04:57 AM EST, 02/05/2025 (MT Newswires) -- Toyota Motor ( TM ) said Wednesday that it has decided to form a new wholly-owned company in Shanghai to develop and produce electric vehicles and batteries.

The entity will develop a new EV under the Lexus brand, with an initial production capacity of around 100,000 units per year and production expected to start from 2027 onwards, the company said.

The Japanese automaker also said it will sign a comprehensive partnership agreement with the Shanghai municipal government in China for carbon neutrality.