Beiqi Foton expands its presence in overseas markets through a joint venture



Daimler and Beiqi Foton Motor will form a joint venture and the two companies will launch unprecedented cross-border cooperation in commercial trucks. It is reported that in addition to the Chinese market, the two parties will develop a new assembly plant to produce commercial trucks in a number of emerging markets outside China.

In September, the Chinese government approved the application of Futian and Daimler to build a joint venture factory in China. The two parties will invest 6.4 billion yuan to produce 100,000 medium-sized and heavy-duty trucks of the Futian Auman brand. These cars will meet Euro 5 emission standards and will be sold at both domestic and overseas markets.

On April 29 this year, Beiqi Foton Motor Co., Ltd. signed a contract with the Indian government of Maharashtra in Mumbai, India, to build a truck factory with a capacity of 100,000 vehicles, which is expected to be completed and put into use in 2013. Beiqi President Xu Heyi said at the Global Automotive Forum in Chengdu last week: "Beiqi Foton plans to invest in production facilities in Russia, Brazil, India, Mexico and Southeast Asia.

According to industry insiders, Futian is overseas. Fukuda must first understand the basic social, political, economic, and cultural conditions of the local community. Foreign companies’ trade unions have a greater influence on companies. The consumption habits of local users are not the same as those of Chinese users. Fukuda should first understand the basic situation and then decide whether the low-cost strategy can be directly applied to overseas markets. China's auto companies open up most of the international market to pioneering low-end products. Since they are entering foreign markets, they must compete with foreign domestic truck companies. In particular, most trucks in the Indian market are low-end products. Therefore, it is advisable for China's auto companies to adopt a development route that is significantly different from their counterparts in India.

Controlling costs is a means. Implementing a differentiated development strategy is the best policy for Fukuda. If we directly face up with overseas local companies, we don't have much advantage because foreign companies are after all. Only by truly integrating into the local automobile industry in the Gulf can we achieve lasting development.

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