Ford Motor Company (NYSE:F) – Is Ford “Daqi” is china?
In the U.S, Ford Motor Company (NYSE:F) had a great May, and across the world, Ford has been making hay while the sun shines. China is the largest and the fastest emerging auto market in the world today. In May 2013, the company’s sales in China were 45% higher in comparison with the same period, and a record 70,540 passenger vehicles were sold. Changan and JMC, Ford’s joint-venture partners also rose by 48 and 21% respectively in comparison to May 2012. In the first five months of 2013, Ford sales totaled 332,467, which was 48% rise from 2012. People in China are getting richer and the demand for luxury cars has been rising at an unprecedented rate.
The changing face of the auto market
Though most people who drive premium cars are established executives or managers, a larger number of young entrepreneurs want to be at the wheel of a luxury vehicle. In the coming years, it is expected that sales of luxury cars in China will grow two times faster than mainstream cars in the coming years. In 2012, there was a car demand of 12.7M units in China. In 2013, this is expected to touch 15M.
This, in a nation where 92% of the population doesn’t even own cars. Give it a decade and the demand is projected to reach a mind-boggling 30M units.
Ford is “daqi”
There was a time when Ford was just an also-ran in the Chinese market but all that is changing. Looking at the market demand in China, Ford is planning on launching ten new vehicles in the country and it will be cutting the ribbon on 5 new factories by 2015. Today, Ford is slowly developing an image as an uber-cool car that young people would like to own. People have been going to auto shows, walking around Ford cars that have been displayed there and saying that they are “daqi”. When the Chinese refer to something as “daqi”, it means that has presence or that it is grand. And so, though Ford did not have a very grand presence in China at one point of time it sure is getting there.