FAW, GAC Reshape Toyota Joint Ventures in New Strategic Deal

Tripartite agreement restructures Toyota’s China footprint

On 8 October 2026, China FAW Group, Toyota Motor Corporation, and GAC Group signed a new strategic cooperation framework agreement in Guangzhou. The deal marks the latest evolution in a partnership that began more than two decades ago.

The centerpiece of the arrangement is GAC’s planned acquisition of FAW’s 50% stake in FAW Toyota Automobile Co., Ltd. through a share-issuance transaction. Upon completion, FAW Toyota will continue to operate independently, while FAW will become a significant strategic shareholder of GAC Group.

The move consolidates Toyota’s operations in China around two joint ventures—FAW Toyota and GAC Toyota—that have collectively amassed more than 23.56 million customers in the market. Under the new framework, the two entities will coordinate research and development, procurement, manufacturing, and sales functions.

"This cooperation is an important step in deepening the partnership between China FAW and GAC Group, and it will steadily strengthen our long-term tripartite relationship," said the joint statement from the signing ceremony.

Executives present at the signing included Liu Yigong, general manager of China FAW; Takenaka Kenta, president of Toyota Motor Corporation; and Feng Xingya, chairman of GAC Group. Signatories were Liu Changqing (FAW), Ueda Tatsuro (Toyota’s China head), and He Xianqing (GAC).

Background: a quarter-century of collaboration

FAW and Toyota first established a comprehensive strategic partnership in 2002, followed by the creation of GAC Toyota in 2004. Over the years, the two joint ventures have been the main vehicles for Toyota’s domestic production and sales.

The current framework builds on a prior strategic agreement between China FAW and GAC Industrial Group, which called for asset-and-capital linkage, technology-driven expansion, and cross-regional industrial coordination.

Under the new structure, the three parties will work to accelerate the electrification and intelligence transformation of both joint ventures, leveraging combined resources and market orientation.

The deal still requires regulatory approvals and compliance procedures before it can be finalized.

What comes next

Once the transaction closes, FAW Toyota and GAC Toyota will operate under a more integrated model, sharing platforms, supply chains, and R&D pipelines. Industry analysts say the restructuring could reduce duplication and sharpen the competitive positioning of Toyota’s China business as the market shifts toward new-energy vehicles.