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Why Ford's sales in China have suffered a collapse

September 21, 2018 07:42 | Source: Chinanet
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Original title: What is the reason for the collapse of Ford's sales in China

Auto China. com, September 14 (Reporter Wang Fang) According to China's auto production and sales data in August 2018 released by the China Automobile Association, from January to August this year, the cumulative sales volume of Chinese cars was 18.0961 million, with a slight increase of 3.5% year on year.

In terms of sales by country, in August alone, 684100 Chinese brand passenger cars were sold, an increase of 7.28% month on month, down 11.06% year on year, accounting for 38.22% of the total passenger car sales, with the share down 1.89 percentage points from the previous month. Among them, the sales volume of American cars in the Chinese market is weak. The sales of passenger cars were 191500. Compared with last month, American brands showed a downward trend, and their market share plummeted from 12.2% a year ago to 10.7%.

   Reasons for the collapse of Ford's sales in China

According to Bloomberg, industry analysts pointed out that due to the lack of competitiveness of their products, Ford and other American automobile manufacturers' market share in China has been declining. According to statistics, Ford Motor sold 97300 vehicles in the second quarter of this year, compared with 130400 vehicles in the first quarter, a year-on-year decline of 25.38% and 43.59%. As for the reasons for Ford's collapse in the Chinese market, Reuters said that because Ford did not upgrade its models, consumers turned their attention to competing products.

Earlier this year, Ford said that by the end of 2025, it would launch more than 50 new models in China, including 8 new SUVs and 15 Ford and Lincoln brand electric vehicles. However, since the total sales volume of Ford in China reached 1.27 million in 2016, which created a sales peak, Chang'an Ford has never had a new generation of products, including Focus, Yihu, Mondeo, etc., which were launched five years ago, causing the cliff like sales decline, mostly due to the lack of attention to the domestic market.

On the other hand, not long ago, because Trump imposed a 25% surcharge on cars made in China, Ford announced that it would cancel the plan to export new cross-border cars produced in China to the United States.

   Sino US trade friction has little impact on the car market

In response, Xu Haidong, Assistant Secretary General of the China Automobile Association, said that the decline in the share of American brands such as Ford Motor was mainly due to the delayed updating of the model lineup. The market share of American automobile manufacturers in China is shrinking, and the problem is mainly related to the lack of competitiveness of their products. However, the impact of Sino US trade friction on the car market is very limited. Chinese consumers have not shown anti American sentiment, nor boycotted American brand products.

(Editor in charge: Wang Zi, Wu Xiaoqin)

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