Beiqi Foton Motor Co., China's largest commercial vehicle maker by sales, expects new-energy vehicles to account for about 10% of its sales volume by 2015, Vice President Zhao Jingguang said Friday.

 

"Foton places strategic importance on the development of new energy vehicles," Zhao said at a news briefing.

 

The company's new-energy vehicles will comprise mostly hybrid buses as well as electric road-sweeping vehicles and cross-over vehicles designed to carry passengers and goods, said Michael Wang, Beiqi Foton's public relations director. A lot less than 1% of the company's sales now come from new-energy vehicles, he said.

 

The company is targeting annual sales of 1.5 million vehicles by 2015, 30% of which will be exported, Wang said. Beiqi Foton expects exports to account for 8% of sales volume this year.

 

In the January-August this year, Beiqi Foton sold about 400,000 vehicles. It has set a sales target of 567,000 units for the full year, Wang said.

 

Beiqi Foton's sales in 2008 rose 1.9% to 409,563 units.

 

Zhao also said he expects the Chinese government to approve Beiqi Foton's plan to set up a 50:50 truck and engine joint venture with Daimler AG.

 

Zhao didn't give other details.

 

In January, Beiqi Foton said its board had approved plans to form the JV with the German company. It said the venture would have a total investment of CNY6.35 billion ($928.5 million).

From: Dow Jones