China's largest commercial-vehicle producer Beiqi Foton Motor recently signed a cooperation agreement with Moscow city government, and announced the establishment of the company's European headquarters and Russian unit in the capital of Russia, Xinhua News reported yesterday.

The report said Beiqi Foton plans to enter the European auto market with Moscow as its headquarters, and meanwhile Foton's Russian division, or the Foton (Russia) automobile company, was set up in Moscow, a unit which will be in charge of Foton's auto sales, R&D and investment in Europe.

Beiqi Foton, a subsidiary of Beijing Automotive Industry Holding Co. (BAIC), is expected to start local assembly in Russia by the end of 2010. It plans to build a 100,000-unit auto base in Russia by 2012, to produce light commercial vehicles, pickups, vans, heavy-duty trucks and SUVs for European markets.

The expansion in Russia is a part of Beiqi Foton's 2011-2015 five-year plan. The automaker plans to build factories in Russia, Brazil, Mexico, India and Thailand by 2015 and will also explore the EU, U.S. and Japanese markets.

Beiqi Foton entered the Russian auto market in 2005. The company built its first auto factory in Russia in 2008. It exported more than 10,000 commercial vehicles to the Russian market by end 2008.