According to a Dow Jones report, Tianjin Automotive Xiali Co. has received government approval for the transfer of a controlling stake in Tianjin to FAW from Tianjin’s previous parent.

First Automotive Works, one of China’s top three carmakers has therefore taken a controlling 50.98% stake in Tianjin Automotive Xiali Co. The consolidation move is being interpreted as a reaction to more competitive market conditions and China’s entry to the WTO.

Go deeper with GlobalData

Go deeper with GlobalData

The gold standard of business intelligence.

Find out more

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

The Chinese government has said in the past that it wants to create two or three globally competitive car producers to strengthen a fragmented industry.

Toyota has a venture with Tianjin Automotive Xiali with which it plans to make 30,000 small cars annually in China, basing the first Chinese-built Toyota model, the 1.5-liter T-1 compact on sale in October, on the Toyota Vitz/Yaris/Echo compact.

Just Auto Excellence Awards - The Benefits of Entering

Gain the recognition you deserve! The Just Auto Excellence Awards celebrate innovation, leadership, and impact. By entering, you showcase your achievements, elevate your industry profile, and position yourself among top leaders driving automotive industry advancements. Don’t miss your chance to stand out—submit your entry today!

Nominate Now