United States based global auto maker Ford is setting strategies to regain market share that it had lost in the Chinese market, the largest auto market in the world – even before the US.
More than 30 new Ford and Lincoln vehicles would be launched by it for the Chinese market exclusively, announced the American carmaker recently. That would be done over a period of three years as a part of its strategy to stage a comeback in the Chinese market and increase declining sale of its cars.
Ford said in a statement that electric vehicles would make up about one third of all of the new vehicle models in being planned for the Chinese market. There has been significant and fast growth in the sale of electric vehicles in China in recent years even though there has been an overall slowdown in the Chinese auto market on the overall. This is because of positive policies of the Chinese government to reduce the levels of pollution in the cities of the country.
“China is leading the world with smart vehicles, and is a key part of Ford’s global vision for the future,” Ford CEO Jim Hackett said in a statement.
After is home market of the United States, China is the second biggest market for Ford.
The latest announcement made by Ford was part of its larger strategy of re-launching of the company in China and which includes according more focus on new technology and adapting its Ford and Lincoln brands to local needs.
The performance of the company in China has been dismal in recent times with an almost 40 per cent year on year drop in sale in China in 2018. The operations strategy of Ford in China was re-jigged in October with the aim of capturing a greater share of the auto market there. The strategy included the appointment of industry veteran Anning Chen to run its local operations.
“Ford is deeply committed to China, and with our new China leadership team and vision, we’re investing in the future,” Hackett added.
Just like many of the foreign car makers in China most of its China sales is made by Foprd through the joint venture with a local company which is mandatory still now under the Chinese laws for foreign companies.
Another factor that has affected the performance of Ford in the market is a wider slow down in the Chinese economy. The fast paced economic growth of China has been a big source of growth for Western automakers for years now.
Over the last year or so, the conditions in the Chinese market have become tougher because of the slowdown of the wider economy and because of the impact of a trade war with the US. Drop in sale in China has been faced by most of the large international car makers including GM, VW and Jaguar Land Rover.
(Adapted form CNN.com)