Upcoming Toyota Corolla to come from China – including all-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. FAW Toyota Motor is expected to manufacture the model - the China-based joint venture that also involves GAC.
The next-generation Corolla looks set to adopt a “Multipathway” vehicle architecture from 2028 – equally supporting electric, hybrid, petrol, and other powertrains. According to Nikkei Asia, Toyota plans to extend this platform to other vehicles in the future, including Lexus models; the luxury brand is reportedly planning to build a next-generation battery-electric SUV in China starting from 2027.
The new flexible vehicle platform is designed to give Toyota greater agility. While the automaker primarily focuses on hybrid and petrol vehicles in markets like Japan and the USA, it is increasingly prioritising battery-electric vehicles in China. This shift marks a partial departure from Toyota’s traditional approach of developing vehicles first for the Japanese and US markets before adapting them for other regions. In China, Toyota has already developed its first independent electric vehicles for the local market through its two joint ventures with FAW and GAC, namely the bZ3C and bZ3X models.
Regarding the next Corolla, Nikkei Asia has learned that the model will be manufactured by FAW Toyota in China – another sign of a China-first strategy. Toyota first previewed the next Corolla generation with a concept study at the Japan Mobility Show in autumn 2025. The electrification of the Corolla is of great significance to Toyota: the Corolla is considered the best-selling car globally across all generations. Currently, it is only available with a conventional engine or as a full hybrid.
Toyota is facing significant pressure in China. According to Nikkei Asia, the manufacturer sold only 118,449 vehicles in August – including Lexus -representing a 23 per cent decline compared to the same month the previous year. This drop is partly due to the overall weakening passenger car market in China, as well as the rise of domestic brands. In the short term, Toyota is responding by introducing locally produced battery-electric vehicles under the Lexus brand, along with more range-extender vehicles in its lineup. At the same time, the automaker is advancing the electrification and connectivity of its models, which is why, among other things, its two China joint ventures are being restructured.
In this context, GAC is acquiring FAW’s 50 per cent stake in FAW Toyota. The deal, which leaked about two weeks ago, was officially confirmed by all parties on Friday. Importantly, FAW Toyota is to continue operating as an independent company – for now, at least. The transaction is to be financed through the issuance of new A-shares. At the same time, FAW is set to become the second-largest shareholder in GAC.