Ford passenger vehicle sales in China will likely continue to strengthen and rise almost 50% in 2009 from last year, sales chief Nigel Harris has said.
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Sales at Ford’s joint venture, Changan Ford Mazda Automobile rose 40% year on year in the first 10 months to 188,244 units, and year-end sales are expected to rise further, he told Dow Jones Newswires.
“We’ve grown ahead of the industry, which we’re really pleased about,” said Harris. When the government incentives came on at the end of January, the market responded instantly.”
Vehicle sales in China from January to October rose 37.7% to 10.89m units, according to the China Association of Automobile Manufacturers.
Earlier this year, the government introduced measures aimed at boosting vehicle sales, halving purchase tax for vehicles with engines 1.6 litres and under to 5%, and also introduced subsidies in rural areas for some cars. The policies are set to expire at the end of the year.
Sales of the Fiesta and Focus models have driven the joint venture’s strong performance, Harris said. Consumers who purchase the Fiesta, which comes with either a 1.3-or 1.5-litre engine, qualify for the lower tax rate.
Harris said the Chinese government will likely extend the tax incentives into next year. “I haven’t heard anything to the contrary. The government has been very clear in saying the automotive sector is very important to the Chinese economy.”
He said he expects China’s overall auto market to grow 10% next year in terms of sales, and “we think we’ll grow ahead of the industry next year.”
Total vehicle sales in China in 2010 will likely rise to 15 million units, Harris said. Earlier this month, CAAM said overall automobile sales in China could reach 13 million units this year, up from 9.38 million units in 2008.
Ford plans to introduce three new models to China and one updated model over the next three years, Harris said, without providing further details.
Ford has around 3% of China’s passenger vehicle market, but “that’s not the ultimate market share that we want. We want something more than that,” Harris said, but declined to specify the company’s target.
“We are hungry for more sales and a greater share,” Harris told Dow Jones. “15% (growth) would be satisfying, but in actual fact we’re pretty hungry for more.”
