Toyota intends to launch the next generation of the Corolla in 2028, with production based in China. The new model will include a fully electric version, marking a significant shift for the best-selling nameplate, which currently relies on petrol and hybrid powertrains.
The vehicle will utilize the new Multipathway architecture, designed to support electric, hybrid, and petrol engines. Toyota plans to extend this platform to other vehicles, including a battery-electric SUV under the Lexus brand, which is expected to enter production in China starting in 2027.
The company is adjusting its regional strategy by prioritizing battery-electric development directly for the Chinese market. This follows the release of the bZ3C and bZ3X models, which were developed independently through local joint ventures with FAW and GAC.
Toyota faces declining sales in China, reporting 118 449 units sold in August, a 23 per cent decrease year-over-year. To address this, the company is restructuring its local operations, including a deal where GAC acquires FAW’s 50 per cent stake in FAW Toyota.
The transaction involving FAW Toyota will be funded through the issuance of new A-shares. While FAW Toyota will maintain its independent status for now, FAW is set to become the second-largest shareholder in GAC as part of the broader corporate realignment.
