reported that the new Shanghai factory is expected to commence production around 2027. Unlike previous joint venture models, this factory will operate independently.

Toyota's market share in China has declined, mirroring a trend among other Japanese automakers, while Chinese manufacturers have steadily gained traction. Reuters reported in November that Toyota aims to produce at least 2.5 million vehicles annually in China by 2030 as part of its efforts to reclaim market share.

As part of this strategy, Toyota launched the Toyota bZ3X electric SUV in China, priced competitively at $13,800.