Chinese commercial vehicle maker Beiqi Foton (600166.SH) is expected to start local assembly in Russia by the end of 2010. It plans to build a 100,000-unit auto base in Russia by 2012.
The automaker has signed a cooperation memorandum with the Moscow municipal government to establish a European auto business department under Beiqi Foton, which will be in charge of Foton's auto sales, R&D and investment in Europe.
The expansion in Russia is a part of Beiqi Foton's 2011-2015 five-year plan. The automaker plans to build factories in five developing countries, including Russia, Brazil, Mexico, India and Thailand by 2015.
It also expects to develop business in Europe, North America and Japan, while boosting car sales in China, according to Wang Jinyu, general manager of Beiqi Foton.
Wang said that the company entered into the Russian market in 2005 and had exported more than 10,000 commercial vehicles to the market by the end of 2008.
