Foton Motor launches joint venture with COSCO Shipping Specialized Carriers to secure dedicated ocean freight capacity

This vertical integration between automaker and shipping company will give Foton greater control over its logistics network, securing long-term, dedicated ocean freight capacity.

By doing this, Foton can reduce its exposure to freight rate instability, capacity shortages and unpredictable delivery schedules, bolstering its supply chain's resilience by shifting from relying on outsourced logistics to being in control of its own assets and aligning logistics closer with other parts of the business.

Established in Beijing, China, in 1996, Foton Motor produces a range of commercial vehicles including pick-up trucks, HGVs and buses. For 15 consecutive years, the company has ranked first in overseas commercial vehicle sales from China; in 2025, it sold 164,500 units to overseas markets.

With expanding its global presence a key target for Foton, it has begun local production to serve several key markets around the world. It has established local manufacturing bases in China, Brazil, Thailand, India, Russia and South Africa.

Upon launch, 600 Foton pick-up trucks were loaded onto a RoRo vessel to be shipped to South America. The newly delivered vessel, named Kai Yuankou, was branded with the logos of both Foton Motor and COSCO Shipping.

Foton believes that partnering with COSCO Shipping on this joint venture will support its strategy of 'local production and regional distribution', allowing it to steadily increase market penetration in these regions. This move ties into its broader 'comprehensive internationalisation' strategy, transforming its global presence from one based around product exports to a "systematic global presence".

"The joint venture with COSCO Shipping Specialized Carriers is a natural step as the company's overseas business has grown to its current scale," commented Zhu Youfu, vice president of Foton Motor. "This is not only a new partnership but also an upgrade to Foton Motor's comprehensive internationalisation strategy."

The intention behind the partnership is not just to establish an independently operated "maritime golden corridor" for Foton, but to provide a "replicable and scalable" model for other Chinese automakers looking to advance their coordinated expansion overseas.

"By strengthening cooperation with Foton Motor, the two parties will set a new benchmark for synergy between the automotive and shipping industries, and contribute to building a secure and resilient supply chain for Chinese vehicles going global," said Zhang Chi, deputy general manager of COSCO Shipping Specialized Carriers.