Automaker to cover losses of rising inventories with a $199m subsidy
FAW-Toyota has agreed to pay out 1.24bn yuan ($198.7m) in subsidies to dealers by the end of June this year, according to the China Automobile Dealers Association, with the first installment of 890m ($142m) due by the end of January.
The Sino-Japanese joint venture drew criticism last year as its dealers suffered from weaker sales and intense financial pressure, although this has affected both domestic and foreign automakers across the board.
Despite slow sales in China, Toyota's global operating income increased by $2.2bn in the third quarter of last year, according to the company's financial statements.
Other automakers have also agreed to pay subsidies to struggling dealers. In January, BMW announced it would pay $820m in subsidies - equivalent to around €1500 ($1700) per car - to its dealers in the form of rebates for tough 2014 sales.