What Happened: The automakers reported it sold 164,352 vehicles between July and September in China, marking the largest year-over-year sales growth in nearly four years. Compared to Q3 2019, the current sales figures represent a 25.4% upsurge and a 3.6% increase against the second quarter of 2020.
Ford operates in China through its joint ventures with companies like Chongqing Changan Automobile (Changan Ford), Jiangling Motor Corporation (JMC), and the Taiwanese automaker Lio Ho Group (Ford Lio-Ho).
Ford’s localization strategy involves producing and manufacturing Ford and Lincoln vehicles domestically. In Q3, Lincoln sales were up 64.8% year-over-year, JMC brand vehicle sales were up 38.3%, and Ford sales surged 12.5%.
In Taiwan, Ford Lio-Ho recorded 9,128 unit sales, a growth of 60.7% year-over-year, driven by demand for Ford Focus and Ford Kuga.
Talking about the sales momentum, Ford China President and CEO Anning Chen said that the company is, “building on growing consumer preference for our iconic brand and favorable product mix of luxury and near-premium utility vehicles.”
Why Does It Matter: The Chinese automobile market is showing signs of strong demand and many global automakers are reporting increasing sales figures. Earlier this week, General Motors Company (NYSE:GM) declared a 12% hike in its quarterly sales in China. This was the firm time the veteran automaker registered a quarterly rise in sales in the country in two years.
Among electric vehicle makers — the new entrants in the Chinese auto space — Li Auto Inc (NASDAQ:LI) reported a 31% sequential growth in Q3 2020 sales, while Nio Inc – ADR (NYSE:NIO) reported a 154% year-over-year surge. Xpeng Inc. (NYSE:XPEV) reported a 266% rise in the Q3 deliveries.
Price Action: Ford stock gained 0.53% during trading hours and an additional 0.26% during extended hours to close at $7.64.
Photo courtesy: Rutger van der Maar via Flickr