Foton enters ute market

By early next year, China is to step up its assault on Australia's ute market - claimed to be the third-busiest in the world - with two new brands. They hit the ground running, up against refreshed or all-new models of the Ford Ranger, Mazda BT-50, Toyota Hilux, Volkswagen Amarok, Holden Colorado and Isuzu D-Max.

This week Foton - the world's biggest commercial vehicle maker with 600,000 produced in 2010 - entered the ring with a proposed dual-cab ute with a knock-out punch courtesy of some of the world's best component suppliers. The P201 dual-cab ute - which will get a new name when it arrives early next year - has a Cummins diesel engine, Getrag or ZF transmissions and Dana axles.

These four parts makers are regarded as the pinnacle of heavy-duty suppliers and though Foton importer WMC Group says it raises the price bar, it claims a 20-25 per cent discount on equivalent Japan-badged utes. Spokesman for WMC, Jon Thomson, says pricing is still being determined.

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"But it is fair to say it will be slightly higher than Great Wall utes," he says. "The Foton comes with some serious equipment. But we still see the pricing up to 25 per cent under the equivalent Japanese products."

Compared with these Japanese-branded utes, that could mean prices of about $35,000. Foton, which is part of the huge state-owned BAIC vehicle manufacturing conglomerate, will be joined in the market by Zhongxing (ZX) which this year plans to introduce dual and single-cab utes in rear-drive and 4WD formats.

Foton, which also makes trucks also sold through WMC Group distributor, plans rear-drive and 4WD versions of its utes. Drivetrains for the utes are a 120kW/380Nm Cummins ISF 2.8-litre Euro-5 common-rail turbo-diesel or a Foton-made 2.4-litre petrol engine.

Transmissions are either a Getrag five-speed manual or ZF six-speed automatic. The Foton range will have six versions from its Australian launch date.

The CEO of WMC Group, Jason Pecotic, says the Foton range will complement its other products such as Higer buses and JAC trucks. "Foton will be a game shifter in the ute sector delivering a sedan style interior on a wide body configuration," he says. "It will have a one-tonne payload and a three-tonne towing capacity.

"It will be a compelling proposition for buyers whether they are tradesmen, farmers, fleet operators or private buyers."

Pecotic says Australia is a very important market. "It has the third highest sales of utes in the world and Foton will be using us as a launch pad ahead of its planned move into North America and Europe over the next two years," he says.

Foton only makes commercial vehicles but is planning a move into small cars - including electric - after completing a new factory south of Beijing. The factory will boost car and ute/truck production by more than 220,000 a year.

Foton owner BAIC started in 1958 as Beijing Auto Works. The initials now stand for Beijing Automobile Industry Corporation. BAIC has a joint venture with Hyundai and makes the Santa Fe under its own name.

BAIC also has manufacturing ventures with Jeep, Mitsubishi, Chrysler and Mercedes-Benz. It makes about 50,000 E-Class and C-Class sedans a year.