Foton is putting all its eggs in a South Africa-shaped basket and has confirmed that it will start manufacturing its new Tunland G7 bakkie on local soil in the future for domestic and export markets.
Foton sees the country as a “lighthouse market” that will allow it to gain access to the rest of the African continent, and it has therefore decided that it will establish “five major centres” within our borders over the next eight years.
These include:
- R&D centre
- Operation centre
- Manufacturing centre
- Service training centre
- Accessory distribution centre
The Chinese automaker, owned by BAIC, launched an extensive portfolio of commercial vehicles in South Africa in June, which are being distributed through a partnership with Combined Motor Holdings (CMH).
It boasts a dealer network of over 40 locations across the nation and is backed by Mandarin Parts Distributors as its official parts supplier.
Big ambitions
Foton is re-entering the South African market in three phases, the first running from 2024 to 2026, the second from 2027 to 2029, and the third from 2030 onwards.
During this time it will roll out a comprehensive line-up of commercial vehicles covering the internal combustion and battery-electric segments, including bakkies, vans, and mini, lightweight, medium, and heavy trucks.
During the second phase of its foray into the country, Foton intends to start assembling vehicles at the BAIC factory in the Coega Special Economic Zone near Gqeberha in the Eastern Cape.
BAIC in partnership with the South African Industrial Development Corporation collectively invested R11 billion into the manufacturing facility, which broke ground in 2016 and started producing its first vehicles in March 2024 in the form of the BAIC Beijing X55.
The 540,000m² plant has a capacity to churn out 50,000 units per annum at the moment, with plans in place to double this to 100,000 units over the coming years to support Foton and BAIC’s export ambitions.
Foton stated that it wants to become a leading brand in the light commercial vehicle space in South Africa, projecting a 13-fold increase in sales between 2024 and 2032.
This year, its target is to achieve 3,000 sales in the country, by 2028 it wants to do 18,000, and by 2032 it aims to hit 40,000.
For Africa as a whole, Foton sees even more potential.
In the 2023/2024 financial year it anticipates an aggregate 20,000 sales across the continent, increasing to 40,000 by 2026, then 60,000 by 2028, 80,000 by 2029, and 100,000 by 2030.
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