IHS Global Insight Daily Analysis
Chinese commercial vehicle manufacturer Beiqi Foton may set up a truck assembly plant in Indonesia, reports Asia Pulse, citing Hendry Marzuki, chief executive of PT Foton Mobilindo. Marzuki says that the automaker conducted a feasibility study last year and could proceed with its local assembly plans this year. The company has already decided to establish a sales subsidiary in Indonesia (see Australia - Indonesia - Kenya: November 23, 2011).

Significance: Beiqi Foton's plans include production of light- and heavy-duty trucks in Indonesia, where demand for commercial vehicles is strong. The company last year identified Indonesia as one of five key emerging markets—the others being Russia, India, Brazil, and Mexico—as part of its 5+3+1 international growth strategy. However, Beiqi Foton is hardly alone in spotting Indonesia's strong potential. Other notable Chinese vehicle manufacturers reportedly interested in Indonesia are Chery and Geely.