Toyota Signs Contract to Build Fully-Owned Electric Vehicle
(MENAFN) Japanese automotive powerhouse Toyota Motor Corporation has officially signed a USD2 billion contract to build a fully-owned electric vehicle (EV) manufacturing facility in Shanghai, based on state media reports.
This initiative emerges as tensions intensify between the United States and China over trade, particularly amid the widening tariff dispute spearheaded by Washington.
The world's leading automobile producer entered into the agreement with the Shanghai city authorities in what is seen as a tactical effort to strengthen its footprint in China, currently the largest car market on the planet, as per the media.
Under the terms of the partnership, Toyota will inject a total of 14.6 billion yuan (approximately USD2 billion) into a new energy vehicle (NEV) initiative situated in the Jinshan area.
This project is aimed at the design, assembly, and commercial distribution of Lexus electric cars and EV batteries.
This announcement follows closely behind Honda Motor’s decision to shift part of its domestic manufacturing to the United States—a move driven by Japan’s strategy to circumvent steep 24 percent import tariffs levied by the Trump administration.
These tariff measures are expected to significantly affect the automobile, steel, and aluminum industries, prompting Tokyo to enter into discussions with Washington.
The US president recently offered a 90-day exemption to most countries, with China being a notable exception.
As cited by the media, Tatsuro Ueda, the CEO of Toyota’s China division and chairman of Toyota Motor (China) Investment, stated the project would introduce groundbreaking technologies and serve as a pioneering model in carbon neutrality.
This initiative, he added, will have substantial impact both within China and on a global scale.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
