Local Foton CKD production officially kicks-off at ‘PE’ plant

Foton has confirmed the official commencement of local complete knockdown (CKD) kit manufacturing at parent company BAIC’s plant in the Eastern Cape.

Full product spectrum

Part of the brand’s so-called “Lighthouse Plan”, the assembly at the controversial facility in the Coega Industrial Zone in Nelson Mandela Bay will involve light-duty commercial vehicles, trucks and SUVs.

The 41 768 m² plant, which has been a contentious issue since opening in 2018, has a reported capacity of 50 000 units, and started pre-production of the first Foton Tunland G7 bakkie last year.

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Equally is well known is that the facility will also soon start producing the BAIC B30 alongside the existing Beijing X55 Plus.

“The launch of CKD production represents a major milestone for Foton globally and for South Africa’s automotive industry,” Foton South Africa CEO Marius Smal said.

“By establishing its first overseas manufacturing base in South Africa, Foton is expressing confidence in the country’s industrial capability, skilled workforce and strategic importance as a gateway to regional and international markets”.

Plant with a tricky history

Reportedly, some 3 000 jobs have been created by the plant since its high-profile opening witnessed by Presidents Cyril Ramaphosa and Xi Jinping eight years ago.

However, it has faced a barrage of criticism for being nothing but a white elephant.

During a 2024 media visit, the facility was to said employ 113 across six departments, of which 42 were so-called white-collar workers.

What’s more, only 282 of the now defunct D20 and X25 models had been built at a time when assembly of the Beijing X55 was only starting.

The plant, opened at a cost of R11-billion, also operates on a semi-knockdown kit (SKD) basis and has a claimed automated operation of 60%.

Bump up

Foton’s inclusion, as indeed those of the B30, will likely increase offset both domestically and from an export side.

Aside from its truck division, Foton’s part will involve producing the Tunland G7, and later the more upmarket Tunland V7 and V9.

“As production expands, the facility will play an increasingly important role in Foton’s global manufacturing network,” Smal said.

“South Africa’s established automotive industry and its position as a gateway to emerging markets make it an ideal base for future growth.”

Foton’s performance

Since re-entering the South African market in 2024, Foton has been consistency ranking above its parent company in outright sales.

In its first full year, it amassed an offset of 3 612 units consisting of its both light commercial vehicles and trucks. So far this year, this stands at 925 units.

By comparison, BAIC sales fizzled out at 2 365 last year and 374 this year so far.

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