China FAW Group, Toyota Motor and Guangzhou Automobile Group (GAC) signed a new strategic cooperation framework agreement in Guangzhou on October 8, according to Gasgoo. The deal marks a new phase in the three-way partnership, which has been built around the FAW Toyota and GAC Toyota joint ventures for over two decades.
Under the agreement, GAC plans to acquire the 50% stake in FAW Toyota currently held by China FAW, using a share issuance. After the transaction, FAW Toyota will continue to operate as an independent entity, while China FAW will become a significant strategic shareholder of GAC. The two Toyota joint ventures will then coordinate their activities in research and development, procurement, production and sales.
The move follows a strategic framework agreement signed earlier between China FAW and GAC, which outlined plans to deepen cooperation through asset and capital links, driven by technological innovation. The three parties said the new framework aims to strengthen the foundation for long-term collaboration and enhance the competitiveness of both joint ventures.
Two decades of partnership
China FAW and Toyota first established a comprehensive strategic cooperation in 2002, while GAC and Toyota formed their joint venture in 2004. Over the years, the two joint ventures have accumulated more than 23.56 million customers in China, according to Gasgoo.
In the new framework, the three companies will push FAW Toyota and GAC Toyota to support each other and boost their competitiveness, leveraging each party's strengths to accelerate electrification and intelligent technology deployment. They said they will adhere to principles of market orientation, legal compliance, equality and mutual benefit, and will follow due procedures to implement the cooperation.
The announcement comes as foreign automakers in China increasingly restructure their partnerships to adapt to the fast-changing market, where domestic brands now lead in new-energy vehicles. Toyota, like other global players, has been expanding its local R&D and production capabilities in China, and this new alignment with GAC and FAW could streamline its operations.
