Ford Motor, expecting record sales in China this year, is adding 100 dealers to its network, mostly in inland cities that are replacing big, coastal regions as the major growth driver in the world's largest auto market.
The move, more aggressive than a previously announced scheme, will bring the number of its dealers in China to 340 by the end of the year, said Joe Hinrichs, president for Ford's Asia and Africa operations, up from the original target of 310.
"We did a pretty thorough study and looked at where our opportunities were and decided we need to be more aggressive," Hinrichs told Reuters in a phone interview on November 25, adding that more dealers will open for business in 2011.
As China's national wealth grows, smaller cities in the north and west are becoming increasingly important for foreign automakers that already dominate big, coastal cities.
Vehicle sales in tier 3 and tier 2 markets jumped 67.7 percent and 56.5 percent, respectively, in 2009, compared with a 42.6 percent increase in tier 1 cities, according to Xu Changming, a senior industry researcher at the State Information Center.
Ford's Fiesta, priced between 78,000 yuan and 110,000 yuan ($11,700-16,600), are selling extremely well in smaller cities where people tend to be more price-sensitive. Other global players are also making a push toward inland China.
GM's mini-vehicle venture in southern China rolled out teh Baojun 630 sedan this week, while Nissan Motor and its partner, Dongfeng Motor Group, also unveiled a joint venture brand, Venucia.
Hinrichs said Ford can compete effectively in different market segments, adding the automaker would introduce a number of new products in China in the coming years. Jiangling Motors Corp, which makes both JMC light commercial vehicles and Ford's Transit, also complements Ford's China portfolio, he added.