China is the second-largest automotive hub after the U.S. and all foreign players have targeted the Nation and have even agreed to the terms of the Chinese government advocating the tie in with local players for marketing and manufacturing parts locally to keep the vehicle costs under tight reins. One such foreign player that is really seeing a great future ahead in China is U.S. automotive player Ford (F, Financial) and is leaving no stone unturned to create its mark in the nation. Recently, news sources have confirmed that Ford is planning to tie in with online chat site WeChat in China. How could such an association help Ford boost its unit sales in China in the long run? Is a new strategy being adopted by the automotive industry stalwart to win young hearts in China? Let’s get into further details to decipher the answer.
In the run to gain supremacy
While other automotive companies are also trying to play around with technology to win in international markets which includes China, Ford has expressed its desire to partner with Tencent Holdings Limited to customize the latter’s online chatting app WeChat for its models available in China, or likely also introduce such a feature in its newer models yet to be released in the Chinese auto market.
David Huang, a senior engineer who heads the Asia Pacific connected services unit of Ford, stated during an interview with Reuters, “There's a demand from our customers… People want to stay connected, stay informed and stay entertained all the time, even when they're driving.”
Ford has been able to grow phenomenally in China in the past year, but its growth is still lagging behind General Motors (GM, Financial) and Volkswagen (VLKAY, Financial), who currently rule in China. To tread past such contenders, building better engines and modifying the look of the model might not be enough to entice the Chinese car buyers. As technology in cars is becoming a preferred choice for selecting a car in China besides its engine specifications, such a venture undertaken by Ford will prove to be a sure boost to its sales which has already grown by over 50% in China during the previous year.
Seeking attention of millions in China
The popularity of WeChat in China does not need much discussion as billions of tech-savvy users in China do access to the online chatting tool on a regular basis. Ford expects that through this introduction of newer technology drivers would be able to sync their smartphones to the car’s software system and control some of the features of WeChat approved by Ford as secure to use, either through voice commands or by limited use of buttons.
Ford’s management strongly believes that if they can introduce WeChat as a safe-to-use online feature in its models, such a technological achievement could drive the market share in China, especially as the economic growth in the nation is gradually becoming sluggish. Also since Chinese customers are attracted to newer car technology and are selecting models to be bought based on fundamental factors such as connectivity, such an agreement with Tencent would aid in strengthening Ford’s foothold further in the Chinese auto market.
Last word
With automotive stalwarts such as General Motors already in the race of adding online services to its cars in China, Ford knows that it cannot trail much behind if it wishes to catch up in the sales game. Hence, the top brass are hoping to build an association with Tencent in the forthcoming days and together these two companies could help in making a difference for Ford in China. Let’s stay tuned and keep an eye on how Ford excels in the rat race among automakers that is already on in China.
