Ford to expand in China 0

Car sales in China will increase by 5% this year according to the Ford China’s head of Operations. That will represent a second consecutive year of growth for what is the world’s largest automotive market.

Ford sales to be higher than the average

The President of Ford Asia Pacific Africa, Joseph Hinrichs has said that Ford sales will exceed expectations and the average of the industry this year. They have begun introducing new models which will naturally slow down business to start with, but it is expected to take off throughout the year. He believes Ford will be the best selling car brand in China eventually.

Sales dipping in January

Mr Hinrichs has not revealed the figures that he expects yet. January sales equated to 30,976 vehicles in total which marks a 42 % dip from 2011. This was put down to the Lunar New Year Holiday. Ford managed to sell a total of 519,390 in China in 2011 which represented an increase of 7% from 2010.

Mr Hinrichs did reveal that he expects sales to heavily take off in the second half of the year in terms of commercial vehicles. Sales of these particular vehicles did not prosper as desired due to low credit availability. Their commercial vehicle project will be aided by Jiangling Motors China.

No more incentives

The company’s anticipations in terms of sales this year are 8% less than that of the China Association of Automobile Manufacturers. The Government is cutting back on previous incentives that were offered last year in order to increase sales during such a tough financial time for many within the country. Joseph Hinrichs commented on this particular topic saying “It’s pretty clear that with an industry that’s well over 18 million units, the government doesn’t feel the need to have to provide a lot of extra incentives to sell cars,”

China’s sales

In China last year, passenger and commercial vehicles, which are Ford’s speciality, sold 18.51 million last year which equated to a rise of 2.5 % from 2010. 2010 saw sales increase by 32.4 %. 2009 sales saw sales increase by 46 % in 2009. These were heavily thanks to Government incentives.

Mr Hinrichs has said that the new Ford Focus released within the country will carry a great amount of demand and will be produced in the company’s new factory located in South Western China. The factory has the ability to store 150,000 vehicles but can be expanded to more according to Mr Hinrichs.