Dongfeng begins expansion in Toluca

STATE OF MEXICO - Dongfeng, the Chinese assembler, has opened a dealership in Toluca, State of Mexico, where it will initially sell the KX and GX tractors.

Luis Felipe Thur de Koos Garzón, Director of Strategic Planning of Energon Motors, Master Dealer of the automaker in our country, explained that the initial investment to expand the brand is approximately US$15 million, in addition to what is invested in each distributor, which is variable.

He also explained that for the remainder of the year they estimate to sell 250-300 units and for next year, with the opening of more agencies, they have the goal of selling about 1,000 units.

For this year, Dongfeng plans to reach 8 distributors in cities such as Toluca, Monterrey, Queretaro, Guanajuato, Guadalajara, and next year to have between 25 and 30 distributors to cover the main commercial regions of the country. In the first stage, they will market only heavy units from 8 tons to tractors.

Similarly, to provide after-sales service, the brand has a spare parts warehouse in Querétaro with an initial investment of US$3 million, with which they will supply distributors in this first stage.

The second stage of the brand's expansion contemplates the construction of a plant, which will probably be decided by the end of next year, although it is still a project under analysis since the brand also intends to supply the Latin American market.

“The great challenge in the Mexican market is Nearshoring, and above all, the Mexican automotive industry has great potential. Mexico is the second largest market in Latin America after Brazil and for Dongfeng is one of the main strategic focuses for the coming years,” he concluded.