The report is out about how Ford Motor Company (NYSE: F)’s sales performance in China in the first two quarters of 2016. It turns out that despite economic slowdown in China, the demand for Ford’s products remains strong in the country. But is not clear what impact Brexit would have on Ford’s Chinese auto sales given that China’s economy relies heavily on exports to Europe and other parts of the world.
The Brexit uncertainty aside, Ford Motor Company (NYSE: F) is celebrating great wins in China and the management of Ford feels fired up to double down on business in China.
Ford Motor Company (NYSE: F) sales exceed 0.5 million
Ford sold 577,097 vehicles in China in 1H2016, which if you compare with the same period last year, you see that sales increased 6%. The figures cited combine the sales of Ford brand, Lincoln and sales of Ford’s joint ventures in China.
If you exclude the number of Lincoln cars sold in China in 1H2016, you find that the sales of Ford brand and the joint ventures reached 564,647 units, indicating an increase of 5% over the same period last year. June was a particular bright spot for Ford in China as sales in the month rose 3% YoY to reach 85,105 units.
According to Ford Motor Company (NYSE: F)’s ahead of the Asia Pacific region, Dave Schoch, Chinese customers are responding well to Ford’s products. The team in Asia hopes that better times are still ahead considering that the company is able to grow sales in China in the face of an apparent economic growth slowdown.
Strong demand for SUVs
Chinese drivers’ love for big cars could be seen in the strong demand for Ford and Lincoln SUVs during 1H2016. Ford said the combined sales of Ford SUV and Lincold SUV rose 27% to 150,000 units.
If you look at the performance of Lincoln in isolation, you find that sales of the luxury car division in China more than doubled in 2Q2016 and nearly tripled in 1H2016. Lincoln sales in 1H hit 12,450 units and easily beat sales in the whole of last year.
Ford Motor Company (NYSE:F)’s Lincoln has announced plans to increase its footprint in China through more dealerships. The company had 45 dealerships in China at the end of 2Q, but it is targeting to have 60 dealerships.