On July 26, during the Provincial Key Project Work Conference held by the Guangdong Provincial Government, Zhong Yangsheng, a member of the Standing Committee of the Guangdong Provincial Party Committee and Deputy Governor of Guangdong Province, officially announced that Guangzhou Toyota’s vehicle project had received approval from the State Council. This news was soon confirmed by both Guangzhou Automobile Industry Group (GAC) and Toyota China. The long-awaited partnership between GAC and Toyota has finally reached a major milestone.
"Like two people in love, the two sides have decided to join forces, and now the most critical obstacle has been cleared with the blessing of the parents," one insider remarked. Although the official marriage certificate—meaning formal joint venture approval—has not yet been issued, both parties are expected to finalize preparations within the next few weeks. This development marks a significant step forward for both companies.
The process has taken over a year, and as the final details come into focus, the previous tensions and past conflicts between GAC and Toyota seem to be fading into the background. With this marriage on the verge of becoming real, all involved parties are urged to look ahead rather than dwell on the past.
Toyota's strategic presence in China is well-established, with strong partnerships in cities like Changchun, Tianjin, Chengdu, and Guangzhou. While GAC-Jiamei has already utilized two joint-venture models for Toyota, the Japanese automaker still has more pieces on the board. One remaining piece is the commercial vehicle sector, currently represented by a Sichuan-based joint venture. Toyota still has one slot left, and where this position goes could significantly impact GAC’s future.
GAC is keen to secure this opportunity. According to sources, the company is preparing to sign a comprehensive cooperation agreement with Toyota, covering both passenger and commercial vehicles. With the recent approval of the Guangzhou Toyota vehicle project, GAC now operates three major passenger car projects: Guangzhou Honda, the Honda export base, and Guangzhou Toyota. However, its commercial vehicle segment remains underdeveloped.
Currently, GAC’s commercial vehicle brands such as Yangcheng Automobile, Guangzhou Isuzu, and Guangzhou Denway have not yet gained significant market traction. Despite being a large automotive group, GAC still falls short of the 15% market share target set by the new automobile industry policy. Given the limited growth potential in the passenger car market, expanding its commercial vehicle capabilities has become a logical next step.
But will Toyota truly expand its collaboration with GAC beyond passenger cars? Looking at Toyota’s current layout in China, FAW already holds joint ventures for both passenger and commercial vehicles. If Toyota assigns the remaining commercial vehicle joint venture to GAC, it would create a balanced partnership between FAW and GAC, reinforcing a north-south division in its Chinese operations.
However, Toyota may also explore new partners outside of FAW and GAC. Notably, its technical support for Brilliance Jinbei’s Haishi Passenger Car Project has remained active. Could this lead to a full-scale joint venture? Toyota’s previous response was clear: "Further cooperation with Brilliance Jinbei is not impossible," according to Chinese regulations.
While the final decision remains uncertain, the location of any new joint venture will likely play a crucial role in shaping the future relationship between GAC and Toyota. As the dust settles on their long-awaited partnership, the next chapter in their collaboration is just beginning.
commercial charging station, ev charger,level 3 charger,DC electric car charger
Xuchang Shuoniu New Energy Technology Co., Ltd. , https://www.shoniu.com