WheelsUnplugged.com - There were reports of the impending entrance of the Chinese automobile players in the second fastest growing market in Asia as other global makers are already here. Now it has been reported that China's largest commercial vehicle maker Beiqi Foton plans to invest Rs 1,676 crore for a one-lakh units per annum plant in India and plans to launch its first product in the lucrative domestic market by 2013.
According to a report in Business Standard, the manufacturing facility, the company's first outside mainland China, will be located in Western Maharashtra and it has already zeroed in on three potential sites for the plant. The report quoted the company's executive vice-president for India operations R Shankar as saying "India is a big opportunity and we plan to start rolling- out vehicles by 2013 from the plant." Foton and the Maharashtra Government have inked an MoU to set up the facility. The USD 400-million investments by Foton, which produced seven lakh vehicles last year, will be the highest foreign direct investment by a Chinese company in India and the company is exploring options to sell light, medium and heavy trucks in India, Shankar said.
It was mentioned in the report that the Beijing-based company exports to over 100 countries across the world and operates six manufacturing plants in China, apart from running KD (knock-down) operations in Russia, Iran, Pakistan, Vietnam, Indonesia and Kenya where vehicles are assembled. The company has snapped up Rakesh Kalra, who will head the operations in India as the managing director, from rival Mahindra Navistar.
