China’s leading truck manufacturer Beiqi Foton Motor has announced that it has signed a memorandum of understanding (MoU) with the Maharashtra Government to set up a truck manufacturing facility in India. Beiqi Foton intends to invest Rs. 1,676 crores in this venture.
The signing of the MoU and the investment to be made in India would serve as a key step for the truck maker to implement its strategies and is an important move for its globalization drive, said a company statement.
The plant will be producing heavy and light trucks according to the local market demand. The parts and components will be mainly sourced from local producers.
“The Indian commercial vehicle sector is the world’s fourth largest and is expected to grow rapidly. Foton is the first amongst the Chinese auto makers to invest and set up facilities in India,” the Beiqi Foton Motor President, Mr. Jinyu Wang, said. “With an investment outlay of Rs. 1,676 crores for Indian operations, Beiqi Foton aims to create products suited to meet the needs of Indian environment and conditions.”
With these plans, Foton looks at creating tremendous business opportunities for local manufacturers. The process will also generate employment and growth opportunities for the region, more so since the core vision of the company is localisation.
