Key Points:
- Toyota Motor will launch commercial production of its next-generation electric vehicles in China starting in fall 2027 under the Lexus luxury brand.
- The next-gen model will feature gigacasting manufacturing technology, molding complex vehicle body sections into single aluminum castings.
- Production will begin at roughly 1,000 units per month in the initial year before expanding to tens of thousands of vehicles annually from 2028.
- China accounted for roughly 60% of global electric vehicle sales, prompting Toyota to localize production to tap advanced battery and smart cockpit supply chains.
Global automotive giant Toyota Motor Corporation is fundamentally reorganizing its electric vehicle roadmap. The Japanese automaker plans to start commercial production of its next-generation electric vehicles in China in fall 2027, marking the first time the company will debut its advanced manufacturing platform outside Japan. The new model will debut as a luxury sport utility vehicle under the Lexus brand, incorporating cutting-edge gigacasting manufacturing techniques to challenge agile local competitors in the world’s largest automotive market.
The production rollout follows a measured scaling strategy. Initial manufacturing lines will assemble approximately 1,000 vehicles per month during the first operational year, translating to roughly 12,000 units annually. The automaker plans to ramp up output to tens of thousands of units per year starting in 2028 as local supply chains mature and factory automation reaches peak efficiency.
At the core of the vehicle’s manufacturing process is gigacasting, a revolutionary production method pioneered in modern electric vehicle assembly. The technique uses massive high-pressure die-casting machines to mold large sections of the vehicle chassis—such as the entire front or rear underbody structure—into single, high-strength aluminum pieces. In prototype testing, a single gigacast rear section replaced 86 individual stamped sheet-metal parts that previously required 33 separate welding steps, while the front structure consolidated 91 components into one.
Eliminating hundreds of stamped steel components, robotic welding arms, and complex fasteners drastically streamlines factory operations. Manufacturing analysts estimate that gigacasting reduces factory floor space requirements by 50% and slashes body-in-white assembly times by more than 40%. Lowering production complexity is critical for closing the profitability gap between electric vehicles and traditional internal combustion engine models, helping the automaker protect its operating margins.
Toyota originally planned to introduce its next-generation electric vehicle architecture domestically in Japan or in North America. However, changing market dynamics prompted a strategic pivot. While consumer adoption of pure battery-electric vehicles has moderated across Japan, Europe, and the United States, China remains the epicenter of electric mobility, accounting for approximately 60% of all global electric vehicle sales in 2025. Launching first in China allows the automaker to test its most advanced manufacturing technology where consumer demand for electric cars is strongest.
Producing in China grants the automaker direct access to the world’s most dense and cost-efficient automotive supply chain. China hosts leading global manufacturers of lithium-iron-phosphate battery cells, silicon carbide power inverters, high-efficiency electric motors, and artificial intelligence-powered smart cockpit electronics. Sourcing these critical components locally allows engineering teams to shorten vehicle development cycles from 52 months down to under 30 months, matching the development speed of agile Chinese electric vehicle manufacturers.
Deploying the next-generation architecture under the Lexus luxury marque builds upon strong brand equity in the region. Lexus delivered approximately 180,000 vehicles in China last year, achieving 3% growth despite intense discounting across the broader luxury automotive segment. Sponsoring next-generation electric SUVs under Lexus supports the brand’s broader corporate commitment to transition into a 100% all-electric luxury automaker by 2035, with global electric sales targeted to reach 1 million units annually.
The decision to launch the next-generation platform as an SUV reflects practical market realities. While earlier concept vehicles showcased low-slung electric sports sedans, consumer buying trends in China and North America have tilted heavily toward spacious crossovers and sport utility vehicles. Building high-riding luxury SUVs allows engineers to accommodate larger floor-mounted battery packs while delivering the elevated ride height and cargo versatility that premium buyers demand.
As traditional legacy automakers struggle to match the manufacturing speed and cost advantages of specialized electric vehicle builders, Toyota’s decision to deploy gigacasting in China marks a pragmatic embrace of global supply chain realities. By uniting Japanese quality control with localized Chinese supply chains and large-scale aluminum die-casting, the automotive pioneer is establishing a scalable foundation for next-generation electric mobility. The fall 2027 launch will serve as a crucial test of whether the world’s largest automaker can set a new global benchmark for electric vehicle manufacturing efficiency.
