Ford’s sales in China: January 2018
In December 2018, the company’s China sales were much higher than January at 140,103 vehicle units and also fell ~9.0% YoY (year-over-year). With this, Ford’s Chinese market sales fell ~6.0% YoY to ~1.2 million units in 2017.
Key negative changes
In January 2018, Ford’s (F) family car model Mondeo’s sales fell sharply after performing well in the previous couple of months. Mondeo’s China sales fell 22.0% YoY last month to just 6,539 units compared to 14,773 units sold in December 2017. The 2017 sales of Ford’s Mondeo were in positive territory and rose ~2.0% YoY, while 4Q17 was the best quarter for Mondeo’s China sales.
Similarly, Ford’s Escort car model sales in China witnessed a sharp drop of 18.0% YoY in January after rising 18.0% YoY in December 2017.
Comparing with US sales
As in China, Ford reported an 6.6% YoY decline in its US market January sales. While the company’s US retail sales fell 4.3% YoY, its fleet sales in its home market also disappointed and fell by 12.0% 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 a key emerging market such as China.
Apart from Ford, auto giants General Motors (GM), Toyota (TM), and Fiat Chrysler (FCAU) also have been working to increase their market share in China. These auto industry players have also increased their investments in China in the last few years.
In the next part, we’ll take a look at Ford’s brand-wise China sales in January 2018.