Toyota Refutes Reports of Unified Sales Channels in China, Says Pilot Limited to Few Cities

Toyota’s China sales have declined for three consecutive years since 2022.

On October 23, Toyota China responded to reports claiming that the company was implementing a “one city, one store” sales model in China—allowing a single dealership to sell both GAC Toyota and FAW Toyota vehicles—saying the interpretation was inaccurate.

A Toyota China spokesperson explained that the company is only conducting pilot programs in a very limited number of cities, typically those that have either a FAW Toyota or GAC Toyota 4S dealership, but not both.

The purpose, they said, is to make vehicle purchases and after-sales services more convenient for local customers and to expand the range of available models. The pilot scale remains “very limited,” and there are no plans to unify sales channels nationwide.

Industry sources previously revealed that Toyota China initiated the pilot program around July or August this year, involving roughly 10 cities.

In these pilot regions, selected 4S dealerships have been authorized to sell models from both of Toyota’s Chinese joint ventures, primarily to fill after-sales service gaps in certain areas.

Analysts suggest Toyota’s move may reflect growing pressure in the Chinese market. Toyota’s new car sales in China have declined for three consecutive years since 2022, falling from 1.9406 million units in 2022 to 1.9076 million in 2023 and 1.776 million in 2024, representing year-on-year drops of 0.2%, 1.7%, and 6.9%, respectively. Although sales recovered slightly in the first half of 2025, competition remains intense.

Toyota has also been relatively slow to advance in China’s fast-growing new energy vehicle (NEV) market. According to data from the China Association of Automobile Manufacturers, NEV sales in China reached 11.26 million units in 2024, up 37.9% year-on-year. Toyota’s limited NEV lineup has constrained its overall market share.

The challenges extend beyond Toyota. Japanese automakers have been broadly under pressure in China. Honda’s China sales in 2024 fell 30.9% to 852,300 units, the lowest since 2014, while Nissan’s dropped 12.2% to 696,600 units—the weakest since 2008. Although Toyota’s decline has been more moderate, it has not escaped the downward trend.

The latest figures show that Toyota China sold 158,900 vehicles in September 2025, down 1% year-on-year—its first monthly decline this year. FAW Toyota sales fell 4.2% to 71,031 units, while GAC Toyota sales rose 0.9% to 71,220 units.