The American multinational automobile-manufacturing company, Ford Motor, has found itself in a very powerful economic position. Ford news today indicated that the automobile giant has been able to penetrate progressively in the Chinese automobile market. It was able to break its sales record in the People’s Republic of China during the first month of 2015, with an estimated sales growth of 19%. Ford news highlighted the three automobile models – Escort, Concentrate, and Mondeo (Fusion) – that have played their role in ensuring the growth of business in the Chinese market.
In 2014, the automobile producer was able to succeed, as it was recognized as the bestselling brand in the Republic. It is quite expensive to import cars to the country as that can weigh up to two metric tons can be quite difficult and ineffective to transfer. Regardless of this fact, the sales of the imported automobiles, such as Mustang, Explorer, and Edge, increased by 18% in January.
In 2014, the sales volume growth of the Ford Motor company seemed to stall in the China, as the automobile manufacturing firm had fully utilized its production capacity. In the second-last month of 2014, the organization started its third assembling plant in Chongqing. It is anticipated that this newly established plant would be able to enhance the production capacity by 360,000 units yearly. This will ensure the excellence of corporation at the same pace in 2015.
Latest Ford news reported that the firm is planning to establish another plant in the nearby future, which will further increase its production capacity. This sales growth is most likely to play an important role in making sure that the reliance of the company on the North American market is reduced. The future endeavors present the opportunities for the corporation of successful expansion.
Currently, Ford’s operations in the Asian Pacific region are the second-most profitable operations. The sales volume of the company in China accounts for approximately 22% of Ford’s total sales volume. It intends to double that by the year 2020, and its market share in the country is expected to increase to 5%. In the competitive automobile world of China, this amount of share is quite small as compared to the huge market shares of similar producers such as Volkswagen and Common Motors. These giants have been able to grab a market share of 15%. Now it has yet to be seen that to what extent the growth of the Ford Motor company is able to threaten its competitors in the Chinese automobile market.