Foton Motor establishes NEV joint venture with state-owned Beijing Public Transport
China's CV manufacturer Foton Motor and Beijing Public Transport recently founded a NEV joint venture with the former grasping the most of shares.
The joint venture, dubbed Beijing Foton AUV New Energy Vehicle Co.,Ltd, was registered on Feb. 21, involving a registered capital of RMB2,236,520,000, according to the Chinese company information search platform Qixinbao. Of which, RMB2,036,520,000 will be contributed by Foton Motor, equaling to 91.06% of share capital in the newly-built company. The remaining RMB200 million are subscribed in cash by Beijing Public Transport, which plans to pay off the money in three tranches within 12 months.
The record from Qixinbao shows that the main business scope of the new joint venture extends to cover the manufacture of new energy vehicles and automotive engines, the sale of automobiles and auto parts, and the technical development pertaining to traditional vehicles, new energy vehicle, auto components, bus chassis and IT.
Beijing Public Transport is a large-sized public transportation service provider wholly owned by Beijing municipal government. Foton Motor announced in early Jan. the transaction about building a NEV joint venture with the government-owned company.
The CV maker said then the cooperation will draw new capital which is expected to help the company improve its financial situation. Besides, the core competence of its AUV bus & coach unit would be enhanced by virtue of an updated business management model.
Foton Motor is ambitious to sell 200,000 new energy commercial vehicles (NECV) by 2025, a part of its all-new NEV strategy launched in last November.
Aiming to be China's No.1 NECV brand, Foton will strive to garner 30% share of the country's total NECV sales by 2025 with an expected sales revenue of RMB15 billion, according to the newly-launched strategy.
Under the new strategy, Foton Motor is ready to pump RMB6 billion into R&D works and provide its industrial chain and market service system with RMB12 billion capital infusion, covering plants, service, talent pool and dealerships.
The goal is to be achieved by simultaneously developing BEVs, PHEVs and FCVs. Of those, all-electric light-duty and mini-sized commercial vehicles will be primarily used in urban delivery and terminal logistics businesses in various practical scenarios. The fuel cell-powered heavy-duty trucks and buses will be applied in demonstration operation to meet specific demands in logistics and passenger transport. Besides, the PHEV technology will be utilized to develop products serving longer-distance mobile travel business.
