Published: Tue, August 22, 2017
Business | By Max Garcia

China EV Sales Seen Soaring 1000%, So Ford Eyes Local Partner

China EV Sales Seen Soaring 1000%, So Ford Eyes Local Partner

Bill Russo, managing director at Gao Feng Advisory Company, said Ford is the first global automaker to partner with a local firm that exclusively produces electric cars.

The document calls for the creation of a 50/50 joint venture to manufacture electric cars in the world's largest new vehicle market, and sell them under a Chinese brand name.

Ford sees China as the fastest growing market in the world for new energy vehicles (NEV) and forecasts that segment to grow to six million vehicles per year by 2025, of which approximately four million would be all-electric.

The US auto maker signed an agreement to start talks with Anhui Zotye Automobile, a leading Chinese electric vehicle maker. It estimates that market to grow to roughly 4 million EVs by 2025.

"Electric vehicles will be a big part of the future in China and Ford wants to lead in delivering great solutions to customers", says Ford Asia Pacific exec Peter Fleet.

Officials are also working on new rules that would require 8% of vehicle sales to be electric next year and 12% by 2020.

Shares of Ford Motor advanced 1.3% to 10.71 on the stock market today, extending their bounceback from last week's slide to a almost two-year low.

China, struggling with alarming pollution levels in major cities, is aggressively pushing plug-in vehicles and has poured in tens of billions in investment, research funding and subsidies, drawing many new automakers to launch projects.

Ford wants to get into the electric vehicle game, and just signed a memorandum of understanding as it moves toward that goal.

Anhui Zotye sold more than 16,000 all-electric vehicles in the year through to July, a 56 per cent year-on-year rise.

This is the third joint venture Ford has set up with local Chinese automakers.

Ford expects that the number of new energy vehicles (NEVs: hybrid, electric, hydrogen, etc.) will exceed six million units a year by 2025, and that two-thirds of that huge number will be electric vehicles.

Like this: