Ford Motor Co aims to grow faster than China's car market this year, which it expects to expand 10 percent in 2009, thanks to the rollout of a new Fiesta small car.

Nigel Harris, head of Ford's sales and marketing in China, said the carmaker grew more confident after its flagship car venture in China beat its retail sales target by 17 percent in the first two months.

"If the industry is 10 percent, we will grow more than the industry this year," Harris said, assuming strong growth was maintained in March.

Changan Ford Mazda, a tie-up with Chongqing Changan Automobile Co and Mazda Motor posted a 5.9 percent fall in sales in 2008 as a slowing economy slammed the brakes on China's once booming car market.

Harris attributed his bullish forecast for 2009 largely to a new Fiesta small car officially launched across the country a week ago.

"The timing is perfect," he added, referring to the launch of the Fiesta at a time when Beijing has unveiled incentives, including a halving of purchase taxes on smaller cars.

The new policies helped push the country's car sales growth back into double digits in February, according to data provided by an industry group.

The four-door Fiesta sedan and a five-door hatchback version, with engine sizes of 1.3 and 1.5 liters respectively, are priced between 78,900 yuan and 111,900 yuan ($11,540-16,360).

The hatchback has already snapped up orders of well over 4,000 units in a pre-sales run over the past several weeks, he said.

"Fiesta belongs to the segment which benefits mostly from the tax incentives. It has the potential in terms of volume," said Yi Junfeng, an analyst with Changjiang Securities, who just toured a Ford plant in the eastern city of Nanjing where the car is made.

Car sales growth in China, which overtook the United States in January to become the world's largest auto market, slowed to a single-digit rate in 2008 for the first time in at least 10 years as consumer confidence waned in a slowing economy, spurring government steps to bolster demand.

The incentives, from scrapping some road fees to subsidies for farmers who trade in their polluting vehicles for more fuel-efficient ones, have also given other domestic and foreign companies, a shot in the arm.

General Motors, which already makes pick-up trucks and mini-vans with SAIC Motor in southern China is seeking a light commercial vehicle tie-up with FAW Group, banking on policy incentives to drive auto sales in rural areas.

Harris said he expects Jiangling Motors Corp, in which Ford owns 30 percent, to benefit from the policies as well, due to the potential in the country's rural areas.

But the automaker has no plans to further raise its capacity in China, currently at 499,000 units annually, in the near term.

Agencies

(China Daily 03/16/2009 page8)