Guangzhou Automobile Group (GAC) is set to acquire a 50 per cent stake in FAW Toyota, currently held by a subsidiary of the state-owned FAW Group. The transaction will be financed through the issuance of new A-shares, and FAW will become the second-largest shareholder of GAC as part of the deal.
Although FAW Toyota will maintain its independent status for now, the companies have signed a framework agreement to form a strategic alliance. This partnership aims to integrate functions such as research, development, procurement, production, and sales between FAW Toyota and the existing GAC Toyota joint venture.
The restructuring addresses challenges including market growth deceleration, high overcapacity, and competition from local electric vehicle manufacturers. The alliance will focus on sharing industrial resources and accelerating the development of intelligent and electric vehicles.
GAC has become a key partner for Toyota in the electric vehicle sector. In 2025, Toyota recorded approximately 100 000 battery-electric vehicle registrations in China, with the GAC-developed bZ3X eSUV accounting for 70 000 of those sales. This performance allowed Toyota to surpass Volkswagen, which sold 85 000 units.
