Ford has posted impressive sales figures in China.
Ford has recently released its impressive sales figures in China. Months ago, the company reported its strong sale figures in the region. Many analysts were skeptical that such strong sales figures were “one-timer.” However, the latest results have proved that the organization’s performance in the region is quite good.
The chief “trigger” for such healthy sales is the tax incentive of the region. China’s decision of slashing the vehicle tax in half is what has been powering the sales during 2016’s first quarter and the tax incentive will remain active throughout the year too. In comparison with the previous year, in March, the Blue Oval’s sales in China jumped 5% to 114,788 units. Stronger sales in January and March conveniently balanced the sharp steep sales had in February due to Chinese New Year, which halted the sales and production.
For the whole quarter, the sales in the region sprung up 14% and the final figure rests at 314,500 units. CEO and chairman of Ford Motors China, John Lawler cited that the company is quite happy with the persisted and consistent growth. Additionally, the Chinese customers are giving positive product feedback to the business. He added, “We remain committed to offering a great portfolio of vehicles and providing world class service to our valued customers.”
There were few bright spots of the sales in the region with a slightly lighter decline. The highlights of the sales were Ford’s SUV that had healthy sales in China. In addition to it, the combined sales of the latter with Edge, Ecosport, Everest, Explorer, and Kuga (Escape) totaled around 80,000 units in the first quarter. This accumulated to be massive 38% gain in comparison to last year’s same period. In March alone, the $50 billion business sold around 26,000 units or more, which was an increase of 29% in comparison with last year’s March.
In addition, the strong sales of the SUV, Ford’s passenger car joint venture, Changan Ford Automobile (CAF) sales elevated up by 23% in comparison with last year’s same period and, during first quarter, totaled 244,411 units. Ford’s most popular Mustang sales also jumped up by massive 75% and the company’s performance-oriented Focus ST posted an increase of 23%, during the first quarter.
Quite surprisingly, Jiangling Motors Corporation – which is the company’s commercial vehicle in China – posted around 11% decline in comparison to the prior year and sold around 60,306 units in the first quarter. The decline in the sales is quite appalling as its commercial vehicles have an instant and strong growth in the European and the U.S. markets. The investors have to wait for a couple of years to find out whether Ford commercial vehicles’ success can be exported in the Asian region.
Lastly, during the first quarter, Lincoln sold around 5,500 units marking a threefold increase in comparison to last year. Since Lincoln was new in China, therefore the sales figure may not be giving fair picture but the organization intends to import more Lincoln in the region. The company is also planning to open Lincoln dealership in China. The region has immense importance if the company plans to sell 300,000 Lincoln units across the globe by 2020.
Ford sales have given the company a positive image and impressive financial results can be expected in the first-quarter earnings call.
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