Thai conglomerate, Charoen Pokphand (CP) Group and China’s Foton Motor Group have created a joint venture (JV) in Thailand, investing THB 500 million (USD 15.87 million) to manufacture pickups, big trucks, buses and passenger cars.
Foton’s will support CP with activities like commercial sales, automotive Energy products and onboard communication systems, while CP will be responsible for finance and customer relations. Both firms will contribute to additional investment in the production of a range of Foton models, including Aumark, Auman and AUV buses for the ASEAN region.
This initiative is the second joint venture between CP and a Chinese company. The first happened in 2012 when CP set up SAIC Motor-CP with Shanghai’s SAIC to produce and distribute MG cars.
Foton has tried to enter the Thai market for several years. The company named United Motors Co as its authorized distributor and assembler before switching its local administration to Bangchan General Assembly Co (BGAC) to produce pickups and passenger cars, while United Motors produced big trucks. This new JV means the end for Foton’s relationship with both companies.
Amongst fierce competition from Japanese brands in pickups and trucks and limited sales volume, Foton is reaching for a top three spot in the Thai market, counting on Thailand’s positive Environment for the automotive sector.
(Sources: The Bangkok Post; The Nation)