AutoBeta(AutoBeta.net)07/24 Report--

According to media reports, under the premise of building an independent factory in China, Lexus will take the lead in the production of a new hybrid version of the UX and a new pure electric model, which will be sold in China as well as to overseas markets such as Japan. Toyota China and Lexus China both responded to reporters about the news that they would be the first to produce two new energy products in China. "rumors, no comment."

Earlier, it was rumored that Toyota was discussing with Shanghai authorities the possibility of building a wholly-owned factory, hoping to receive treatment similar to Tesla's, including tax breaks, policy support, land subsidies, and the ability to directly own and control factories without the need for local joint venture partners. For this move, foreign media believe that Toyota may borrow the factory to produce high-end brand Lexus electric vehicles.

As a luxury brand of Toyota, Lexus is no longer as popular in the Chinese market as it used to be. on the one hand, it is the change of car purchase preference in the domestic market, and the new energy vehicle brands represented by independent brands and new forces are growing rapidly. to a certain extent, it squeezes the market share of some luxury brands and imported cars, on the other hand, consumers' awareness of the brand image is enhanced, and the high-end image of imported brands begins to weaken. Data show that from January to May 2024, Lexus brand sold 69147 vehicles in China, an increase of 28% over the same period last year. Previously, Lexus launched an all-electric medium-sized SUV--RZ in China with a price range of 35.59-379900 yuan, but RZ sales were mediocre compared with fuel cars, with cumulative sales of only 445 vehicles in the first five months.

As for the possibility of Lexus being made in China, it is not the first time that it has been reported, almost every two or three years. The previous background was that tariffs on foreign imported cars were gradually falling, sales of imported Lexus cars were growing year after year, and the transportation distance between Japan and China was very short, so there was really no need for Lexus to make China. However, from the current market point of view, Toyota and Lexus in the Chinese market is not as easy as before, Lexus, as Toyota's core luxury brand, must take the lead in the electric transformation. In addition, electrification and intelligence are the future development direction of automobiles, and Chinese automobiles are far ahead of the global market because of this advantage.

China is Toyota's third largest market, after the United States and Japan. However, the slow process of electrification also makes it difficult for Toyota to improve in China's new energy market. Toyota is trying to change its gradual backwardness in the Chinese market.

Last year, Toyota decided to further strengthen local research and development of intelligent and electrified technology to ensure the competitiveness of its new energy products. In August 2023, Toyota's largest R & D center in China, Toyota Automobile Research and Development Center (China) Co., Ltd., officially changed its name to Toyota Intelligent Electric vehicle Research and Development Center (China) Co., Ltd. Engineers from the R & D centers of Guangzhou Auto Toyota, FAW Toyota and BYD Toyota will all join the R & D project led by IEM by TOYOTA. Denso and Ericsson will also participate in the research and development of IEM by TOYOTA to speed up the research and development of electric powertrain.

In addition, Toyota has also reached a partnership with Huawei to build a smart car solution. Toyota has laid out the research and development of localization technology in advance, and actively cooperate with domestic suppliers, perhaps the independent construction of Lexus plant is an important foothold of Toyota electric localization.

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