BEIJING – Beiqi-Foton Motor Co., Ltd. wants to sell 4 million vehicles globally in 2020, including 2.57 million units in China with the rest overseas, according to plans announced at the company’s 2011 Annual Commercial Conference held here on January 9. That will more than quadruple the nearly 900,000 vehicles it plans to sell this year.
Ambitious goals for the next decade
Last year, Beiqi-Foton sold more than 680,000 vehicles, continuing its dominance in commercial vehicles in the country. After 14 years of rapid development since becoming China’s largest farm vehicle manufacturer in 1996, the company has cumulatively sold some 4.5 million vehicles. It now ranks fifth in heavy-duty truck sales and has remained as the No. 1 commercial vehicle manufacturer in the country and globally for two consecutive years.
This year, the company has set a sales target of 892,000 vehicles, which would be up 27.4 percent over 2010. The company will debut an upgraded H4 heavy-duty truck with Mercedes-Benz platform technology and powertrain through its joint venture with Daimler Trucks. A high-end pickup truck P201, which will be put into production at the company’s Miyun plant in Beijing, will also be launched.
Wang Jinyu, president of Beiqi-Foton, revealed the company’s two-stage strategic plan at the conference. First, the plan targets annual vehicle sales of 1.88 million units in 2015, including 1.39 million current vehicle models and 490,000 new ones. In the longer term, Wang predicts that China’s total automobile sales would hit 35 million in 2020, when Beiqi-Foton would sell the aforementioned 4 million vehicles, with sales revenues exceeding ¥400 billion ($60.6 billion).
To realize its plan, Beiqi-Foton will invest ¥20 billion to set up nine production facilities, including the No. 2 Auman heavy-duty truck plant in Huairou, northeast Beijing, which is part of the joint venture production facility between Beiqi-Foton and Daimler Trucks.
With an investment of ¥2.6 billion, the new Auman project has a land area of 495,000 square meters including a building space of 192,000 square meters. The plant will mainly produce the Auman H4 and the current high-end CTX and ETX heavy-duty trucks with annual production capacity of 80,000-100,000 units, which the company touts as the biggest heavy-duty truck production base in the world.
Overseas expansion, passenger cars and new energy vehicles the focus of the next decade
According to Wang, Beiqi-Foton will expand into the passenger car market in 2014, with the launch of a mid- to high-end passenger car model. A series of SUV and MPV models will be launched in the second step. The Miyun plant will undertake the task of passenger vehicle production. The company has been making passenger vehicles including pickup-based SUVs and the Midi MPV for a few years now but with insignificant volume.
For its overseas business, Beiqi-Foton plans to build a 100,000-unit production plant each in Russia, India, Brazil, Mexico and Indonesia, and break into the North America, EU and Japan markets in five years. Overseas sales target is 500,000 units by 2015 and 1.5 million units in 2020.
On the new energy vehicle front, Beiqi-Foton has sold more than 3,000 vehicles up to now, mostly hybrid and pure electric models covering buses for public transportation, environmental sanitation vehicles and taxi fleets. Sales of new energy vehicles are set to take up to 15 percent of total vehicle sales in 2015.