Toyota recorded approximately 100,000 battery-electric vehicle sales in China over the course of last year.
GAC Secures 50 Percent Stake in FAW Toyota
Guangzhou Automobile Group (GAC) is acquiring a 50 per cent stake in FAW Toyota by purchasing shares from a subsidiary of the state-owned FAW Group. This move involves the two major Chinese joint ventures under a single strategic framework.
The transaction is financed through the issuance of new A-shares. It will also position FAW as the second-largest shareholder in GAC.
A New Joint Alliance for Research and Production
While FAW Toyota will maintain its formal independence, the companies plan to establish a joint alliance with GAC Toyota. This partnership will coordinate research and development, procurement, production, and sales functions.
FAW, Toyota and GAC have formed a strategic alliance.Under the agreement, GAC will acquire FAW’s 50% stake in FAW Toyota through a share issuance.Following the transaction, FAW Toyota will continue to operate as an independent entity, while FAW will become a major strategic… https://t.co/h5pkwRbEcW
Toyota has operated in China through two separate structures, partnering with FAW since 2002 and establishing its joint venture with GAC in 2004. That dual arrangement faced mounting strain as the Chinese market shifted toward electric vehicles, leaving foreign legacy automakers grappling with slower growth and persistent overcapacity.
GAC Drives Toyota’s Electric Portfolio
Recent sales figures underscore the divergence between traditional joint ventures and domestic competitors. Toyota’s roughly 100,000 battery-electric vehicle sales beat Volkswagen’s core brand figure of about 85,000 vehicles last year.
Within that total, GAC proved vital. The jointly developed bZ3X eSUV secured roughly 70,000 registrations in 2025, generating about 70 per cent of Toyota’s total battery-electric sales in the country.
The Domestic Competitor Gap
By contrast, domestic pure-play electric manufacturers operate on an entirely different scale. Competitor BYD sold more battery-electric vehicles in December 2025 alone than Toyota managed across the entire year.
| Automaker / Joint Venture | Key Partner / Structure | Estimated BEV Volume |
|---|---|---|
| FAW Toyota | FAW Group / Toyota (Restructured) | Included in Toyota total |
| GAC Toyota | GAC Group / Toyota | bZ3X eSUV (~70,000 units in 2025) |
| Toyota China Total | Combined Ventures | ~100,000 units (2025) |
| Volkswagen China (Core) | Legacy Brand Operations | ~85,000 units (2025) |
| BYD (Market Benchmark) | Domestic Independent | >100,000 units (December 2025 single month) |
Pooling Resources to Salvage Market Share
Under a recently signed framework agreement, GAC, FAW, and Toyota plan to contribute capital and pool industrial resources. This could eventually include utilizing plant capacity across each other’s manufacturing facilities.
The initial operational focus centers on accelerating the development of electric and intelligent vehicles.
