The Rise of Mustang in China

A wild horse by another name

Ford's decision to name their sports car icon after a wild stallion was an inspired creative move. As it stands now, the word Mustang arguably brings the car to mind more than horses. In China, the same word goes by a different name; spelled in our alphabet, the word mustang translates to "yema".

With the fastest-growing middle-class in the world, the past few years have opened up China's market potential to the Mustang. It would stand to reason that Ford would want to adapt the car for Chinese customers; perhaps they would rebrand it there as the Ford Yema. In actual fact, this had been Ford's original plan-- it was met with a copyright infringement lawsuit from a local manufacturer, Yema Auto. When the case won out in Yema's favor, Ford was forced to pay a settlement to the number of 10 million yuan-- approximately 1.5 million USD. In a massive stroke of irony, Yema Auto is a knockoff automaker-- one of many in China-- that manufacture cheap knockoff versions of popular American cars; in their case, the Ford Mustang.

If this story is any evidence, foreign markets can be tricky to breach. Different customers, different cultures, different competitors. With that said, the Ford Mustang has been doing remarkably well since its Chinese introduction in 2015. Although hiccups like the Yema Auto debacle were inevitable, sales for the 'Stang have been on an impressive rise; all of this keeping in mind this would have been unthinkable not so long ago. 

Upward pointing success

The Mustang's Chinese success is one that's virtually certain to grow in coming years. Things didn't take long to get going either; statistics from the market research company IHS Markit report Ford sold 7,125 Mustangs in China last year, making it the country's best-selling coupe. Contrasting that with the 125,809 Mustangs sold worldwide in 2017, the Chinese market share might not seem like much, but that's gradually changing. China has traditionally been the world's great exporter, but the rising middle-class there has a strong appetite for American goods. In the words of Ford Asia Pacific's President Dave Schoch, "there's 50 years of pent-up demand we've never officially exploited."

>>Join the conversation about the ride of the Mustang in China here in The Mustang Source forum.

Americans get a better deal

Markets aren't created fairly for the customers. For proof to that effect, a price comparison for the 2015 Mustang between China and the US makes things clear. Where a base model in the US started at $25,300, the same in China went for 399,800 yuan-- or $64,340. There's a variety of factors that play into the huge price spike. To start, there's a 25% import tariff on US-manufactured cars. Shipping and homologation (gov't approval) fees would factor in as well. However, it's also worth noting this price could reflect the customer the Mustang is aimed toward in China. While the base 'Stang is reasonably affordable for many Americans, the Chinese customer base is unambiguously slanted towards the wealthy. 

>>Join the conversation about the ride of the Mustang in China here in The Mustang Source forum.

Their competition has followed them east

The free market system has been particularly kind to Ford over the years. However, that inevitably means competition; because after all, the Chinese market wasn't going to be limited to one brand of American throttle. The Chevrolet Camaro actually got a head start in China, arriving as early as 2011. The Camaro immediately found a fanbase there, a success owed in part to the car's showcase in the Transformers film franchise, which enjoyed considerable success there. Despite the four year advantage, the Camaro hasn't been nearly as successful. With only a couple thousand Camaros sold in China since the 2011 debut, the Mustang has already run laps around them.

>>Join the conversation about the ride of the Mustang in China here in The Mustang Source forum.

The appeal? It's American

IHS Markit market analyst James Chao was optimistic about US sports cars in the Chinese market when interviewed: "We're seeing the beginning of a muscle car culture [in China.] Something that is uniquely American appeals to the Chinese consumer. The image that it relays to the automotive public is very positive."

Case in point. Though it may be odd to consider as an American, there's a powerful cultural capital for the exotic American-ness of certain US exports. There are countless examples where US pop culture laid the groundwork for what would later become trendy elsewhere in the world. This pattern rings especially true in a context like China, where the practical embrace of capitalism and world markets birthed a sudden middle-class that looks at American brands as an aspirational ideal. This cultural pull is evident in something like the American Muscle Car Club of China, which boasts some 8000 members. 

>>Join the conversation about the ride of the Mustang in China here in The Mustang Source forum.

The global marketplace is reaching maturity

All of this aside, most of what makes the Mustang so cool, to begin with, rings universal. Style and quality have a way of finding their mark wherever it may be. While China may be the most promising market with regards to growth, a lot of the same optimism also applies to the European market. Ford has been taking the Mustang's Chinese incursion seriously; while it may not lay claim to the Yema branding, they're finding other ways of rooting the brand regionally; just last year, Ford's Sync 3 console system was announced with full Chinese handwriting recognition.

Muscle cars aren't the most promising end of this market push from a financial lens; still, according to Bill Ford, (Ford's Executive Chairman) things are looking up: "The progress we have achieved in China is just the start. We now have a chance to expand our presence in China and deliver even more for customers, our partners, and society."

>>Join the conversation about the ride of the Mustang in China here in The Mustang Source forum.

And, for information on maintenance and repairs for your Mustang, head on over to our How-Tos at MustangForums.com!