Toyota (TM.US) to Pilot Its Own "Integrated Die Casting" in China; Lexus Shanghai Plant to Start Production in 2027

According to Golden Ten Data, Toyota (TM.US) plans to use its own giga-casting equipment to produce electric vehicles at its Lexus factory in China, which involves an investment of $2 billion. This is one of Toyota's latest measures to reverse declining sales in China and enhance its competitiveness. When asked whether Toyota would source giga-casting machines from local suppliers, Chief Technology Officer Hiroki Nakajima stated that the company is developing this technology "in-house." The Shanghai-based factory is currently under construction and is expected to start vehicle production in 2027.

"This is a great opportunity to change our manufacturing system," Nakajima said in an interview in Brussels. "Every transformation begins internally within the company."

Lexus Shanghai Factory's First Trial of Giga-Casting

The Lexus Shanghai factory will be the first Toyota plant to apply giga-casting machines. This move is also part of Toyota's efforts to boost competitiveness in the Chinese market, where domestic brands currently dominate the electric vehicle sector. The technology, known as "integrated casting," was first adopted by Tesla and is now being used by companies such as BYD and Xiaomi.

Tesla CEO Musk has said that "integrated casting technology allows Tesla to build new cars like making toy cars." The technology can form an entire chassis section in one go, replacing dozens of components that previously had to be welded together, helping manufacturers save time, equipment, labor, and costs.

Toyota said that it is currently testing the technology in Japan. The company declined to comment on potential suppliers related to giga-casting equipment.

The main shortcomings of this technology are its high cost and lower flexibility when producing different models. Because the replacement parts are larger, accident-related losses also tend to be greater.

Automakers usually work closely with casting suppliers, such as Italy's Idra Group or China's Haitian, to customize equipment according to their needs.

Toyota Advances Multi-Path Strategy as Sales Struggle in China

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

Nakajima made the above remarks at the Toyota Technical Center in Brussels and showcased the company's latest technological developments, including progress on hybrid engines, electric vehicles, and hydrogen fuel cells. Toyota continues to push its multi-path strategy, embracing a comprehensive layout for all types of powertrains.

At the same time, Toyota is vigorously promoting factory automation to accelerate development speed and is investing billions of dollars in the latest equipment.