Q: What are the company’s offering and value proposition for the mining industry? 

HM: FAW Elam is a global brand and one of the biggest Cargo truck OEMs in the world due to its production capacity of 1,800 units per day. As a brand, we are the representatives in Mexico and operate through an assembly plant. All units are manufactured in China and assembled in Mexico to then be shipped to our dealerships nationwide. The company has 16 dealerships in the country. By the end of December 2023, we would like to have 22, consolidating our presence in the Mexican market. 

One key differentiator is that the company’s solutions offer the customer cargo trucks for multiple uses with capacity in the light, medium and heavy load ranges from 1 to 80 tons of cargo capacity. Moreover, it offers diesel, gasoline as well as environmentally friendly natural gas engines. Soon, we will also offer electric versions of five different cargo capacities.

Additionally, FAW Elam uniquely offers immediate delivery and has competitive prices that generate savings of up to 35 percent. All our trucks are equipped with the best quality components from worldwide part suppliers. Another differentiator is the company’s after-sales service with competitive maintenance prices and highway rescue and assistance units. Cargo trucks are scarce worldwide; we are the only truck dealer in México that always has the inventory to supply trucks to customers immediately or soon thereafter.

Q: How has Mexico’s natural gas vehicle fleet developed?

HM: The issue of natural gas vehicles (NGVs) has been on the market for years. Europe, the US and South America are way ahead of Mexico in this matter. Natural gas is sustainable and can generate between 50 and 60 percent savings in fuel costs. Furthermore, natural gas gets pressure injected into the tanks with specialized equipment, so extraction for fuel theft is almost impossible to achieve. In case of an accident, the gas system has security measures to make it very unlikely to explode, gas tends to dissolve up into the air and does not tend to spill and accumulate in the ground. NGV engines are more robust and generate cleaner combustion than diesel engines, which prolongs the engine’s life. One area of opportunity is that Mexico does not have enough compression stations for natural gas, but the tendency of the market in the short term will offer more stations, this is the future for Mexico’s transportation industry. With the current infrastructure, we have carried out successful projects for clients, and we constantly carry out tests with our demonstration trucks to show our clients how they can become more sustainable. 

FAW Elam recently delivered a fleet of 93 NGV units to a municipality looking to become greener while saving costs. This is the first municipality to have bought 220 electric vehicles (EVs) and cargo equipment that uses either natural gas or operates as a hybrid. 

Q: The company has R&D Centers in China. What opportunities do you see for Mexico to participate in these processes?

JM: Mexico has ample experience regarding manufacturing, assembly and engine technologies. In the matter of cargo load, technology is often developed in Germany, Asia, the US, and Canada. In Mexico, the industry is highly focused on manufacturing. Nevertheless, our brand is also open to Mexico’s benefits. Our corporate headquarters in China sees Mexico as the gateway to enter the Latin American and North American markets. The North American truck market is protected and currently does not accept Chinese cargo enterprises to enter the country directly, which is why China is heavily betting on manufacturing in Mexico.

Furthermore, FAW is looking to increase its assembly capacity in Mexico, to supply all Central and South America. FAW Elam will build a manufacturing plant in the next two years. For China, we are a strategic partner to deliver high-quality manufacturing and supply trucks to the Mexican and Latin American markets. 

For now, there is not much to offer regarding technology development in Mexico, but the country has a great deal of talent for manufacturing and assembly and the number of qualified workers is rising. The COVID-19 pandemic revealed that the brand must have a relevant base and operations center in Mexico to avoid problems like supply chain disruptions.

Q: What are the company’s medium and long-term objectives?

JM: The goal is to finish consolidating FAW as the No. 1 global Asian cargo truck OEM in the Mexican market and achieve national dealership coverage. We are opening six new branches next year, covering the area from Tijuana to Merida. 

FAW Elam is a heavy vehicle OEM specializing in cargo trucks for loads between 1  and 80 tons.