Foton Motor announces 2020 vision: to form five pillar industries

Shanghai December 31 (Gasgoo.com) Beiqi Foton Motor Co Ltd (600166, SH), the world's biggest commercial vehicle maker by sales last year, announced recently its 2020 vision: to form five pillar industries, including new energy vehicles, new energy, heavy machinery, the Internet of things and financial services, auto.sina.com reported Friday.

Currently the Internet of things industry has been basically formed, and we will enter the implementation phase of this industry in the first half of next year; while plans for the formation of the financial services industry, not just limited to the auto finance filed, is still under development, said Zhao Jingguang, deputy Party secretary of Foton Motor.

By 2020, Foton Motor, a subsidiary of Beijing Automobile Group Co Ltd, aims to sell four million vehicles, generating more than 400 billion yuan ($60.6 billion) in sales revenue and 20 billion yuan ($3.03 billion) in profit. These figures are 660%, 900% and 1200% higher than in 2009, respectively. And over 25% of those sales figures will be obtained from outside China.

In order to meet the 2020 sales goal, the company plans to launch a number of major projects, consisting of a 2.6 billion yuan project to boost annual production capacity to 100,000 heavy-duty trucks, an auto project that will cost 560 million yuan and will be located in Weifang, Shandong Province, as well as a 3.2 billion yuan project in Changsha, Hunan Province, with a designed production capacity of 200,000 heavy- or light-duty trucks per year, according to an earlier report from China Knowledge.

It may be a bit late for Foton Motor to branch out into the Internet of things and financial services industries, so more commitment will be needed to meet the new opportunities and challenges, industry analysts said.