GAC Group has officially announced plans to acquire a 50% stake in FAW Toyota Motor Co., Ltd. through a share issuance, a move set to reshape the landscape of China’s automotive industry. The transaction, which also includes the raising of supporting funds, is priced at 5.75 yuan per share. Trading of GAC Group’s stock is scheduled to resume on September 29, 2026.
The target company, currently a joint venture between FAW Group and Toyota Motor Corporation, will now see GAC Group enter the fold, effectively creating a “North-South” dual-joint-venture structure for Toyota in China. Prior to this deal, GAC Group maintained a comprehensive automotive portfolio spanning R&D, manufacturing, parts, mobility services, and energy ecosystems. The company expects this acquisition to positively impact its investment income and net profit, strengthening its long-term operational capabilities.
Market speculation regarding a potential restructuring between the two automotive giants had been mounting since mid-September. Under the terms of the agreement, FAW Group is set to become the second-largest shareholder of GAC Group, holding significant strategic influence.
Headquartered in Guangzhou, GAC Group’s brand portfolio includes Aistaland, Trumpchi, GAC Aion, Hyptec, GAC Honda, and GAC Toyota. Conversely, FAW Group, founded in 1953 and based in Changchun, manages brands such as Hongqi, Jiefang, and Bestune, alongside its joint ventures with Toyota and Volkswagen.
Financial data highlights the strategic necessity of this move. In 2025, GAC Group reported a total revenue of 96.54 billion yuan (approx. $13.7 billion), a 10.43% year-on-year decline, with a net loss of 8.78 billion yuan (approx. $1.25 billion). The group sold 1.72 million vehicles during the year. In contrast, FAW Group reported a robust 2025 revenue of 541.55 billion yuan (approx. $76.8 billion) with total sales reaching 3.3 million vehicles.
