Toyota Motor (NYSE: TM) is set to establish a wholly owned company in Shanghai to develop and manufacture electric vehicles (EVs) and batteries for its Lexus brand, with production slated to begin in 2027.

Japan's Toyota said Wednesday it will build an electric vehicle plant in Shanghai for its luxury Lexus brand, at a time when many foreign car companies are struggling in China.The world's top-selling automaker made the announcement as it hiked its annual net profit forecast to almost $30 billion as well as its revenue projection.

Japanese carmaker Toyota on Wednesday that it will build a wholly-owned subsidiary in Shanghai to develop and produce Lexus-branded electric vehicles and batteries. The subsidiary, which will be located in Shanghai's Jinshan district, will start production in 2027, said Toyota in a statement.

Toyota wants to establish a new wholly-owned subsidiary for the development and production of BEVs and batteries in the Jinshan district in southwest

Toyota Motor sold 10.8 million vehicles globally in 2024, retaining its position as the world’s biggest carmaker.

Toyota Motor will establish a wholly owned company in Shanghai to develop and produce electric vehicles and batteries for the Lexus brand, with production set to start in 2027, the world's top-selling automaker said on Wednesday.