Foton, a Chinese manufacturer of trucks and pickups, announced plans to invest 1.2 billion pesos to open a new plant in Jalisco and expand its two existing plants in other areas of Mexico, according to Fton México CEO José Francisco Chávez.

Chávez said the new plant will require an investment of 40 million dollars. The remaining funds will be allocated to the expansion of Foton’s plant in Lagos de Moreno, also in Jalisco, and another facility in the northern state of Nuevo León.

The new factory, which is expected to start operations in January 2026, will be located in the municipality of Tlajomulco de Zúñiga, south of Guadalajara, and will focus on the production of Tunland pickup trucks.

Foton’s partner LDR Solutions said that once completed, the plant will employ 115 people and will produce 1,000 pick-up models per month. Some of the pick-ups will feature gasoline motors, some will be built with diesel engines and others will be hybrid vehicles.

Chávez said tariffs haven’t hindered Foton’s expansion plans in Mexico. While Foton’s tractor-trailers, cargo trucks, vans, pickups and buses, are assembled from imported auto parts and components from China, the company plans to sell its products under the Made in Mexico program.

To bear the Made in Mexico seal issued by the Economy Ministry, products must be 100% assembled in Mexico regardless of the origin of their inputs.

However, in collaboration with LDR Solutions, Foton is looking to achieve production using between 60% and 70% of local inputs wherever it “makes sense.”

“Our plan with this third plant is to achieve between 60% and 70% of local integration, developing national suppliers. Naturally, we will nationalize the parts that make sense to nationalize,” Chávez noted.

Foton Motor, headquartered in Beijing with assets exceeding 50 billion Yuan (US $6.9 billion) and 300,000 employees, saw a double-digit growth in sales in Mexico according to data from the National Institute of Statistics and Geography (INEGI).

In its report, INEGI revealed that the company recorded a remarkable year-on-year increase of 73.6% between January and October this year, resulting in 1,184 units sold.

With reports from El Economista