SUVs help Ford to big gains in China
The SUV boom is proving to be as popular in China as it is in the U.S. Ford sales in China rose 17% in November from a year earlier, led by sport utility vehicles such as the Explorer and Edge.
The automaker operates in China through two joint ventures — Changan Ford Automobile and Jiangling Motor Corp. It also sells a small number of vehicles imported from North America and elsewhere.
Changan Ford, Ford’s passenger car joint venture in China, sold more than 96,000 vehicles, up 14% from November 2015. So far this year, Changan Ford has sold nearly 842,000 vehicles, up 14%. Jiangling Motors, which produces commercial vehicles, reported November sales in- creased 29% to 26,285 from 20,310 a year earlier. Sales of Ford’s imported vehicles in China edged up 2.5% to 1,637.
Combining all three categories, Ford’s China sales for the year jumped 10.7% to 1,090,294.
“Ford is gaining more momentum in China each month, and we are on pace for a record year in China,” said Peter Fleet, vice president of marketing, sales and service for Ford Asia Pacific. “We are seeing increasing demand across our lineup.”
There is concern in China’s auto industry that sales growth could slow next year if the government ends or cuts back on a sales tax cut implemented in 2015 for cars with engines of 1.6 liters or less. The tax reduction is scheduled to expire at the end of 2016. Reuters reported Tuesday that the government is considering extending the tax cut.