GAC Group has unveiled a major asset restructuring plan to acquire the 50% stake in FAW Toyota held by China FAW Group, according to the Chinese business outlet Huxiu. The deal, announced on the evening of September 28, would leave GAC and Toyota each holding 50% of the joint venture that builds Toyota vehicles in China, with FAW exiting the manufacturing side.
Sales network stays under FAW's wing
Despite the headline change, FAW is not fully leaving the Toyota business. The restructuring only affects FAW Toyota Motor Co. (FTMC), the production entity. FAW Toyota Motor Sales Co. (FTMS), the separate sales company, keeps its current ownership: FAW holds 38%, Toyota Motor Corp. holds 32%, and FTMC holds 30%. That means FAW retains a direct equity link to the sales side and remains involved in the brand's commercial operations.
The move is designed to push closer cooperation between Toyota's two China joint ventures, often called "North Toyota" (FAW Toyota) and "South Toyota" (GAC Toyota). According to GAC's restructuring proposal, the goal is to reduce duplicate investment within the same brand system and stabilise profits from the joint-venture business. A service technician at a FAW Toyota dealership told the National Business Daily, a Chinese financial newspaper, that FAW Toyota 4S stores can already perform after-sales repairs and maintenance for GAC Toyota models, hinting that channel integration is underway.
The division of labour appears to be taking shape: GAC Toyota would focus more on research, development and supply chain, while FAW Toyota would handle marketing and distribution. For years, the two ventures operated separate product development, purchasing, production and sales teams, which led to overlapping models and wasted resources as each Chinese partner pursued its own interests.
A shareholder shuffle with strategic depth
According to data from the China Association of Automobile Manufacturers cited by Huxiu, the two Toyota ventures together accounted for 17.03% of sales in China's joint-venture passenger car market in 2025, putting the brand among the top foreign joint ventures. After the transaction closes, GAC will become the Chinese shareholder of both ventures, while FAW will hold shares in GAC itself as a strategic investor.
GAC's proposal states that FAW is expected to hold more than 5% of GAC's shares after the deal, making it a potential related party. Given GAC's current ownership structure, FAW would likely become one of the company's top three shareholders, behind Guangzhou Automobile Industry Group (54.02%) and HKSCC Nominees (27.56%).
There are also unconfirmed reports that Toyota China wants to create a unified sales company, with Toyota holding 50% and FAW and GAC each holding 25%. That plan has not been officially confirmed.
The restructuring also reflects a broader strategy by FAW to shift from owning assets to holding equity in listed companies. In 2025, FAW invested in Zhuoyu Technology, a driver-assistance company, and through its investment platform holds a 5% stake in Leapmotor. The Toyota deal, if completed, would mark a significant step in consolidating Toyota's fragmented China operations, though analysts say its long-term success will depend on how well the two ventures can truly integrate.
