The Beijing-based commercial vehicle-maker has signed a Memorandum of Understanding (MoU) with the Maharashtra Government to invest Rs 1,676-crore to set up a manufacturing facility. The company plans to launch vehicles from its India facility by 2013.
"Initially, we will launch a host of products in the LCV and MCV segments in the first year itself from our Indian facility," the company's Executive Vice-President for India Operations, R Shankar, told PTI here.
"The Indian commercial vehicle industry is the world's fourth-largest and is expected to grow rapidly. We are confident of playing an important role here," he said.
The company's new facility will come up near Pune in Maharashtra, he said.
Foton has 10 major product brands including Auman, Auv, Aumark, MP-X, Midi, Saga, View, SUP, Ollin and Forland.
The company has 14 plants spread all over China and has JVs and partnerships with Cummins Inc, USA, and Dialmer Trucks, Germany.
"We are not joining hands with others to set up our India facility. This plant will be the company's first facility outside China," he said.
The Shanghai Stock Exchange-listed company plans to have five manufacturing bases outside of China in emerging markets, besides entering the developed markets of North America, Europe and Japan, by 2020.
Foton has set up KD operations in Russia, Iran, Pakistan, Vietnam, Indonesia and Kenya and exports to over 100 countries around the globe.