Lexus is preparing to launch a next-generation electric vehicle in China, a model that will rely on advanced gigacasting technology to reduce weight and extend driving range. According to Nikkei Asia, production is scheduled to begin in the autumn of 2027 at a new plant in Shanghai, with the vehicle described as a crossover built using leading-edge manufacturing techniques.
The use of gigacasting, a process that moulds multiple aluminium body parts into a single large piece, was pioneered by Tesla and is gradually being adopted across the automotive industry. In the case of the Lexus EV, the weight savings could increase the crossover's range by several percent. Toyota, Lexus's parent company, typically reserves its most sophisticated production methods for plants in Japan or the United States, but the Shanghai project is being billed as a rare exception.
The move comes as Lexus seeks to strengthen its position in China, the world's largest electric vehicle market, where it has struggled to compete with domestic manufacturers. The brand sold 182,458 vehicles in China in 2025, compared with 370,260 units in the United States over the same period. The new crossover is expected to be exclusive to the Chinese market, a notable shift for an automaker whose current lineup includes familiar global models such as the NX, RX, GX, LX, ES, LS, LM, and RZ.
The RZ is currently Lexus's only fully electric offering in a market that increasingly demands them. The new model is expected to play a significant role in reviving the brand's fortunes in China, where local EV makers have captured the attention of buyers with aggressive pricing and rapid technological innovation.
Initial production is reportedly planned at around 1,000 units per month during the first year, with output expected to ramp up to tens of thousands of units annually as the plant scales. The Shanghai facility represents a significant investment by Toyota, which has been slower than many rivals to embrace full electrification but has recently expanded its electric lineup across both the Toyota and Lexus brands.
Gigacasting has become a key competitive battleground in EV manufacturing. The technique reduces the number of parts and welds required, cutting production costs and assembly time while improving structural rigidity. Ford has confirmed it will use the process on its upcoming Fathom model, and other manufacturers are exploring similar approaches as they seek to close the cost gap with Tesla.
For Lexus, the Shanghai-built crossover marks a strategic bet on China's EV market and a departure from its traditional approach of producing vehicles close to their primary markets. The decision to build the model exclusively in China, using cutting-edge technology, signals the brand's intent to compete seriously in a market where it has so far lagged behind both local champions and global rivals.
Details about the vehicle's design, battery capacity, and pricing remain scarce, but the confirmation of gigacasting and the production timeline suggest the model is well advanced in development. The crossover is expected to be a cornerstone of Lexus's efforts to rebuild its Chinese sales base and demonstrate that the brand can compete on technology as well as luxury.