GAC plans to acquire part of FAW Group’s stake in a joint venture that Chinese state media identified as FAW Toyota, potentially bringing Toyota’s two main China operations closer together. The proposal is not finalized, and Toyota declined to comment.
The two ventures accounted for 7% of China’s passenger-vehicle sales in the first eight months of 2026, down from second place behind Volkswagen in 2021. FAW Toyota’s dealer network fell from 773 stores at its 2022 peak to 651 this year; GAC Toyota’s declined from 693 to 620.
China’s auto market has more than 100 brands, excess capacity and fast-moving domestic electric and hybrid rivals. Automobility founder Bill Russo told Reuters closer integration could cut overlap and improve efficiency, but said efficiency alone would not restore Toyota’s product relevance. Official data cited by Reuters put vehicle-manufacturing profit margins at 1.5%, their lowest in nearly a decade.
