Ford Motor Co F said on Sunday it has delivered the first set of locally-built Mustang Mach-E electric vehicles to customers in China, setting the stage to compete with electric rivals such as Nio Inc NIO and Tesla Inc TSLA in a crowded and growing market.
What Happened: Ford said the locally-made Mach-Es are being sold through 25 of the automaker's recently opened direct-to-customer stores that are located in key Chinese metropolitan markets.
Ford’s direct-to-customer model operates through company-owned storefronts that are located in key shopping areas with high foot traffic. Customers can get more details on vehicles and even make a purchase, although an option to test drive the vehicles is not available at the site.
Global electric vehicle leader Tesla runs a similar business model that skips intermediaries and dealers and sells directly-to-customers via the internet and in non-U.S. stores.
The legacy automaker previously said it plans to launch 25 such stores in key cities by the end of this year and add 100 more retail locations within five years.
Why It Matters: The Dearborn, Michigan-based Ford began making the Mach-Es from its Changan manufacturing plant in Chongqing (in southwest China) in October. Meanwhile, Mach-Es for the U.S. and European markets are currently built at a plant in Mexico.
The Mustang Mach-E is Ford’s first all-electric crossover named after the iconic Mustang and holds the key to its success in China until it launches more electric vehicle models.
The legacy automaker is expected to begin commercial production of the F-150 Lightning — the electric version of its best-selling truck, next year in the U.S.
Ford is spending $30 billion by 2025 to expand into electrification and to achieve the company's longer-term goal to create a sustainable American manufacturing ecosystem. The automaker expects 40% to 50% of its global vehicle volume to be fully electric by 2030.
Ford earlier this month said it aims to achieve an annual output of more than 200,000 units for Mustang Mach-Es by 2023, a significant jump from its original target of 50,000 units per year.
Price Action: Ford shares closed 0.55% higher at $20.25 a share on Thursday.
Photo: Courtesy of media.ford.com
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