Shares of Ford Motor Co. (F) gained 2.4% on Jun 6, after the company announced strong May sales in China. The automaker sold 93,323 wholesale vehicles in China in the month, which reflects a 32% year-over-year increase over 70,449 units sold in May 2013. Year-to-date sales of Ford China amounted to 461,473 units, up 39% from 332,308 vehicles sold in the first 5 months of 2013.
In the month under review, sales of passenger cars surged 35% to 71,981 units for Ford China. Sales of passenger cars in the first 5 months of 2014 escalated 46% year over year to 347,547 units.
Ford Focus, which was Ford’s bestseller in China in 2013, recorded a 22% year-over-year increase in sales to 33,341 units in May. Apart from Focus, Ford Mondeo also remained popular in the country. The car’s sales grew an outstanding 90% to 10,395 units in May 2014.
Meanwhile, Ford’s passenger car joint venture, Changan Ford Automobile (CAF) witnessed a 32% year-over-year increase in vehicle sales in May 2014 to 67,454 units.
Further, Ford's commercial vehicle investment in China, Jiangling Motors Corporation (JMC.V), sold 21,342 wholesale vehicles in May 2014. Sales surged 25% over 17,057 units in May 2013.
Ford’s revenues in the first quarter of 2014 grew 0.8% to $35.9 billion on the back of market share gains in the Asia-Pacific region, particularly China. The automaker’s market share improved to 4.5% in the nation, fueled by strong sales of Kuga, Mondeo and EcoSport.
Ford currently carries a Zacks Rank #3 (Hold). Some better-ranked automobile stocks worth considering are Fox Factory Holding Corp (FOXF), Gentherm Incorporated (THRM) and Magna International Inc. (MGA). Fox Factory and Gentherm carry a Zacks Rank #1 (Strong Buy), while Magna is a Zacks Rank #2 (Buy) stock.