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Toyota's Gigacasting EV Plant Set for Shanghai 2027
16 Oct
Summary
- Toyota will build EVs in Shanghai using proprietary gigacasting technology.
- The new plant, a $2 billion investment, begins production in 2027.
- Toyota aims to revitalize China sales, which have declined 19%.
Toyota is set to commence electric vehicle production at its Shanghai Lexus plant in 2027, marking a significant $2 billion investment. This facility will be the first to employ Toyota's proprietary gigacasting technology, which streamlines car manufacturing by casting large chassis components as single units. Toyota's Chief Technology Officer, Hiroki Nakajima, emphasized that the company developed this technology in-house, viewing it as a transformative manufacturing innovation.
The adoption of gigacasting, a method pioneered by Tesla and also used by BYD and Xiaomi, promises reduced costs and production time by minimizing the need for welding numerous smaller parts. However, the technology presents challenges, including high adoption costs and reduced flexibility in shifting between models, alongside more expensive repairs for accident damage due to larger, single-piece components.
This strategic expansion in China occurs amidst a challenging market where Toyota's sales have fallen 19% year-to-date. The automaker is competing against dominant domestic brands in the EV sector, while the broader market grapples with reduced consumer spending due to an ongoing property slump. Toyota also showcased advancements in hybrid, fuel cell, and EV engine technology at its technical center in Brussels.
