April 8, 2017 7:00 pm JST

Ford revving up electric-car campaign in China

US automaker capitalizing on rapidly expanding market

YUICHIRO KANEMATSU, Nikkei staff writer

Ford Motor will launch the plug-in hybrid Mondeo Energi sedan early next year.

COLORADO SPRINGS, U.S. -- The competition to develop environmentally friendly cars in China just got hotter after U.S. automaker Ford Motor said Thursday it will electrify most of its vehicles in the mainland within the next decade.

By 2025, Ford plans to have electric and hybrid vehicles account for 70% of its sales in China. Although the Chinese government generously subsidizes green vehicles, Ford's latest move has largely been prompted by stricter environmental regulations coming down the pipe. Ford is adapting to the expected changes by placing a heavier focus on local production and sales of electric vehicles.

The car company will get the ball rolling by launching a plug-in hybrid sedan at the beginning of next year. The vehicle will be produced at a plant jointly owned by China's Chongqing Changan Automobile. Ford will also put out within five years a small electric SUV that can run for over 450km on a single charge.

Ford will start making electric-vehicle powertrains and other components in China by 2020. The automaker is also developing batteries and other technological advances for next-generation electric vehicles in Nanjing.

Electric vehicles, which do not produce exhaust, are expected to take off in China in the near future. Some 146,800 of the vehicles were sold in 2015, but that number will skyrocket 14-fold to 2.03 million in 2035 and account for nearly 40% of the global market, according to forecasts by Tokyo-based market research firm Fuji Keizai.  

European automakers are busy setting up their own partnerships in China. Volkswagen and Anhui Jianghuai Automobile are pursuing a 50-50 joint venture with the aim of manufacturing and selling green cars. BYD and Daimler, another Sino-German pair, are marketing luxury electric vehicles through a joint venture.

Asia300

Chongqing Changan Automobile Co. Ltd.

China

Market(Ticker): SHE(000625)
Sector:
Industry:
Consumer Durables
Motor Vehicles
Market cap(USD): 9,289.35M
Shares: 4,802.64M
Asia300

BYD Co. Ltd.

China

Market(Ticker): HKG(1211)
Sector:
Industry:
Consumer Durables
Motor Vehicles
Market cap(USD): 19,087.82M
Shares: 2,728.14M

Get Insights on Asia In Your Inbox

To read the full story, Subscribe or Log in

Get your first month for $0.99

Redeemable only through the Subscribe button below

Once subscribed, you can…

  • Read all stories with unlimited access (5 articles per month without subscription)
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

We could not renew your subscription.
You need to update your payment information.

To read the full story, Subscribe or Log in

Once subscribed, you can…

  • Read all stories with unlimited access (5 articles per month without subscription)
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

We could not renew your subscription.
You need to update your payment information.