FAW Group will expand cooperation with Guangzhou Automobile Industry Group under a strategic framework agreement aimed at improving operational quality and efficiency. The agreement follows GAC’s announcement that FAW is set to become its second-largest shareholder through GAC’s acquisition of a 50% stake in FAW Toyota. The companies are expected to pursue joint technology development and resource sharing, while the China Association of Automobile Manufacturers urges policy support to address regulatory barriers to consolidation. China’s roadmap through 2030 calls for a stronger smart electric vehicle industry, less overinvestment and the elimination of inefficient capacity.