Ford is going to be focusing on electrification across its lineup in China, with plans to electrify most of its vehicle offerings in the country by 2025, Reuters reports. The long-term plan will begin with the launch of a plug-in hybrid electric sedan called the Mondeo Energi with local partner Changanin China in 2018, and then a fully electric SUV sometime within the next five years, Ford says.
The electric rollout makes sense given the mandate set by the Chinese government to encourage the development and sale of electric vehicles, alongside aggressive targets for vehicle fuel economy and emissions limits, along with subsidies available for automakers who embrace alternative, clean fuel systems.
China announced tighter restrictions on electric vehicles and new-energy cars (the category of vehicles in China that includes plug-in hybrids) in January, but these were designed to discourage startups and other smaller companies from venturing into the market in search of subsidies when they couldn’t deliver actual quality vehicles. The change in practice is actually likely to benefit automakers like Ford, by avoiding a market crowded with low quality entrants that still woo potential customers by undercutting on price.