Artists impression of the new JV truck plant

Artists impression of the new JV truck plant

Daimler Truck has confirmed a mid-November media report it and Beiqi Foton Motor would produce and distribute Mercedes-Benz tractors in China.

The Beijing Foton Daimler Automotive joint venture (BFDA) would localise new heavy duty tractor models adapted to Chinese market requirements.

Start of production is scheduled in two years in a new truck plant in Huairou (Beijing) owned by BFDA. The joint venture is spending RMB3.8bn (EUR485m) for acquisition of the plant and the set-up of new infrastructure and production lines.

Daimler Truck will continue to import and sell other Mercedes-Benz models both through the existing dealer network and direct wholesale to meet the customers need for top line trucks for special applications – for example concrete pumps for the rapidly growing construction sector.

"China, the world's largest truck market, is of utmost importance to us and has become one of our important markets for future growth. In order to make full use of this potential, we made the decision to locally produce Mercedes-Benz heavy-duty tractors in China for China," said Martin Daum, CEO of Daimler Truck.

The Chinese market for heavy duty trucks took 1.1m units in 2019. For 2020 it is to be expected that more than half of the trucks sold globally will be registered in China.