Beiqi Foton, China’s truck and bus maker, driving in

Beiqi Foton Motor Company, a Chinese firm, is planning to set up a commercial vehicle manufacturing plant in Pune, and sell its buses through a separate venture.Foton, which claims to be the largest commercial vehicle maker not just in China but all of Asia, has been circling India for more than a year and has held detailed discussions with Tier I component suppliers.The company has zeroed in on Pune where its commercial vehicle plant could be operational as soon as 2012.Some industry veterans have already been hired by Foton and a management would also be in place soon, two people familiar with developments said.As of now, Foton does not have an Indian partner. These people said Foton plans to manufacture and sell the entire range of trucks and buses (small, medium and heavy) and wants to become a serious competitor to the country’s largest commercial vehicle maker, Tata Motors.A state-owned listed company in China, Foton is headquartered in the Changping district of Beijing.It sells trucks and passenger vehicles in 90 countries.It is interesting to note that another significant Chinese CV player, SAIC, is already present in India through its equal joint venture with General Motors.But unlike Foton, the GM-SAIC team will first begin with a light commercial vehicle, which should be unveiled by the end of this year.Another source said Foton will bring its buses independently — separate from its commercial vehicle plans in India. Beijing New Energy Bus - company’s bus manufacturing division, will provide completely knocked down (CKD) kits to an Indian partner.“The company will introduce its BJ 6123 CNG low-floor city bus, which is a 12-metre vehicle made as per Delhi Transport Corporation norms,” this person said.In 2009, Foton had won a $16.8 million deal from Ashok Leyland, India’s second biggest bus and truck maker, to supply CKD bus kits. As per the terms, Foton had to deliver 750 buses to Ashok Leyland in 150 days.With the contract over, the Chinese company has started seeking clients for CKD bus kits. It is in talks with a leading Indian bus-body manufacturer to set up an assembly line, sources said.An official from Foton’s bus manufacturing division confirmed the hunt. “We are seeking partners for a long-term partnership. Our bus business will be completely different from our commercial vehicle plans in India,” the official, who did not wish to be named, said.The company currently manufactures 6,000 buses annually and exports around 1,000 of them.Foton is currently in talks with Pune-based Synergy Management Advisors to set up the assembly line.The bus segment has great potential in India, say experts.“Currently India has a shortage of around 500,000 buses, which is drawing the interest of global players. The Indian manufacturers are able to roll out only 70,000-80,000 buses a year,” said Balaji Rao, director, Synergy Management Advisors.