GAC Group plans to acquire a 50 percent stake in FAW Toyota from China FAW by issuing new shares. The transaction aims to coordinate research, production, supply chains, and sales between Toyota's two major Chinese joint ventures. Following the deal, FAW is expected to become the second-largest shareholder in GAC, while the Guangzhou State-owned Assets Supervision and Administration Commission will remain the ultimate controller.
The acquisition price for the new shares is set at ¥5.75 per share. The final number of shares and the total transaction value remain subject to ongoing audit and valuation processes. Additionally, GAC intends to raise further funds by issuing shares to up to 35 qualified investors to support working capital, debt repayment, and specific projects for FAW Toyota.
In 2025, the combined sales of FAW Toyota and GAC Toyota represented 17.03 percent of the joint-venture passenger vehicle market in China. FAW Toyota reported a 2025 net profit of ¥4.23 billion, down from ¥4.72 billion in 2024. For the first half of 2026, the company recorded a net profit of ¥1.01 billion on revenue of ¥40.73 billion.
GAC reported a net loss for 2025, citing intense industry price competition and declining earnings from its existing joint ventures. The company expects the acquisition to improve its investment income and overall profitability. The deal aligns with national policies encouraging consolidation in the Chinese automotive sector, though it still requires regulatory and shareholder approvals.
