China: The most thriving automotive market in the world has no place for foreign brands – Part 3

More importantly, the Ministry’s list is just another effort to undermine foreign brands.  Late last December, Beijing announced a cut back in approvals for foreign companies to build plants, and we can be sure there will be unfairly means to ensure sales growth of local manufacturers.  In more candid moments, foreign car executives say they expect a punishing regulatory environment in China in the next few years.

Ford opened up the new plant in China to increase the production of 15 new cars it needs to bring into the reach of the Chinese public. Ford Focus is the first of them but strict rules and regulation are not helping the company in its cause.

In addition to catching up with the desired sales figures, the company also needs to  catch up with its international counterparts like General Motors and Volkswagen. GM sold 2.55 million vehicles in China last year and Volkswagen sold 2.26 million.  Ford, in contrast, sold only 0.52 million of such commodity.

However, being last in the race has some advantage to the Detroit-based company. In 2011, foreign models grabbed nine of the top ten sales spots in China, so you can guess Beijing officials will be going after the Buick Excelle, the leader with 253,500 vehicles sold, or the second-place Volkswagen Lavida, 247,500 sold, before they have a take on any Ford model.

Geely, and the likes of it, will go after GM and VW, and the government, in order to promote its local brands, will not leave any stones unturned to confirm such fate. However, as it is behind in the race, it is more likely that these companies will come after Ford and by then the company will have sought a new plan.

Short URL: https://www.newspakistan.pk/?p=14811

Posted by Usman Khalid on Mar 6 2012. Filed under Automobiles. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.