The global automotive industry is currently undergoing a major transformation, characterized by a swift reshaping of market dynamicsThis wave of change presents unprecedented opportunities for companies while simultaneously intensifying competitionIn the commercial vehicle sector, the situation is even more urgentOn one hand, established players exert continuous pressure, while on the other, new entrants disrupt the status quoUnder such dual competition, the key to survival and success for all commercial vehicle companies lies in leveraging their advantages effectively as they navigate this new era.

Foton Motors, a leading industry player, finds itself in a delicate position amidst these changesWith the company entering a new development phase and setting its sights on becoming a market leader in green technology, every move made by Foton is closely watched

The company not only exemplifies the health of the industry but also sets a direction for others to follow.

So, how does Foton strategize to tackle these challenges? Recently, at the Foton 828 Brand Night event, the company showcased its roadmap towards growth and its impressive strategic reservesFoton's strategies indicate a clear understanding of the market’s evolving demands.

Currently, while the battle for market share in passenger vehicles appears to be stabilizing, the competition in the commercial vehicle segment remains fierce and deeply entrenchedThis anxiety stems from significant market structural changes as well as the broader pain points associated with the ongoing industry transformationOne core element driving this upheaval is a fundamental shift in user demands and expectations.

How then does Foton plan to break through these challenges? The answer is straightforward: transformation

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This approach, though simple in theory, tests the company's comprehensive innovative prowess across production, R&D, service, and system capabilitiesMoreover, in an era dominated by smart, connected energy solutions, the need to accurately lead innovation and development is paramount.

During the recently held 2024 China Automotive Industry Development International Forum, experts emphasized that the Chinese automotive sector is at a crucial intersection of transformation, redefining energy paradigms, and global developmentThis period demands a faster adaptation to new production capabilities and the innovative application of fresh ideas, technologies, and business models to bolster high-quality growth.

Commercial vehicles, often referred to as the engine of economic progress, are facing increasingly complex challenges that encompass economic cycles and competition from leading new entrants such as Geely, Chery, BYD, and Great Wall's foray into the commercial vehicle sector.

However, alongside these crises lie opportunities

Insights gathered from prestigious international firms that have successfully traversed market cycles generally convey optimism for the future of the Chinese commercial vehicle sectorFoton, having achieved rapid growth in the past, still stands firm at the forefront, leveraging first-mover advantages to secure its position as it embarks on this new phase of development.

On August 28, 2023, Foton celebrated its brand rejuvenation, marking the beginning of a new chapter focused on high-quality, low-carbon developmentThe firm has committed itself to driving energy revolution solutions, aspiring to become a global leader in green technology.

A year later, the brand night once again took place on August 28, revealing a more detailed strategic framework aimed at achieving their objectives

This comprehensive strategy spans four key dimensions—new energy, intelligence, global outreach, and ecological development—highlighting Foton's technological advances and strategic foresight.

Foton has clearly signaled its intent to lead the transformation in the commercial vehicle segment through these strategic pillarsDuring last year's brand night extravaganza, the focus was more on community engagement rather than merely showmanshipThe event was strategically held at the Foton X Lab, emphasizing the company's commitment to innovation and technical mastery.

According to Foton’s growth plan, by 2025, they aim to achieve production of L2++ autonomous vehicles; by 2028, the commercialization of L4 autonomous products is expected; and by 2030, the share of new energy vehicles within their offering is projected to exceed 50%, ultimately striving to become a globally recognized leader in new energy commercial vehicles.

Additionally, Foton aims for 300,000 units in overseas sales, with a target that 30% will comprise new energy models, all while enhancing and refining their self-developed "2+12N" ecological model.

Research by Roland Berger forecasts significant penetration of new energy in commercial vehicles, with expectations that, by 2030, heavy-duty truck penetration rates will exceed 25%, and light trucks will exceed 30%. Foton's ambitions, however, appear to set an even higher bar

To achieve its stated objectives, the company has developed a pragmatic pathway.

This involves a commitment to nurturing parallel development of "pure electric, hybrid, and fuel cell" technologies, thereby ensuring depth in the core technological aspectsThe emphasis on intelligent automation means that Foton is enhancing its mastery over essential software algorithms and control systems while cultivating substantial hardware capabilities for intelligent driving ecosystemsClearly, green technology has become an integral part of Foton's identity.

From an external viewpoint, Foton Motors has consistently outpaced its competitorsSince its inception in 1996, it quickly evolved into a publicly traded company just three years after its foundingNotably, it also captured the title of the top seller of light trucks in China at a remarkable pace

By 2009, the company had built a comprehensive lineup of commercial vehicles, effectively becoming the largest seller of commercial vehicles globallyThis positioned Foton as a benchmark in the industry during its pursuit of globalizationBy 2021, it shattered records by crossing the ten-million mark in cumulative sales faster than any other competitor.

Looking to the future, Foton is undertaking what it describes as a "second entrepreneurial phase." This ambition is marked by a comprehensive transition to cater to the modern demands of mobility in a new energy and intelligence-driven environmentThe commercial vehicle sector is undeniably undergoing radical shifts as it aligns itself with the logistics landscapeThis evolution has imposed new challenges upon the entire supply chain.

Analysts highlight the necessity of adapting vehicle designs toward specific scenarios; however, they caution against purely conformist approaches that risk obsolescence in a fiercely competitive market

The recent stricter emissions regulations amplify the urgency for companies to remain ahead of the curveFortunately, Foton has shown itself adept at just that, with foresight into shifting market landscapes.

Back in 2005, while many competitors hesitated at the prospect of new energy vehicles, Foton was ahead of the game, launching China’s first series of fuel cell buses and trucksThis not only established its leading position in the new energy commercial vehicle market but also laid a solid foundation for future technological advancements and market penetration.

The dual focus on new energy and intelligence became evident with Foton's 2016 introduction of its first intelligent connected light truck, which marked the beginning of its strategic pivot towards smart technologyContinuing this trajectory, Foton has consistently allocated resources to enhance its intelligent driving capabilities, steadily creating a comprehensive lineup across various categories that incorporate intelligent driving technologies.

According to the latest semi-annual report, Foton has diversified its offerings to encompass around 1,000 product resources spanning pure electric, hydrogen fuel, and hybrid technologies, covering 253 specific operational scenarios

The company currently boasts 16 technology innovation and R&D centers globally, alongside ten complete vehicle bases, six parts manufacturing bases, and a network of more than 130 sales and distribution points in numerous countries.

Looking ahead, Foton is committed to continuing this growth trajectory, expanding its capabilities, and further enhancing its infrastructure to ensure seamless mobility in an increasingly interconnected world.

At the Foton brand night, Liu Gang, the vice president of research and development at Foton’s Auman division, articulated the crucial factor driving competition in the era of smart energy: the comprehensive capability of productsLiu's enthusiasm was palpable as he introduced the global debut of the Auman Galaxy 9 model—a testament to cutting-edge technology and Foton's ambition to set a new global standard in the commercial vehicle market.

Emphasizing fundamental design principles and completely forward-thinking development, the Auman Galaxy 9 stands as a flagship heavy-duty truck built on an industry-first architecture

Coupled with innovative aesthetics and features, it promises to address all road and construction scenarios with a multifaceted approach that focuses on multiple sources of energy, including diesel, electricity, hydrogen, and gas.

In terms of intelligence, the Auman Galaxy 9 is set to redefine standards with an advanced collection of smart driving features that integrate 10 cameras, five millimeter-wave radars, one lidar unit, and a high-performance central control processor, facilitating over 28 intelligent driving functionalities.

Moreover, the model incorporates a state-of-the-art smart cockpit system offering over 800 entertainment functionalities and upwards of 500 security measures, ensuring robust interaction between drivers and vehicles while catering to three major application scenarios, including driving, resting, and vehicle management.

Foton’s spokesperson, Gong Haidong, predicts a rapid expansion of the commercial vehicle's smart capabilities, forecasting that the penetration rate of L2 driving assistance technology could surpass 40% in the next two years