As 2026 progresses into its latter half, GAC Toyota proudly announces two significant milestones: on July 2, it celebrates the production of its 10 millionth mass-produced vehicle, joining the elite club of '10-million-unit manufacturers.' Concurrently, it unveils its first-half sales figures: 60,359 units sold in June, culminating in a total of 341,107 units for the first six months. Notably, GAC Toyota has sustained positive growth for three consecutive months, securing the top spot in sales among joint venture brands.

GAC Toyota achieved this 10-million-vehicle milestone in just 22 years, maintaining its leadership in the joint venture sector despite an overall contraction in the automotive market in 2026. Data from the China Passenger Car Association reveals a 19% year-on-year decline in nationwide passenger car retail sales from January to May 2026. Amidst this industry-wide downturn, GAC Toyota stands out as one of the few automakers to maintain stability.

From a product portfolio perspective, GAC Toyota's sales are not reliant on low-end, volume-driven models. In the first half of the year, its three flagship models—Camry, Highlander, and Sienna—continued to excel, with global models collectively selling 288,905 units. Among these, intelligent electric hybrid models accounted for 54% of sales. Sienna maintained its leading position in the MPV market for five consecutive months, Camry led the joint venture mid-to-high-end sedan segment for three months straight, and the Highlander and Wildlander families also remained at the forefront.

Of the 10 million vehicles produced by GAC Toyota, high-value flagship models and intelligent electric hybrid models constitute 50%, indicating that nearly half of its sales come from a product lineup with strong brand premium capabilities. This strategy fundamentally differs from the 'low-price, high-volume' model. At a time when price wars are yielding diminishing returns, the ability to boost sales through price cuts is weakening, instead increasing consumer hesitation. GAC Toyota has avoided the vicious cycle of 'trading price for volume,' leveraging hybrid technology to meet the upgrade and replacement needs of fuel vehicle users and using its product mix as a shield against market fluctuations.

Performance in the new energy sector is equally impressive. The bZ brand accumulated 52,202 units in first-half sales, with the bZ3X securing the top spot in joint venture pure electric vehicle sales for 10 consecutive months and the bZ7 consistently ranking among the top three mid-to-large pure electric sedans since its launch. From a single model breakthrough to a diversified product matrix, GAC Toyota has transitioned from 'testing the waters' to 'scaling up' in the pure electric vehicle segment.

The 10 millionth vehicle to roll off the line was a bZ7, rather than a traditional model like Camry or Highlander, sending a clear message: 10 million units are not a monument to GAC Toyota's fuel era but a new starting point for its intelligent and electric transformation. In 2022, GAC Toyota fully initiated local R&D for new energy models, implementing the Regional Chief Engineer (RCE) system to localize product definition rights. In 2024, it launched the 'Fusion 2030' strategy, aiming for 'comprehensive self-reliance' and initiating system-wide structural reforms.

2026 marks a pivotal year in the 'transformation battle.' In the first half, GAC Toyota delivered a commendable performance. Firstly, the fruits of its R&D system reform are evident: through the RCE system, the Chinese team led the entire process from product planning to development and validation, deeply integrating Toyota's manufacturing standards with the intelligent demands of the Chinese market. The bZ series is a testament to this system: the 2026 bZ3X features Hesai Technology's LiDAR, Momenta's intelligent driving algorithms, and iFLYTEK's large-model voice system, while the bZ7 is equipped with Huawei's DriveONE electric drive system and debuts with HarmonyOS Cockpit 5.0.

Notably, Chinese brand suppliers account for 65% of the bZ3X's components, setting a new record for localization rates among Japanese brands in China. This model of combining 'global standards + Chinese technology' addresses a long-standing challenge in joint venture electrification: global models' intelligent experiences often fall short of Chinese users' expectations, while local development raises concerns about quality control. GAC Toyota integrates the capabilities of Chinese tech companies like Huawei, Momenta, and iFLYTEK into Toyota's stringent quality control system for secondary verification and tuning, leveraging China's mature local electric and intelligent supply chains to achieve rapid product iteration.

While betting on electrification, GAC Toyota has not neglected its fuel vehicle base. Through technological innovation, it continues to narrow the intelligence gap between fuel and electric vehicles, achieving true 'parity between fuel and electric.' Take the all-new Wildlander as an example: as the first mass-produced fuel vehicle equipped with a new electronic and electrical architecture, it integrates computing power through a high-performance domain controller, ensures high-speed communication via gigabit Ethernet, and is powered by a Qualcomm 8155P chip, laying the hardware foundation for intelligence and enabling features like over-the-air updates, TSS 4.0 intelligent driving system, and intelligent cockpit.

Beyond product innovations, GAC Toyota keeps pace with the times in user services, introducing a user service policy for the bZ series that holds the manufacturer accountable for battery spontaneous combustion, intelligent parking accidents, and battery degradation—addressing the three major pain points of electric vehicle users and building trust through 'bottom-line protection.'

Today, GAC Toyota has completed a parallel layout of five technological routes—fuel, hybrid, plug-in hybrid, pure electric, and hydrogen electric—becoming one of the few domestic joint venture automakers to cover all energy segments. It also offers a full range of models, including sedans, SUVs, and MPVs, precisely meeting the travel needs of diverse consumer groups and achieving all-round development without shortcomings.

Achieving 10 million units in 22 years may not be the fastest pace in today's Chinese auto market, but it carries significant weight. GAC Toyota's milestone is not a temporary boom driven by a single blockbuster model but the result of a layered, progressive product matrix and long-term accumulation of quality and reputation.

At this new milestone of 10 million units, GAC Toyota faces both opportunities and challenges. Its well-rounded technological route layout enables it to precisely meet the purchasing needs of different users, offering stronger resilience against industry price wars. Its differentiated approach of combining 'global Toyota quality + Chinese local intelligent technology' breaks the passive situation of joint venture brands in the pure electric market, with ample growth potential in new energy. Backed by Toyota's long-standing reputation for high residual value, its fuel and hybrid bases remain solid, laying a strong user foundation for sustained growth.

Meanwhile, structural contraction in automotive market demand, coupled with a halving of new energy vehicle purchase tax subsidies, has led to a significant release of demand by the end of 2025, creating a substantial demand gap. AlixPartners predicts a 10% decline in China's light vehicle sales for the full year of 2026, with the overall market pie shrinking. Simultaneously, domestic brands continue to ramp up efforts in the mainstream pure electric segment priced between 100,000 and 250,000 RMB. While the bZ series leads among joint ventures, breaking through the market barriers of leading domestic brands and further expanding its pure electric market share will require sustained strengthening of product differentiation advantages.

Looking back from the midpoint of 2026, the survival logic for joint venture automakers has fundamentally changed. The era of earning easy money through brand premiums is over. To survive, future joint venture brands must prove three things: first, whether they can stabilize their fuel vehicle base; second, whether they can break into the mainstream in new energy; and third, whether their localized R&D can keep pace with the Chinese market. By this standard, GAC Toyota has delivered a qualified mid-term report card, and its development momentum is set to continue in the second half of the year with the launch of more new products.