China's Foton reveals SA truck plans

Beijing-based vehicle manufacturer Foton aims to introduce a range of heavy-duty trucks into the South African market.

The company is currently in talks with its South African distributor, Amalgamated Automobile Distributors (AAD), a joint venture between McCarthy and Imperial, to enable this.

There is no timeline available yet for when the first truck tyres may hit the tar.

The 13-year old Beijing-based Foton says it is the world's second largest commercial vehicle manufacturer, nipping at the heels of German stalwart Daimler.

However, Foton Motor Group vice-president Dong Haiyang says Foton has this year managed to surpass Daimler in sales.

Last year Foton sold 409 800 vehicles, up from 63 600 in 1999.

"Our heavy-duty truck-line is one of the brightest pearls for Foton," says Foton medium- and heavy-duty truck division MD John Meng.

"We want to introduce our heavy-duty line-up in South Africa, but we want to put a lot of effort into doing this, we want to set the bar high.

"We are developing a new generation of heavy-duty trucks to be ready in 2011."

He believes South Africa can provide the company with an opportunity to enter the broader African market.

Other vehicles to come to South Africa from the Foton group, planned for a phased roll-out in the local market from 2010, include the MP-X multipurpose vehicle, a range of single and double-cab pick-ups, and a range of light-duty trucks from 1,5 tons through to 5 tons.

"These vehicles are all currently being homologated [accepted as a production model]," says AAD MD Brett Soso.

Foton already supplies a minibus taxi to the local market.

Meng, who spent ten years with Ford in the US, believes China will become the "centre of the global truck market within the next three to five years".

One of the reasons for this shift away from Europe, Japan and the US will be Foton's joint venture with Daimler, signed in January of this year, says Meng.

Foton and Daimler have agreed to set up a 50:50 truck venture worth around $930-million, securing the German company its first foothold in China's truck sector.

The Beijing Foton Daimler Automotive Company is set to start producing diesel engines in 2011 and trucks in 2012, with annual heavy-duty truck sales projected at 100 000 units from 2012 to 2015.

The partners have also agreed to set up joint ventures in Russia, Asia and South America, after the planned engine and truck projects have taken off.

Another compelling reason for the truck market to shift in China's favour, notes Meng, is the fact that growing emerging markets are demanding more trucks, but that  the "whole heavy-duty truck market has changed".

He says most of the well-known truck brands, such as MAN, Scania and Daimler, have "pushed into the premium truck segment, leaving the global medium and low-end of the market empty, and ready for Chinese brands.

"If we provide a product of acceptable quality, with good after-sales service, we can do well. We are confident that we will be able to fill this gap and become number one."

Haiyang notes that vehicle sales in China – cars and trucks included – are likely to increase by 7,6% this year compared with 2008, but "that, in reality, commercial vehicles will increase less than this. The world is short of money. Maybe next year the global market will stabilise – I'm hopeful."

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