Ford Motor Co.’s F China sales improved 3% to a record 1,115,124 vehicles in 2015. Meanwhile, the automaker reported an impressive 27% year-over-year increase in sales in the world’s largest automobile market to 124,768 vehicles in Dec 2015, which is also a record high.
Sales of SUVs were particularly strong, with the cumulative sales of Ford Ecosport, Kuga, Edge, Everest and Explorer rising 13% year over year. Sales of vehicles equipped with Ford EcoBoost engines were up 31% in 2015, with nearly 25% customers opting for this engine.
Meanwhile, Ford’s passenger car joint venture, Changan Ford Automobile (“CAF”) recorded a 49% year-over-year increase in vehicle sales to 96,960 units in Dec 2015. Sales of CAF were 836,425 units in 2015, marking a 7% rise from the comparable year-ago period. Both annual and December sales were all-time highs.
However, Ford's commercial vehicle investment in China, Jiangling Motors Corporation (“JMC”), sold 26,391 vehicles in Dec 2015. Sales declined 12% from the figure recorded in Dec 2014 due to weakness in the Chinese commercial vehicle market. Also, JMC’s sales dropped 6% year over year to 253,359 vehicles in 2015.
In Oct 2015, Ford announced that it will invest nearly 11.4 billion yuan ($1.8 billion) for research and development in China over the next five years. The automaker has been trying to enhance its sales in the Chinese market by modifying its vehicles to meet consumer preferences. As a result, it has gained significant market share over the last few years.
Ford will also expand its portfolio of hybrid, plug-in hybrid and electric vehicles in the nation over the next few years. This year, it is slated to launch the C-MAX Energi, a plug-in hybrid, and the Mondeo conventional hybrid in China.
Ford currently carries a Zacks Rank #2 (Buy). Other favorably ranked automobile stocks include Meritor, Inc. MTOR, Cooper Tire & Rubber Co. CTB and The Goodyear Tire & Rubber Company GT, all carrying a Zacks Rank #1 (Strong Buy).
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