The 2nd Belt and Road Forum (BRF) for International Cooperation opened in Beijing on April 25, 2019. As the highest-standard international cooperation platform under the framework of China’s Belt and Road Initiative, BRF welcomed more than 40 state heads, government leaders and senior delegates of international organizations, nearly 5,000 foreign guests from more than 150 countries and more than 90 international organizations.
The same day, a joint venture agreement signed between Gong Yueqiong, President of Foton Motor Group,and Nopadol Chiaravanont, Vice Chairman of Industrial Business Group at Charoen Pokphand Group (CP Group). The two parties will jointly establish a joint venture company in Thailand, which will set up a manufacturing company and a sales company to take advantages of both parties in commercial vehicle technology and market operation capabilities into full play in an effort to become the third largest commercial vehicle brand in Thailand.By high-quality products manufacturing, it will realize long-term development of the Thai and Southeast Asian markets.
As the largest business group in Thailand, CP Group was founded in 1921 and is headquartered in Bangkok, Thailand. CP Group business scope covers agriculture, animal husbandry, food, retail, telecommunications, real estate, automobile industry, finance, etc. The group business covers more than 20 countries and regions, with nearly 300,000 employees and annual business income of over 300 billion Yuan.
As an international commercial vehicle company that has led China’s commercial vehicle industry for 14 consecutive years, Foton Motor has a business scope covering a full series of commercial vehicles including medium and heavy-duty trucks, light-duty trucks, vans, pickups, bus and coaches, construction machinery vehicle, etc. Foton Motor has established joint ventures with world-renowned companies such as Daimler, Cummins and ZF. At present, Foton Motor has 9 independent companies worldwide, more than 2,000 overseas distribution networks, 27 overseas KD factories, and a production capacity of 100,000 units/year. Foton Motor’s total sales of commercial vehicles exceeded 8,891,000 with products and services covered more than 110 countries around the world.
Based on positive expectations for the future growth potential of the Thai and ASEAN markets, the joint venture will set up a sales company and a manufacturing company respectively, aiming to be the third largest commercial vehicle brand in Thailand.
The joint venture company will make use of Foton Motor’s advantages in commercial vehicles, new energy vehicle products and manufacturing technologies, Internet of Vehicle technologies and CP Group’s strategic customer relationships, bank resources and social influence for operating Foton Motor’s heavy trucks, medium trucks, light trucks, coaches and new energy vehicles. Foton Motor will authorize the joint venture company to use Foton’s brand, trademarks, logos, as well as technical support such as manufacturing. As a follow-up plan, the two parties will invest in the establishment of manufacturing plants based on market sales, in an effort to realize the independent production of FOTON AUMAN, AUMARK, AUV coaches and new energy vehicles to develop the ASEAN market in due course.
Foton Motor becomes the first Chinese commercial vehicle company to establish a joint venture company in Thailand, which becomes another achievement in intellectual property and technology output following its cooperation with Piaggio Group in 2018, the largest light commercial vehicle manufacturer in Europe. Foton Motor will also combine local conditions in a more localized management model and a more mature service system so as to boost the development of the local automobile industry in Thailand and further improve the industrial layout of Southeast Asian market.
In recent years, Thailand’s direct foreign investment has decreased and economic growth rate was under expectations. “Thailand 4.0” was born under this macro background, with the purpose of promoting the top ten target industries with a new economic model. Mr. Dhanin Chearavanont, Chairman of CP Group, has publicly stated on occasions that CP Group will seize the opportunity and take an active part in the construction and development of the “Eastern Economic Corridor” in Thailand and create a new model of international cooperation.
Automobile manufacturing industry is one of the top ten target industries of the “Thailand 4.0” Strategy, aiming to promote the industry towards intelligent manufacturing. This is the second joint venture of CP Group with Chinese automotive companies following the joint venture with SAIC Motor in 2012. CP Group will take advantage of Foton Motor’s intelligent manufacturing and technologies to realize a leap development from the blank of the commercial vehicle market to intelligent commercial vehicles. On the one hand, it will lay a solid foundation for CP Group to achieve long-term development in the ASEAN market, on the other hand, CP Group will also drive the “Thailand 4.0” Strategy towards intelligence as a benchmark of implementing the “Thailand 4.0”.
The joint venture of Foton Motor and CP Group is a strong combination of technology and market under the trend of international cooperation. also a demonstration outcome that is highly integrated with the “Thailand 4.0” Strategy. The two parties will promote the development of the automobile industry in Thailand and ASEAN markets through innovative cooperation mode， boosting the intelligent development of the “Thailand 4.0”automotive industry.