Toyota has signed a $2 billion deal to build a wholly-owned electric vehicle plant in Shanghai, as the Japanese automaker strengthens its position in China’s growing EV market during heightened US-China trade tensions.
Japanese automaker Toyota Motor Corporation has signed a $2 billion agreement to establish a fully-owned electric vehicle (EV) plant in Shanghai, state media reported on Tuesday. The announcement comes as trade tensions between the United States and China escalate, with tariffs impacting key industries, including automotive and metals.
Toyota reached the deal with the Shanghai municipal government, aiming to enhance its presence in the world’s largest automotive market. According to Beijing-based Xinhua News, the company will invest a total of 14.6 billion yuan (approximately $2 billion) in the new energy vehicle (NEV) project based in Shanghai’s Jinshan district.
The project will focus on the research, development, production, and sales of Lexus-branded EVs and electric vehicle batteries. It follows a similar move by Tesla, which established its Shanghai Gigafactory in the city.
Tatsuro Ueda, chief executive officer of the China Region and chairman of Toyota Motor (China) Investment, said the initiative would introduce advanced technologies, contributing to a leading carbon neutrality model with global influence.
Construction of the plant is scheduled to begin in June, with production expected to start in 2027. While Toyota did not confirm production capacity details on Tuesday, earlier estimates in February suggested an initial output of around 100,000 units per year. The project is expected to create roughly 1,000 new jobs during its early phase.
The announcement follows Honda Motor’s decision to relocate parts of its production to the United States, as Japanese companies adjust to avoid a 24% tariff imposed by the Trump administration. The tariff policy affects automotive, steel, and aluminum products, while negotiations between Tokyo and Washington continue after a 90-day tariff reprieve for all nations except China.
As the US has raised tariffs on Chinese imports to as high as 245%, Beijing has responded with tariffs reaching up to 125% on American goods.
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Nissan Motor announced major cost-cutting measures, including the elimination of 11,000 additional jobs and reduced production, as the automaker faces declining profits and tough market conditions.
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Nissan Motor announced major cost-cutting measures, including the elimination of 11,000 additional jobs and reduced production, as the automaker faces declining profits and tough market conditions.
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Vietnam and Azerbaijan plan to expand cooperation in oil exploration and production. Several energy sector agreements were signed during the recent state visit of To Lam, General Secretary of the Communist Party of Vietnam, to Azerbaijan.
Asian stock markets soared on Tuesday after the United States and China agreed to a 90-day halt in their trade war, easing recession fears and fuelling a region-wide buying spree.
In a notable shift from traditional Republican policy, President Donald Trump has proposed raising taxes on high-income earners to help finance broader tax cuts for middle- and working-class Americans.
Sweden announced Tuesday it will propose that the European Union to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), aiming to create the world’s largest free trade area.
Albanian Prime Minister Edi Rama has secured a historic fourth term, with his Socialist Party winning the majority in Sunday’s election despite opposition allegations of irregularities.
President Recep Tayyip Erdoğan met with NATO Secretary-General Mark Rutte in Ankara on Tuesday, just ahead of a pivotal two-day informal meeting of the alliance’s foreign ministers in Antalya, which will focus on European security and preparations for the upcoming NATO summit.
Two senior US envoys are expected to attend the upcoming Russia-Ukraine peace talks in Istanbul, where Ukraine's President Zelenskyy has confirmed his participation and invited Russia’s Vladimir Putin, according to US media reports.
Nissan Motor announced major cost-cutting measures, including the elimination of 11,000 additional jobs and reduced production, as the automaker faces declining profits and tough market conditions.
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