FAW Toyota, a joint venture between FAW Group and Toyota, officially denied recent reports suggesting the company is slashing vehicle prices or planning to exit the Chinese market. The manufacturer stated that all production, sales, and development schedules for its current lineup remain unchanged.
The clarification follows a September 28 announcement regarding a restructuring of the venture. GAC Group plans to acquire a 50% stake in FAW Toyota by issuing new A-shares at a price of ¥5.75 per share. Once the deal is finalized, GAC Group will hold half of the joint venture, while Toyota will retain the remaining 50%.
FAW Toyota was originally formed in 2000 as a partnership between FAW Group and Toyota. The company currently produces various models, including the Corolla, RAV4, and Avalon, alongside electric vehicles such as the bZ3 and bZ5. The restructuring aims to streamline operations and address declining sales performance.
Toyota reported a 22.8% decline in sales across China during August. This result marks the seventh consecutive month of falling demand, which the company attributes to weakening interest in gasoline and hybrid models amid rising fuel costs. The venture plans to utilize broader group resources for future vehicle development.
