The next Toyota Corolla is expected to come from China — also in a fully electric version.

According to a Japanese media report, Toyota plans to produce the next generation of the Corolla in China starting in 2028 and offer it as a fully electric model as well. FAW Toyota Motor is set to manufacture the vehicle — that China joint venture into which GAC has recently joined.

As the usually well-informed newspaper Nikkei Asia reports, the new Corolla is expected to use a “Multipathway” vehicle architecture starting in 2028, which can support electric, hybrid, gasoline, or other powertrains equally well. According to Nikkei Asia, Toyota intends to use this platform for other vehicles in the future as well, including models from Lexus. Toyota’s luxury brand is reportedly planning to build a next-generation electric SUV in China starting as early as 2027.

The new flexible vehicle platform is intended to enhance flexibility at Toyota. The automaker relies primarily on hybrid and gasoline vehicles in markets such as Japan and the U.S., but is increasingly turning to electric cars in China. In doing so, Toyota is sometimes deviating from its previous practice of first developing vehicles specifically for the Japanese and U.S. markets before adapting them for other regions around the world. As a result, Toyota has already developed its first standalone electric cars for the Chinese market through its two separate joint ventures with FAW and GAC, namely the bZ3C and bZ3X models.

Looking ahead to the next Corolla, Nikkei Asia has learned that the model is set to be produced in China by FAW Toyota — which also supports a China-first approach. A concept car showcasing the next generation of Corolla was first introduced by Toyota at the “Japan Mobility Show” in the fall of 2025. Electrifying the Corolla is of great importance to Toyota: the Toyota Corolla has been recognized across all generations as the world’s best-selling car. Currently, it is available only with a conventional engine or at a low level of electrification as a full hybrid.

Generally, Toyota is under significant pressure in China. According to Nikkei Asia, the manufacturer sold only 118,449 vehicles in August—including those under the Lexus brand—representing a 23 percent decline compared to the previous year. This is due in part to the overall weakening of the passenger car market in China, as well as the growing strength of domestic Chinese brands. In the short term, Toyota is responding by introducing locally produced electric vehicles under the Lexus brand and adding more range-extender models to its lineup. Meanwhile, the automaker is advancing the electrification and connectivity of its vehicles, which is why it is restructuring two of its joint ventures in China.

GAC is acquiring the 50 percent stake in FAW Toyota held by FAW. The deal, which leaked out over two weeks ago, was confirmed by all parties on Friday. Importantly, FAW Toyota is set to continue operating as an independent company—at least for now. The transaction will be funded through the issuance of new A-shares. Meanwhile, FAW is expected to become GAC’s second-largest shareholder.