Toyota could make Lexus luxury models in China, senior managing officer Hiroji Onishi, told Kyodo News at the Shanghai show.
China is the second biggest market for Lexus outside of North America although Onishi did not say when production there might begin.
He said Toyota first needs to increase Lexus sales in China and establish a system that would allow the company to procure high-quality parts. It is expected that the first model to be assembled there would be the medium-sized ES sedan.
Currently, Toyota manufactures Lexus cars in Japan and Canada. The carmaker said Friday it will start building the ES in the United States in 2015.