Chen Zhiwei, Brand and Network Director of Foton International, highlights the surprising growth that the brand has experienced in Mexico. According to data from the National Institute of Statistics and Geography (Inegi), Foton’s retail sales during the first eight months of this year reached 753 units, an increase of 96.1%. Wholesale sales, for their part, totaled 1,155 units, marking a significant increase of 160.1%.
This rise in the Mexican market has led Foton to seriously consider the possibility of building a plant in the country. Mexico, with its strategic position and growing market, is presented as an ideal starting point for Foton’s expansion in Latin America.
“We are exploring the possibility of invest in a plant in Mexico. Mexico is a vast and promising market, and we believe it is essential to have a stronger presence here,” said Chen Zhiwei. “Our goal would be to not only serve local demand, but also export our products to other Latin American countries. We are currently carrying out an in-depth feasibility study, and could make an announcement on this within the next year.”
Currently, the company already operates a final assembly plant in Lagos de Moreno, Jalisco. This installation is based on the CKD (Completely Knocked Down) system and refers to the shipment of a vehicle in individual parts or functional subassemblies that are finished assembled on a line. The plant has the capacity to assemble up to 40 diesel vehicles per day. However, its main focus is to satisfy the demand of the Mexican market. Therefore, one of the objectives of the next industrial complex would be to expand its production and also supply other countries in the region.
During the period from January to August, the company assembled a total of 1,029 units in its complex located in Jalisco. Altogether, 1,908 units were sold throughout the country during that same period.
In its country of origin, China, Foton operates a total of 23 plants, including assembly plants and component factories. During the first half of 2023, 600,000 Foton brand vehicles were produced in China, of which only 60,000 were destined for foreign markets, while the majority remained to supply the domestic market.
Two years earlier, in 2021, Foton became the first Chinese commercial vehicle company to achieve production and marketing of its 10 millionth vehicle. The following year, the company’s brand value reached 191.516 million yuan (CNY), establishing itself as the most valuable company in the commercial vehicle sector in its home country for 18 consecutive years.
In markets such as Colombia, Chile, Vietnam and India, Foton has managed to position itself as the leading brand in commercial vehicle sales. In Mexico, the company seeks to achieve a similar position, following the same principles that have worked in other regions. The brand is marketed in Mexico through LDR Solutions, a Mexican company.
“We will follow the steps taken in other markets. To grow as a brand, we need to place emphasis on distributors and after-sales service, two points in which we already have growth plans,” says Miguel Ángel Velasco, CEO of LDR Solutions.
Currently, Foton has a distribution network made up of 18 partners in Mexico, a figure that it intends to increase to 29 at the beginning of next year, which would represent 80% coverage throughout the national territory.
As for service workshops, the company started with three and, by 2022, managed to expand to a total of 76. In addition, it has plans to increase this number to 120 by 2030.
In the financial field, Foton has established collaborations with companies such as Tip, Banregio, Inventa, Actinver and Grupo Salufi. In addition, it has added new allies such as BBVA, Banamex, Banorte and Nacional Financiera.
“We are planning to invest more in Mexico. Currently, we are in the research and evaluation phase of the feasibility of investing more capital in the Mexican market. This includes considering the construction of new plants and the expansion of our operations in the financial sector,” concludes Chen Zhiwei.