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Business · 2026-10-17 · Afternoon briefing

Toyota to build next-gen Corolla in China from 2028

Toyota plans to begin producing its next-generation Corolla in China starting in 2028. The model, which was first shown as a concept at last year's Japan Mobility Show, will be manufactured by FAW Toyota Motor, a joint venture with the state-owned China FAW Group.

The decision comes as the Japanese carmaker faces a challenging market. In August, Toyota's sales in China, including its Lexus brand, fell by 23% compared to the same month last year, totalling 118,449 vehicles. Bucking the all-electric trend of many rivals, the new Corolla will be offered with multiple powertrains, including battery-electric, hybrid and traditional gasoline versions—a strategy the firm attributes to diverse global "energy realities".

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