GAC Moves to Take 50% of FAW Toyota, Eyes Closer Ties Between Toyota's Two China Ventures

GAC Group has unveiled a preliminary restructuring blueprint that would see it issue new shares to acquire China FAW’s 50 percent holding in FAW Toyota, a step that would hand the Guangzhou-based automaker a stake in both of Toyota’s Chinese joint ventures. Trading in GAC’s Shanghai-listed A-shares, suspended since September 14, was set to reopen on Tuesday, September 29.

The share issuance is priced at 5.75 yuan apiece, though the final transaction value and share count remain open pending audit and valuation work. If the deal closes, FAW would become GAC’s second-largest shareholder, while ultimate control of GAC stays with the Guangzhou State-owned Assets Supervision and Administration Commission. FAW Toyota would be folded into GAC’s joint-venture portfolio.

The strategic logic centers on coordination. GAC intends to align localized research and development, supply chains, production sites and market expansion efforts across FAW Toyota and GAC Toyota, cutting duplicated investment and sharing the cost of new technology. FAW Toyota runs vehicle plants and engine facilities in Tianjin, Changchun and Chengdu, with a lineup covering gasoline, hybrid and battery-electric models. Together, the two Toyota ventures represented 17.03 percent of China’s joint-venture passenger vehicle sales in 2025, according to CAAM data cited in the plan.

Financially, the acquisition is meant to lift GAC’s results after a net loss attributable to shareholders in 2025, hurt by price competition, weaker joint-venture income and transformation spending. FAW Toyota’s own earnings are softening: unaudited figures put 2025 revenue at 108.62 billion yuan, up from 106.57 billion yuan, while net profit slipped to 4.23 billion yuan from 4.72 billion yuan. In the first half of 2026 it booked 40.73 billion yuan in revenue and 1.01 billion yuan in net profit. GAC also plans to place shares with up to 35 qualified investors to raise supporting funds capped at the acquisition price, though the deal does not hinge on that fundraising. The transaction still needs further board review, shareholder approval, Shanghai Stock Exchange review and CSRC registration, and completion is not assured.