Toyota will consolidate its two primary Chinese joint ventures, FAW Toyota and GAC Toyota.
Guangzhou Automobile Group (GAC) will acquire a stake in FAW Toyota, which is currently a partnership between Toyota and China FAW Group.
The restructuring aims to improve efficiency as foreign brands face a rapid shift toward electric vehicles and dominant local competitors.
Toyota’s total market share in China is declining. Both joint ventures have recently reduced the size of their dealer networks.
This move represents a significant overhaul of the traditional foreign joint-venture model in the Chinese market.