GAC Group plans to acquire 50% of equity in FAW Toyota

China FAW Group, Toyota Motor Corporation and GAC Group sign a new strategic cooperation framework agreement in Guangzhou, the capital of Guangdong province, on Thursday. (Photo provided to chinadaily.com.cn)

GAC Group, a major automobile manufacturer in Guangzhou, the capital of Guangdong province, plans to acquire 50 percent of the equity in FAW Toyota held by China FAW Group through a share issuance, the company said on Thursday.

The announcement was made after China FAW Group, Toyota Motor Corporation and GAC Group signed a new strategic cooperation framework agreement on Thursday.

Upon completion of the transaction, GAC Group will become the common Chinese shareholder of Toyota's two joint ventures in China, and will coordinate the research and development, procurement, production and sales activities of both joint ventures.

Since China FAW and Toyota Motor Corporation reached a comprehensive strategic cooperation agreement in 2002, and GAC Group and Toyota established a joint venture in 2004, the three companies have collaborated through FAW Toyota and GAC Toyota.

Over the years, both joint ventures have deeply cultivated their markets and operated independently, accumulating over 23.56 million users in the Chinese market and building a strong market foundation.

By coordinating localized R&D, supply chain systems, production bases and market expansion, the collaboration aims to maximize scale synergy effects, effectively reduce redundant construction and investment, and share the costs of technological innovation.

According to data from the China Association of Automobile Manufacturers, the combined sales of both Toyota joint ventures accounted for 17.03 percent of the joint venture passenger car sales in 2025, ranking among the top in market share for joint venture brands.