Toyota (TM.US) will first test its own “integrated die-casting” Lexus Shanghai plant in China and start production in 2027

The Zhitong Finance App learned that Toyota Motor Corporation (TM.US) plans to use its own giant die-casting equipment to produce electric vehicles at a Lexus plant with an investment of 2 billion US dollars in China. This is one of Toyota's latest steps to reverse the decline in sales and enhance competitiveness in China. When asked if Toyota is purchasing giant die-casting machines from local suppliers, Toyota Chief Technology Officer Hiroki Nakajima said the company is developing the technology “in-house.” The plant in Shanghai is under construction and is expected to start producing cars in 2027.

“This is a huge opportunity to change the manufacturing system,” Nakajima Hiroki said in an interview in Brussels. “Every change starts from within the company.”

Lexus's Shanghai plant tests giant die-casting for the first time

The Lexus Shanghai plant will be Toyota's first factory to use giant die-casting machines. This move is also one of Toyota's efforts to enhance competitiveness in the Chinese market. Currently, local Chinese brands dominate the electric vehicle sector. This technology, known as “integrated die casting,” was first adopted by Tesla, and companies such as BYD and Xiaomi have also begun to use it.

Tesla CEO Musk once said, “Integrated die-casting technology allows Tesla to make new cars like toy cars.” The technology can mold the entire chassis part at once, replacing dozens of components that previously needed to be welded together, helping manufacturers save time, equipment, labor, and costs.

Toyota said it is currently testing the technology in Japan. The company declined to comment on potential suppliers associated with giant die castings.

The downside of this technology is its high cost and poor flexibility when producing different models. Due to the larger volume of replacement parts, losses due to accidents are also often higher.

Automakers often work closely with die-casting suppliers, such as the Italian Idra Group or China Haitian, to tailor equipment to their own needs.

Sales in China are under pressure, and Toyota is advancing a multi-path strategy

Toyota and its European peers have been dealing with the challenge of weak sales in China. In the first eight months of this year, Toyota's sales volume in China fell 19%.

Hiroki Nakajima made the above remarks at the Toyota Technical Center in Brussels and showcased the latest technology the company is developing, including advances in hybrid engines, electric vehicles, and hydrogen fuel cells. Toyota continues to advance its multi-path strategy and comprehensively lays out various power systems.

Meanwhile, Toyota is vigorously promoting factory automation to speed up development and invest billions of dollars in the latest equipment.