.

Lexus has had a strong presence in China since it began selling imported vehicles there in 2005. Despite a challenging market environment in 2024, Lexus maintained steady performance with local deliveries totaling 181,906 vehicles, holding its position as the fourth-largest luxury brand behind Mercedes-Benz, BMW, and Audi. Notably, while these German brands saw sales decline last year, Lexus’ figures remained flat, signaling resilience and potential for growth.

Toyota, which currently manufactures gasoline, hybrid, and battery-electric vehicles in China through joint ventures with FAW Group and GAC Motor, reported combined sales of 680,040 vehicles under the Toyota and Lexus brands in the first five months of 2025 — a 7.5 percent increase year-over-year.

The new Shanghai plant is not only a strategic investment in Lexus’ future but also a statement of intent to compete head-on in the fast-growing Chinese EV luxury segment. With local production, Lexus is better positioned to offer competitive pricing, faster delivery times, and models tailored to Chinese consumers’ evolving preferences.

This ambitious move underscores Toyota and Lexus’ determination to electrify their lineup and strengthen their foothold in a highly competitive and rapidly evolving market.

Lexus Unveils All-New 2026 ES in Shanghai, Debuts First-Ever ES EV Models

At the Shanghai International Automobile Industry Exhibition in April 2025, Lexus revealed the fully redesigned, eighth-generation 2026 ES — introducing both hybrid and all-new battery electric vehicle (BEV) variants for the first time. Available in front- and all-wheel drive, the new ES lineup embodies Lexus’ commitment to elegant, electrified mobility.

The ES has been a cornerstone of Lexus since debuting alongside the LS flagship in 1989. Redesigned under the concept “Experience Elegance and Electrified Sedan,” the 2026 ES focuses on a refined, quiet ride while staying tuned to evolving customer needs. Its flowing silhouette, inspired by the next-gen BEV concept LF-ZC, marks a bold evolution in Lexus design, blending minimalist elegance with dynamic presence.

Inside, the cabin is more spacious thanks to an extended length and wheelbase, offering improved visibility and comfort. Lexus introduces new design elements like Bamboo Layering and Synthetic Leather Embossing, paired with ambient lighting to create a serene, premium environment. The Executive Package, a first for North America, offers reclining rear seats, a passenger-side ottoman, and massaging rear seats on select models.

Built on an updated GA-K platform, the ES offers a diverse powertrain lineup. The ES 350h hybrid boasts a refined, quieter cabin and now offers AWD. The all-new ES 350e and ES 500e BEV models introduce a large underfloor battery for lower center of gravity and enhanced handling. The ES 500e features Lexus’ DIRECT4 AWD system for improved acceleration and stability, with an estimated range of 250 miles. The ES 350e offers up to 300 miles of range. Both support DC fast charging, achieving 10% to 80% charge in about 30 minutes under ideal conditions.

The 2026 ES also debuts Lexus Safety System+ 4.0, offering upgraded detection capabilities and advanced driver assistance features.

Guided by the “Lexus Electrified” vision, the new ES models push the brand closer to a fully electrified future, blending signature luxury with advanced technology. The 2026 ES will arrive in showrooms next year, with more details and pricing to be announced closer to launch.

*1: Target value in EPA when fitted with 19-inch wheels
*15: Toyota in-house measured figures