Chinese carmaker GAC is now reportedly the sole partner of Toyota in China. For the uninitiated, Toyota’s Chinese operations have been mainly facilitated through joint ventures with GAC and FAW. However, a report from Nikkei Asia shared that GAC had allegedly bought FAW’s stake in its respective partnership.
That pertains to a 50% share in the FAW-Toyota joint venture, which is now owned by GAC. At the same time, the Japanese carmaker has retained its 50% stake. The report further discusses that the deal was primarily made to aid GAC, after it reported a $666 million (around P41.68 billion) loss in the first half of 2026.
Interestingly, this transaction also includes a significant portion of GAC going to FAW. That will then make FAW the second-largest shareholder of the struggling carmaker. The exact percentage was not disclosed, but the two state-owned companies seem to be included in an ongoing enterprise reform in China.
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As for Toyota China, it is unclear how this will affect its vehicle production and development. Previous reports have shared that Toyota will begin manufacturing range-extended electric vehicles to further its footing in China, but those plans have not been confirmed either.
The GAC-Toyota joint venture currently produces the bZ4X and the bZ3X for the Chinese domestic market, among other electrified vehicles. Meanwhile, Toyota’s partnership with FAW primarily built legacy models like the Corolla and the Crown Kluger, along with a couple of EVs. We can expect GAC-Toyota to bring these nameplates into production as both brands attempt to reach a new height of prosperity.
