Ford Joins GM in Pickup-Truck Drive into China

(Beijing) — A new slice of American auto culture is driving into China, with Ford Motor Co.’s new plan to bring one of its popular pickup trucks to the world’s largest car market.

Ford said it will import its F-150 Raptor pickup trucks to China, announcing the move just two months after cross-state rival General Motors Co. disclosed a similar plan to sell its Chevrolet Colorado and Silverado models in the market.

Despite their popularity in North America, pickup trucks are relatively uncommon in China, especially among a burgeoning middle class that has driven the nation’s car-buying boom. Instead, most existing pickups are older models built by state-run companies and that use dirtier diesel fuel.

First GM and now Ford are hoping that Chinese motorists will develop a taste for such vehicles, which are favored by handymen, contractors and other types of workers that frequently need to haul goods around major cities. Models from both companies typically retail for $30,000 to $50,000 in the U.S., but would likely cost more in China due to import duties.

Ford said on Friday that it has already exported its first Raptors to China, joining its existing stable of Ford- and Lincoln-brand cars now on sale in the market.

“Raptor’s unique looks and capability have generated amazing buzz at every auto show we’ve brought it to around China,” said David Schoch, Ford’s Asia Pacific president. “The F-150 Raptor is another example of our commitment to offer a wide range of vehicles for customers in China — everything from SUVs to high-performance cars and trucks.”

In November, GM also announced its own plans to sell pickup trucks in China, saying the vehicles would hit the market in the first half of this year.

Both brands had previously skipped such gas-guzzling vehicles on their China road maps, preferring to develop a more environmentally friendly image. But as the overall auto market matures and SUVs gain popularity, the pair decided to try developing the market.

Such pickup sales are likely to be relatively modest at the outset, probably less than 1 million per year, according to one analyst at a major brokerage, speaking on condition of anonymity due to company policy. He added that Beijing traditionally hasn’t encourage pickup sales because most trucks were domestically produced and used dirtier diesel fuel.

As a result, more permits are required for pickup-truck buyers, and the vehicle type hasn’t been heavily promoted among China’s newer generation of urban drivers, he added.

“In the beginning, pickups were used in the countryside, in more rural areas,” he said. “But now the government will see how these new initiatives go. If these vehicles get a good reception, the government could gradually lower the thresholds. I think there should be some demand.”

China is the world’s largest auto market, with sales rising 13.7% last year to top 28 million units. A big part of the jump was fueled by a 47% gain in SUV sales, which topped 9 million units as consumers flocked to the larger but less-fuel-efficient vehicle type.

Contact reporter Yang Ge (geyang@caixin.com)