GAC Group has announced a major strategic move to acquire a 50% stake in FAW Toyota Motor Co., Ltd. through a share issuance plan. The company also intends to raise supporting funds, with the issuance price set at 5.75 yuan per share. Trading of GAC Group’s shares is scheduled to resume on September 29, 2026.
The target company, FAW Toyota, is a joint venture between FAW Group and Toyota Motor. This acquisition will effectively create a “North-South” dual-joint-venture structure for Toyota within GAC Group’s portfolio, significantly altering the competitive landscape of the Chinese automotive market.
Prior to this transaction, GAC Group operated as a comprehensive automotive conglomerate with a focus on vehicle manufacturing, spanning R&D, parts production, mobility services, and energy ecosystems. The company expects this acquisition to positively impact its investment returns and net profit, further strengthening its long-term operational stability.
The restructuring between the two automotive giants has drawn significant market attention. Under the terms of the agreement, FAW Group will become the second-largest shareholder of GAC Group, holding strategic influence.
GAC Group, headquartered in Guangzhou, manages a diverse brand portfolio including Aistaland, Trumpchi, GAC Aion, Hyptec, GAC Honda, and GAC Toyota. Meanwhile, FAW Group, one of China’s three major central state-owned automotive enterprises, oversees brands such as Hongqi, FAW Jiefang, Bestune, and joint ventures like FAW Toyota and FAW-Volkswagen.
Financial data for 2025 shows GAC Group recorded a total revenue of 96.542 billion yuan, a year-on-year decline of 10.43%, with a net loss of 8.784 billion yuan. The group sold 1.7215 million vehicles during the year. In contrast, FAW Group reported a robust 2025 revenue of 541.55 billion yuan, with total vehicle sales reaching 3.302 million units, marking a 3.2% year-on-year growth.
