The U.S. automaker, Ford Motor has taken a step ahead in their long-term plan to shift from gasoline powered vehicles to electric vehicles, by entering a strategic partnership with China’s Anhui Zotye Automobile Co. Reportedly, Ford has inked a Memorandum of Understanding with the local zero emission electric car maker in order to develop a totally new line of electric passenger vehicles market in China. The proposed joint venture would sell electric cars under a new banner instead of Ford’s, subject to the mandatory requirement of regulatory approval, cite reliable sources.
The potential to launch a totally new line of electric cars in China’s automotive market is indeed a strategic move by the automotive giant. China has already garnered the title of the world’s largest electric vehicles market and is rapidly becoming the hotbed of advanced automotive innovations. With the regional EV business expected to grow at a rapid pace, Ford finds China to be the most lucrative ground to rest their electric vehicle lineup. The American automotive conglomerate expects a sale of around four million electric cars in China by the end of 2025. It has been also claimed by the automaker giant that by the aforementioned year, 70% of Ford vehicles sold in China market would be equipped with electrified options.
The deal is also shedding a positive light on the changing automotive industry landscape where leading companies are betting big on advanced technology to sustain the fierce competition. As electric vehicles signify the future of the automotive industry, Ford Motor and other similar biggies are targeting China to get a strong foothold in the global business space by strategically teaming up with local competitors to win a competitive advantage over international rivals.
As far as Ford Motor is concerned, apart from its strategic tie up with the domestic leader in the China automotive high performance electric vehicle market, the firm already has engaged in two joint ventures earlier. With almost 600,000 Ford vehicles already sold in China in the first quarter of the year, it is no surprise that this alliance will boost the auto giant’s car sales. While all these sales remain exclusively for China market, this agreement also marks Ford’s commitment toward the global electrification program.
Satarupa develops content for Market Size Forecasters. An electrical engineer by qualification, she worked for two years in the electrical domain before switching her professional genre. Following her childhood passion, she opted for a career in writing and now pens down articles pertaining to marke...