Chinese firm to invest $380m in truck plant in Maharashtra
BEIJING: In a rare case of a Chinese company investing directly in India instead of relying on exports, a leading truck manufacturer has inked an investment deal with the Maharashtra government.
Beiqi Foton Motor, one of China's leading manufacturers of commercial vehicles, plans to put in $380 million on a assembling plant in Maharashtra, State media said.
The company has also promised to mostly source parts and components from local producers instead of importing them from China, the State media indicated. The company termed it as an important move in its globalization drive.
A report from Mumbai suggested the proposed plant will produce 100,000 trucks a year.
The plant will have the full range of production capabilities to churn out both heavy and light trucks to meet different kinds of demand in the Indian market, the official Xinhua news agency quoted the company's public relations chief, Wang Shuguang, as saying.
The location of the plant has not been finalized and could be in Mumbai or Pune with several options available, Wang said. The Beijing based Beiqi Foton Motor will also establish a separate company to handle sales.
The company sold over 600,000 vehicles in 2009, which was highest by any company in the world, Xinhua said. It also has vehicle assembling plants in Indonesia, Thailand, Mexico and South Africa.
Beiqi Foton Motor made a net profit of $168.7 million in the first half of this year, rising at a stunning rate of 153% over the level achieved in the same period last year. RAKESH PRASADPGDM 2ND (2010-12)
Beiqi Foton Motor, one of China's leading manufacturers of commercial vehicles, plans to put in $380 million on a assembling plant in Maharashtra, State media said.
The company has also promised to mostly source parts and components from local producers instead of importing them from China, the State media indicated. The company termed it as an important move in its globalization drive.
A report from Mumbai suggested the proposed plant will produce 100,000 trucks a year.
The plant will have the full range of production capabilities to churn out both heavy and light trucks to meet different kinds of demand in the Indian market, the official Xinhua news agency quoted the company's public relations chief, Wang Shuguang, as saying.
The location of the plant has not been finalized and could be in Mumbai or Pune with several options available, Wang said. The Beijing based Beiqi Foton Motor will also establish a separate company to handle sales.
The company sold over 600,000 vehicles in 2009, which was highest by any company in the world, Xinhua said. It also has vehicle assembling plants in Indonesia, Thailand, Mexico and South Africa.
Beiqi Foton Motor made a net profit of $168.7 million in the first half of this year, rising at a stunning rate of 153% over the level achieved in the same period last year.
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