Beijing, March 30th, 2023 - Foton Motor and Cummins have announced an intensified strategic collaboration in Southeast Asia, culminating in the signing of a contract to jointly invest in Foton Cummins' Thailand engine factory. This strategic move aims to provide powertrains for Foton's CP vehicle base and enhance business operations in Southeast Asia. The agreement reflects an advanced stage in the strategic partnership between Foton Motor and Cummins, as they expand their footprint in the region and offer diverse power solutions to a global clientele.

As a thriving emerging economy, the Association of Southeast Asian Nations (ASEAN) has garnered recognition as one of the world's most promising regions for development. The enduring strategic cooperation between China and ASEAN, driven by initiatives like the "Belt and Road" policy as well as the encouragement of Chinese enterprises to go global, emphasizes the significance of ASEAN countries as key investment destinations. In recent years, Foton Motor has significantly expanded its business presence in Southeast Asia, including Thailand, Malaysia, and the Philippines. The company has witnessed a gradual increase in market share across various vehicle categories, earning acclaim in local markets for trucks, buses, and other specialized vehicles.​

Cummins, a pioneer in global power technology, established its Asia-Pacific business headquarters in Singapore before expanding into the Chinese market. With a comprehensive service and distribution network covering the entire Southeast Asian region, Cummins has played a crucial role in product exports as Chinese commercial vehicle and construction machinery companies have surged in number.

The strategic partnership between Foton Motor and Cummins has thrived for 17 years, encompassing light to heavy-duty engines, complete engines to after-processing parts, and extend from pure production and manufacturing to linked R&D. This enduring collaboration, from China to the global stage, has evolved into an exemplary model for the industry. The decision to jointly invest in the Foton Cummins Thailand Engine Factory (Foton Cummins Thailand Engine Co., Ltd.) reflects a meticulous strategic approach. The partnership stays anchored through feasibility, economic linkage research, consideration of market trends, legal and regulatory requirements, as well as vehicle and engine localization projects. Leveraging the Foton Cummins Engine Company’s successful business platform, the collaboration will further support Foton's vehicle business development in Southeast Asia.

As a supplier of core power components for complete vehicles, the Thailand factory will produce engine products covering all Foton Cummins' diesel power product lines. A flexible production line with assembly, testing, spraying, and accessory production capability will be implemented to cater to customers' diverse needs for multiple varieties and small batches. The production line will adopt world-class systems such as Oracle and CMES.

The Thailand factory plans to complete registration in 2023 and commence production in 2024, aiming to establish an ASEAN localized supply chain, sales, and service system while enhancing competitiveness, increasing sales volume, and growing market share.

As a longstanding event in the automotive engineering sector, AMTS has been meticulously developed over nearly two decades, establishing a profound presence in the Chinese market. Its influence extends not only to vital automotive hubs like Shanghai, Shenzhen, Chongqing, and Wuhan but also leverages RX Global’s extensive international resources. The event's reach spans across the globe, with active endeavors to explore markets in Brazil, Indonesia, Japan, South Korea, and Thailand. Collaborating with industry-leading brands, AMTS is dedicated to fostering the growth and transformation of the global automobile manufacturing industry.

Running parallel to this industry development, AMTS 2023 (Shanghai International Automobile Manufacturing Technology & Materials Show) is set to take place at the Shanghai New International Expo Center from July 5th to 8th, 2023. The exhibition will spotlight welding, painting, final assembly, parts engineering, future automobile development, and new energy engineering, with a substantial exhibition area of 90,000 sqm. Featuring over 1,000 participating brands from home and abroad in automotive materials and design, technology and equipment, quality and assembly, and engineering and services sectors, AMTS 2023 promises to be a focal point for professionals in the automotive engineering field. It is expected to attract 90,000 industry professionals for in-person visits and negotiations, providing an all-inclusive business exchange platform.

We look forward to your participation in 2023!

Source: Cummins China