Analysis-Toyota revamp hints of wider industry shake-up in China

Toyota's potential tie-up between Guangzhou Automobile Group (GAC) and FAW Group could signal a broader industry shake-up in China's auto market, as the long-standing foreign joint-venture model faces new challenges. With China's auto market on the verge of consolidation due to overcapacity and intense competition, automakers are being forced to become more efficient.

Analysts predict a wave of industry restructuring over the next two to three years, with foreign automakers like Toyota and BYD losing ground to local rivals such as BYD, Geely, and Chery.

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