Germany / China – Daimler Trucks AG of Stuttgart, Germany and Beiqi Foton Motor Co Ltd of Beijing, China, jointly announced this month they plan to manufacture Mercedes-Benz heavy-duty tractor units in China for the Chinese premium truck segment with manufacturing operations scheduled to start in two years’ time. Daimler Trucks sees this as the right time to offer Chinese customers a locally-built Mercedes-Benz premium truck as China is not only the world’s largest heavy truck market it accounts for more than 50% of global sales. Daimler points out the Chinese market for heavy-duty trucks in 2019 had a volume of 1.1 million units.

The tractor units are to be built by Beijing Foton Daimler Automotive Co Ltd (BFDA) of Beijing - the 8-year-old joint venture company owned by Daimler and Foton (established 2012) - at a new assembly plant to be constructed and owned by BFDA in Huairou (50km north of Beijing), China.

Daimler Trucks says the tractors are to be based on Daimler Trucks’ global platform strategy, with BFDA responsible for adapting the models to meet Chinese customers’ requirements and localizing production. The JV says an investment exceeding CNY3.8bn (EUR485m) is to be spent on the acquisition of the plant in Hairou and the set-up of new infrastructure and production lines.