Lexus GM outlines Lexus’ growth priorities for 2027

Toyota plans to start producing its hybrid-only Lexus NX in Ontario, Canada, this December. The company is investing hundreds of millions in its Cambridge plant, following a $1.1bn investment in the RAV4. Toyota built 537,518 vehicles in Canada last year, with 85% exported. This expansion contrasts with cutbacks by other automakers due to trade tensions and competition.

Toyota expects its Arene software platform to be in 10 million new vehicles and 50 models by 2030, according to the company. The platform was first introduced in the revamped RAV4 SUV, launched in 2025. Toyota aims to expand the platform's deployment further by 2035, including in vehicles from alliance partners. Software-defined vehicles allow over-the-air updates for safety, autonomous driving, and entertainment features.

Toyota Australia agreed to a AU$750 million settlement for class actions over diesel particulate filter (DPF) issues in HiLux, Prado, and Fortuner models, pending court approval. The settlement covers 264,170 vehicles sold between 2015 and 2020, with defects reducing vehicle value. Toyota Motor Corporation stated the payout is immaterial to its finances.

Argentina approved a 30-year tax deal for Toyota's $1.3B plant to produce an 'electrified' vehicle. The project, pending Toyota's final approval, may include a battery-electric or hybrid pickup, likely the Hilux. The deal offers tax breaks and export incentives, with potential annual exports of $1.28B.

The EU set an annual import cap of 350,000 Chinese hybrid vehicles, effective December 1, 2026, increasing by 6% yearly. Toyota (TM), a major hybrid vehicle manufacturer, will be impacted. TM's P/S ratio is 0.72, below its historical median, and it has a GF Score of 74/100, indicating strong valuation and growth but weak momentum.

GAC Group plans to acquire 50% of FAW Toyota's equity from China FAW Group via a share issuance, following a new strategic agreement. The deal will make GAC a common shareholder in Toyota's two Chinese joint ventures, aiming to streamline operations and reduce costs. The combined sales of both ventures accounted for 17.03% of joint venture passenger car sales in 2025, per industry data.