TOKYO - Toyota Motor Corp announced on Wednesday that it will construct a new Lexus factory in Shanghai as the company seeks to strengthen its development and manufacturing capabilities in the Chinese market.

The plant, set to begin operations in 2027 or later, will focus on producing electric vehicles (EVs) and automotive batteries.

Unlike previous ventures in China, the factory will be wholly owned by Toyota rather than operated as a joint venture. The initial production capacity is expected to be around 100,000 units per year, with approximately 1,000 new jobs planned at the start of operations.

The company on Wednesday raised its net profit forecast for the fiscal year ending March 2025 to 4.52 trillion yen ($29.5 billion) from its earlier estimate of 3.57 trillion yen amid production recovery and the weaker yen.