China’s High Demand for SUVs Helps Ford Sales Sky Rocket in First Quarter

Ford sales have continued to rise as we make our way through 2016, but new reports state that not only are the company’s sales climbing at Ford dealers in places like West Valley City, Utah, but also across the country in China. Ford sold 5 percent more vehicles in China during the month of March. Also, due to the high demand for SUVs in China, sales for the first quarter rose a whopping 14 percent, but why the sudden increase? 

Ford China 

Ford currently has two joint ventures for Ford dealers in China — Changan Ford Automobile (CAF) and Jiangling Motors Corporations (JMC). CAF manufactures and sells all passenger cars and SUVS from Ford’s global portfolio and has become very successful. In fact, CAF’s sales rose 12 percent in March and it has sold 244,411 vehicles in the first quarter of 2016. JMC, however, manufactures and sells trucks and commercial vehicles and its sales are suffering. JMC’s sales drop 11 percent in the first quarter and overall sales in March were down 8 percent. 

SUV Demands 

While Ford dealers in Utah and elsewhere are at a high demand for America’s favorite truck — the Ford F150 — China sales call for high SUV demands. In the first quarter sales of 2016, China’s sales of the Escape, Edge, Explorer and Everest were up 38 percent. This clearly explains the success that CAF is undergoing for they are manufacturing all of Ford’s popular SUV. Performance cars such as the Mustang and Focus have also jumped in sales in China, but the SUV’s remain the highest demand. 

Good News for Investors 

Concerns about the slowing economy of China have been surfacing in regards to Ford and its investors. However, despite the slowing Chinese economy, Ford sales have continues to rise in only the first quarter of the year via Ford’s joint ventures.  

Again, the high demand for SUV’s has taken a huge part in its successes in China. With that said, Ford’s China sales are still behind those in U.S. states like Utah, but its $5 billion investment in Chinese expansion is paying off. 

Alyssa Koenig  is an automotive writer reporter for Fusion 360, an SEO and content marketing agency. Information provided by Henry Day Ford. Follow on Twitter