Ford Motors Company’s (NYSE:F) China sales declined last year by 26.1% from the previous year as the company continues to struggle with prolonged overall sales in the Chinese market. The decline in market demand has affected the mass market for the company’s brand and sports utility cars.
Ford Sold 567,854 cars in china in 2019
The company indicates that it sold around 567,854 units in 2019 in China, and although there was a decline from a year earlier, it was nonetheless an improvement from the 36.9% decline in 2018. In the fourth quarter, the US automaker indicated that it delivered 146,473 cars in China, which is a 14.7% YoY drop. The company has warned that the situation could even get worse in 2020.
In the last two years, the company has been trying to revive its sales in its second-largest markets after sales began declining in 2017. In 2018 sales dipped almost 37% after just a 6% decline in 2017.
Ford Greater China’s president and chief executive, Anning Chen, indicated that the company experienced a challenging 2019. Chen stated that despite the challenges, the company experienced stability in market share in the high-to-premium sector.
Ford strengthening its product lineup
Going to 2020, the company expects the external environment as well as the downward trend of the industry volume to persist. However, Ford is planning to put more effort ion strengthening its product lineup by offering consumer-centric products and experiences to help in mitigating external pressure and also enhance dealer’s profitability.
Over the next three years, Ford is planning to launch over 30 new models. Out of these, a third will be electric cars. Similarly, the automaker has indicated that it will localize its management teams, and it will hire more Chinese staff as it aims to enhance connections with its joint venture partners.
Currently, the company manufactures its cars in China through a joint venture with Jiangling Motors and Chongqing Changan Automobile. There are also plans to partner with Zotye Automobile to lower-priced vehicles.