China FAW Group, Toyota Motor and GAC Group signed a new strategic cooperation framework agreement in Guangzhou on October 8, 2026, according to PCauto. The pact reshapes the ownership of FAW Toyota, one of Toyota's two main joint ventures in China, and is intended to deepen industrial coordination among the three parties as the venture accelerates its electric and intelligent vehicle push.
Executives from all three companies attended the signing ceremony, including FAW Group president Liu Yigong, Toyota Motor president Kenta Kon, and GAC Group chairman Feng Xingya. Under the agreement, GAC plans to acquire the 50% stake in FAW Toyota currently held by China FAW through a share issuance. After the transaction closes, FAW Toyota will continue to operate independently, and China FAW will become a significant strategic shareholder of GAC Group.
Once the deal is completed, FAW Toyota and GAC Toyota will jointly take on research and development, procurement, production and sales functions for the two joint ventures. The arrangement builds on an earlier strategic framework signed between China FAW and GAC Industrial, which envisioned asset and capital linkage, technology-driven innovation and cross-regional resource coordination.
Two decades of Toyota partnerships converge
The new framework formalises cooperation between companies that have worked with Toyota for more than two decades. China FAW and Toyota reached a comprehensive strategic cooperation agreement in 2002, and GAC Group and Toyota established a joint venture in 2004. Through the FAW Toyota and GAC Toyota ventures, the two partnerships have accumulated more than 23.56 million customers in the Chinese market.
PCauto reports that the three sides will jointly promote the coordinated development of FAW Toyota and GAC Toyota, improve competitiveness and help both ventures accelerate their transition to electrified and intelligent vehicles. The companies said they will follow market-oriented principles, comply with regulations and complete all required approval procedures before the cooperation measures are implemented.
The move comes as foreign automakers in China restructure their local partnerships to adapt to the rapid shift toward battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), where domestic brands have taken a leading role. Toyota has been expanding its electrified lineup in China, including battery-electric models and plug-in hybrids, while also developing intelligent driving features tailored to the local market.
Ownership reshuffle keeps brands intact
GAC's acquisition of FAW's stake in FAW Toyota means the venture's operations will remain under the same management structure, but its ownership will now sit with GAC alongside Toyota. FAW Toyota and GAC Toyota will continue to operate as separate brands, with the two ventures sharing resources in development, procurement and production to reduce costs and improve efficiency.
The agreement is the latest sign of consolidation in China's auto industry, where joint ventures are being reorganised to cope with intensifying competition and the rise of domestic EV makers such as BYD, Nio, Xpeng and Li Auto. For Toyota, the restructuring keeps both of its Chinese ventures aligned under a single local partner, potentially simplifying decision-making and investment in electrification.
PCauto noted that the cooperation is an important part of deepening ties between China FAW and GAC Group, and will help stabilise the long-term relationship among all three parties. The companies did not disclose a timeline for completing the share acquisition or the financial terms of the transaction.
