Gasgoo.com (Shanghai April 23) - Beiqi Foton Motor, one of China's largest truck manufacturers, officially announced yesterday that it was establishing a sales company in India, Shanghai Securities News reported yesterday.
Foton, which recently began construction on a production site in Nairobi, Kenya, has placed great importance on globalization. Foton has invested 99 million rupies ($2.22m) in the new company, of which it will hold a 99 percent controlling share. 10,000 stocks at 10 rupies ($0.224) will be offered to the public.
In other news, Foton is also to invest 255 million yuan ($39.33m) to establish a casting company. Foton is hoping that by opening its own casting company it can cut on engine production costs, thereby increasing profit margins on its vehicles sales. According to predictions, Foton's profits should increase around 15 percent after the new company's first phase of production is complete.