A possible Toyota JV tie-up signals pressure on China's old auto model.

GAC said it planned to acquire part of FAW Group's stake in an unnamed auto joint venture with an overseas-listed company. Chinese state media identified the venture as FAW Toyota, Reuters reported on September 15; Toyota, GAC and FAW did not confirm that identification to Reuters.

A closer link between FAW Toyota and GAC Toyota could reduce overlapping sales, dealer and production structures. The possible transaction arrives as overcapacity, price competition and the rapid shift toward local electric-vehicle brands squeeze foreign manufacturers in China.