Toyota Motor Corporation (ADR) (TM), Honda Motor Co Ltd (ADR) (HMC): Crunch Time for Ford Motor Company (F) in China

In other words, Japanese automakers seem to be regaining their stride in China at the same time Ford will face much tougher year-over-year comparisons. Will these headwinds undermine Ford’s growth trajectory in China?

Staying strong
Ford’s 50% growth year-to-date puts the company in good position to meet its target of doubling sales in China by 2015. However, slower growth is almost inevitable over the next few months because of the resurgence of Japanese competition.

Fortunately, Ford Motor Company (NYSE:F) is aggressively introducing new models in China to address more segments of the market. Late last month, Ford began selling the Mondeo, a midsize car similar to the popular North American Ford Fusion. Ford has also launched three new SUVs in China this year to meet surging demand for that vehicle type. The early sales data for these new models is encouraging.

Even if Japanese automakers manage to claw back some market share in the compact segment — the Ford Focus has accounted for nearly half of Ford’s unit sales in China this year — Ford’s entry into other market segments should keep growth in the double digits.

That’s obviously not as good as the 50% growth Ford has enjoyed recently. However, it should still be enough for Ford to continue gaining market share. In the long run, Ford’s powerful brand and proven strategy should allow it to capture its fair share of the critical China market.

The article Crunch Time for Ford in China originally appeared on Fool.com and is written by Adam Levine-Weinberg.

Fool contributor Adam Levine-Weinberg has no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors and owns shares of Ford.

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