Gasgoo.com - Beijing-based commercial vehicle manufacturer Foton Motor and Maharashtra Industrial Development Corporation have signed a memorandum of understanding, the Securities Daily reported today. According to the memorandum, Foton and the MIDC will work together to construct Foton's first overseas automobile industrial park and factory in India.
Foton is just one of many Chinese manufacturers attracted by the economic development opportunities India is offering. The agreement between Foton and MIDC aims to bring Indian and Chinese companies closer together.
According to sources from Foton, the manufacturer is on the verge of beginning a three-phase development plan to lead it to the forefront of the commercial vehicle market by 2025. During the first phase of the plan, lasting from 2017 to 2019, Foton will focus on light commercial vehicles to break into the market. It will then began expanding operations to cover other segments as well as work on building its brand image during the second phase from 2020 to 2022. In the final phase, Foton will focus on further developing its operations in the medium and heavy commercial vehicle sectors.
Most Chinese automobile operations overseas are in the form of knockdown kit factories. Foton is one of the first Chinese manufacturers to embark on constructing a industrial park and full automobile factory in a foreign market.
Foton also has plans to construct factories in other markets including Russia, Brazil, Mexico and Indonesia, before eventually breaking into the Japanese, European and American markets.