Top Chinese Commercial Vehicles Producer Reports Tripled 2009 Profit

More and more automakers take advantage of China’s booming car market, with both domestic and imported brands enjoying increasing sales. China’s largest commercial vehicles producer, Beiqi Foton Motor Co Ltd, has recently announced that its 2009 net profit tripled, an increase driven by the manufacturer’s hefty growth in the high-end sector of the market, as Gasgoo reports.

To be more specific, the company’s profit for 2009 reached a figure of $152.3 million (for the January-December period), as compared to the $50.6 million figure posted by the company in 2008. Beiqi Foton is owned by Beijing Auto.

The producer’s sales saw a 47 percent year-on-year increase in 2009, managing to reach 602,021 units. In terms of sales, the company is China’s number one commercial vehicles producer. Beiqi Foton’s total revenue surged 49.1 percent last year, reaching $6 billion. In 2008, the company registered a total revenue of $4.4 billion.

But while the company did well on the domestic market, its exports fell 15.3 percent last year. Beiqi Foton only managed to export 24,443 vehicles in 2009, due to a decreasing demand on multiple markets.

The company is planning to expand its business during the current year: Beiqi Foton is currently building a plant in Miyun county, Beijing, that will serve for the producer’s passenger car development. The production site requires a $440 million investment and will have a annual production capacity of 200,000 cars.

The commercial vehicles maker recently announced that it will form a join-venture with Daimler AG. The new business will produce medium and heavy-duty trucks in China, using Daimler technology.
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About the author: Andrei Tutu
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In his quest to bring you the most impressive automotive creations, Andrei relies on learning as a superpower. There's quite a bit of room in the garage that is this aficionado's heart, so factory-condition classics and widebody contraptions with turbos poking through the hood can peacefully coexist.
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