FOTON, COSCO Shipping Launch Joint Venture to Strengthen Global Supply Chain

Foton Motor and COSCO Shipping Specialized Carriers have officially launched their joint venture, Guangzhou Yuanfu Automotive Supply Chain Co., Ltd., marking a new step in integrating automotive manufacturing with global shipping resources.

On the same day, a roll-on/roll-off (ro-ro) vessel bearing the logos of both companies was delivered and entered service. At the port, 600 Foton pickup trucks were lined up for shipment. The vehicles will be transported to South America aboard the newly delivered vessel Kaiyuan Kou, representing the first large-scale export order supported by the joint venture’s logistics system.

The simultaneous launch of the joint venture and deployment of dedicated shipping capacity highlights a rapid transition from strategic planning to execution. It also underscores Foton Motor’s shift from traditional product exports toward building a fully integrated global supply chain system, as part of its broader internationalization strategy.

Addressing Key Challenges in Global Expansion

Foton Motor has ranked as China’s top exporter of commercial vehicles for 15 consecutive years. The company’s cumulative overseas sales have exceeded 1.25 million units, with its sales and service network spanning more than 140 countries and regions.

In 2025, Foton reported overseas sales of 164,500 units, reflecting continued global expansion. Its manufacturing plant in Brazil has entered operation, supporting localized production in South America. In Thailand, its facility is advancing a “local production + regional distribution” model across Southeast Asia, where market penetration continues to improve. Meanwhile, its South African plant has begun CKD mass production of AMT heavy-duty trucks and pickup models, further strengthening its local presence in Africa.

New energy vehicles (NEVs) have also emerged as a key growth driver. In 2025, Foton sold more than 101,200 NEVs, representing a year-on-year increase of 87.21%, significantly outperforming the industry average. Overseas shipments of NEVs are also rising rapidly.

However, growing export volumes have exposed structural challenges. Volatility in global trade conditions and geopolitical uncertainties have made traditional spot-based shipping arrangements less reliable, leading to fluctuating freight rates, limited vessel space, and inconsistent delivery timelines. These issues have become common constraints for Chinese commercial vehicle manufacturers expanding overseas.

Against this backdrop, greater control over supply chains has become essential for sustainable global growth.

Building a More Resilient Supply Chain System

The establishment of Guangzhou Yuanfu Automotive Supply Chain reflects a strategic move by Foton Motor to address these challenges. Rather than relying solely on outsourced logistics, the joint venture forms a long-term partnership that integrates shipping and automotive resources.

COSCO Shipping Specialized Carriers contributes its global shipping network and end-to-end logistics capabilities, while Foton provides stable export volumes and an established international market presence. The partnership is designed to create synergies and improve overall efficiency.

Through this platform, Foton will gain access to customized maritime transport solutions tailored to regional market needs, covering complete vehicles, KD kits, spare parts, and general cargo.

The move is expected to deliver benefits across three key areas:

Delivery reliability: Reduced exposure to fluctuations in global shipping markets, ensuring more stable and predictable delivery schedules;

Cost efficiency: Optimized logistics expenses through long-term cooperation, enhancing price competitiveness in overseas markets;

Strategic flexibility: Improved global planning supported by COSCO’s extensive shipping network and expanding LNG-powered ro-ro fleet, particularly in Belt and Road markets, Latin America, and Africa.

The shipment of 600 pickup trucks serves as an early demonstration of the system in operation, highlighting both the demand for Foton products in South America and the practical rollout of the joint venture’s logistics capabilities.

Industry Collaboration and Future Outlook

Speaking at the launch ceremony, Zhu Youfu, Vice President of Foton Motor, said the joint venture reflects the company’s evolving global business scale and represents an upgrade of its international strategy.

Zhang Chi, Deputy General Manager of COSCO Shipping Specialized Carriers, noted that the company remains committed to supporting Chinese enterprises in their global expansion. He added that the partnership sets a new benchmark for collaboration between the automotive and shipping sectors, contributing to a more stable and resilient export supply chain.

Expanding Global Reach

Looking ahead, Foton Motor plans to leverage the joint venture as a key platform to strengthen its global operations. By building a more controlled and efficient ocean shipping system, the company aims to enhance connectivity with international markets and improve service for global customers.

The “automaker + shipping” model not only supports Foton’s own growth but also provides a scalable framework for other Chinese automotive companies expanding overseas. It is expected to contribute to greater stability and resilience across the broader automotive supply chain.

As it advances its internationalization strategy, Foton Motor aims to further strengthen its position in the global commercial vehicle market through improved capabilities, more integrated systems, and sustained operational efficiency.

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