Toyota FAW Toyota denies market exit, price cuts

Toyota's joint venture in China, FAW Toyota, is pushing back against rumors that it plans to exit the market and slash prices.

Electrek reports that FAW Toyota issued a statement Monday night refuting the claims. The company said production, sales, and iterative development plans for all models are progressing on schedule. It also said it reserves the right to pursue legal action over what it calls false statements on online platforms.

The denial follows news that GAC Group announced plans on September 28 to acquire a 50 percent stake in FAW Toyota from FAW Group. GAC would issue A-shares priced at 5.75 yuan per share. Once the deal closes, GAC would take FAW's stake while Toyota retains its 50 percent. The move was widely viewed as part of Toyota's efforts to revamp slumping sales.

Toyota's sales in China fell 22.8 percent in August, the seventh straight month of decline, as demand for gas and hybrid models weakens amid rising fuel prices. The joint venture sells both traditional models like the Corolla, RAV4, and Avalon, as well as electric vehicles like the bZ3 and bZ5.

FAW Toyota said it will leverage the group's broader resources and technology for upcoming vehicles. No changes to pricing or a market exit were announced.

• China
• electric vehicles
• FAW Toyota
• GAC Group
• sales decline
• Toyota