FOTON Unveils US$65 Million Mexico Expansion

FOTON will invest MX$1,200 million (US$65 million) in Mexico by 2026 through the opening of a third assembly plant and the expansion of its two existing facilities, according to company executives. The manufacturer confirmed that the new operation will begin in January in Tlajomulco de Zuñiga, Jalisco, where it will assemble Tunland pickups for the domestic and Latin American markets. 

“This plant will be operating starting January 2026. The investment for this plant is almost US$40 million. In addition to that, we are further developing plant one in Lagos de Moreno and plant two in Nuevo León. We expect to reach a total of MX$1,200 million of investment in 2026,” said José Francisco Chávez, FOTON’s general director.

Chávez described the company’s current production profile in Mexico, which includes tractors, cargo trucks, vans, pickups and buses assembled with auto parts imported from China. He noted that the investment plan continues despite tariff pressures and stated that manufacturing will remain under a “made in Mexico” model. He added that FOTON and its partner LDR have achieved a national integration level close to 40%. “The goal with this third plant is to raise it to between 60 and 70% through the development of local suppliers,” he said.

The Tlajomulco plant will focus on pickups, particularly the Tunland line, and on last-mile units. The facility is expected to reach an initial capacity of 1,000 vehicles during its first year of operations. The company will also expand production space to increase output of tractors and medium-duty vehicles. Chávez explained that strengthening the local supply chain is a priority as the company expands its presence in the heavy-vehicle market.

FOTON reiterated that its expansion aligns with the federal government’s Mexico Industrialization and Nearshoring Plan. The company stated that its investment strategy responds to growing demand in domestic and regional markets and to the need for greater production capacity in Mexico. The expansion of its manufacturing base and the development of local suppliers are intended to support long-term operational stability and reduce reliance on imported components.

Chinese truck manufacturers are accelerating local investment plans in Mexico as the government considers import duties of up to 50% on vehicles from countries without trade agreements, including China. Although officials have not confirmed whether the increase will also apply to trucks, tractors and buses, industry leaders assume no segment will be exempt. The prospect of higher costs has pushed companies to expand production, negotiate exemptions and strengthen local supply chains to reduce dependence on imported components.