uploads///

Ford’s Sales Weakness in China Continued in December 2017

By

Updated

Ford’s December 2017 sales in China

Ford Motor Company (F) sold ~140,000 vehicle units in China in December 2017. These data suggested a fall of ~9% compared to its Chinese sales (IYK) in the same month of 2016. 

In November 2017, the company’s Chinese vehicle sales were much lower than its December sales at 118,000 vehicle units. Sales also fell ~8% YoY (year-over-year). With this, Ford’s Chinese market sales fell ~6% YoY to 1.2 million units in 2017.

Article continues below advertisement

Key strengths

In December, Ford’s family car model Mondeo continued to perform well in China and reported a 6% YoY increase in its sales to ~15,000 units. In November, Mondeo’s sales rose 61% YoY in the country. With this rise, the 2017 sales of the Ford Mondeo remained in positive territory, up by ~2% YoY. Notably, 4Q17 was the best quarter ever for Mondeo’s Chinese sales.

Similarly, Ford’s Escort car model sales witnessed an 18% rise in China last month to 42,000 units. In contrast, the company’s imported vehicle sales fell 24% YoY in December.

Comparision with Ford’s US sales

Unlike in China, Ford reported a ~0.9% YoY rise in its US market sales in December. While the company’s US retail sales fell 4.0% YoY, its fleet sales in its home market rose a significant 16.8% YoY last month.

In order to reduce their dependence on a single market, major global auto companies have been exploring new international markets with a key focus on emerging markets. Therefore, continued weakness in international sales could increase Ford’s risk profile, especially in the case of a key emerging market such as China.

Apart from Ford, other automakers such as Toyota Motor (TM), General Motors (GM), and Fiat Chrysler Automobiles (FCAU) have also been focusing on capturing a high market share in the Chinese market lately. These companies have increased their investments in China over the last few years.

In the next article, we’ll take a look at Ford’s brand-wise China sales in December 2017.

Advertisement

More From Market Realist