Ford has announced that will setting up a new joint venture with China's Anhui Zotye Auto to produce affordable electric vehicles for the Chinese market. In addition to producing vehicles, the joint venture will also be creating a service infrastructure and marketing of electric vehicles. Major auto manufacturers partnering with Chinese companies is nothing new. It is one of the major requirements for doing business in auto market in China. The Chinese auto industry itself is decades behind their Western counterparts and in order to quickly catch up in terms of technology, best way is to learn from established companies. Electric vehicles is already a big part of the Chinese auto market. The rapid growth of the middle class and manufacturing prowess has the country establishing a reputation of horrible pollution.
Electrifying the transport industry has been priority for the Chinese government, offering many government sponsored incentives which includes free parking spaces, free license plates and extremely generous government subsidies. The alternative energy vehicle market in China is expected to grow to six million new units sold annually by 2025, with two thirds of them being electric. Zotye Auto was one of the first Chinese auto manufacturer to produce an all-electric vehicle for the Chinese market. To date, the company has sold over 16,000 all electric vehicles through July of this year, a growth of 56 per cent year over year. They currently hold roughly 7 per cent of the overall market in the nation. The partnership with Ford will a be a 50-50 joint venture and will be Ford's third in China. They currently have partnerships with Changan Ford and Jianling Motor Corp for passenger and commercial vehicles respectively. Ford currently has plans to to make roughly 70 per cent of their line up in China to be electric by 2025. Electric vehicles will be the future for China, the world's largest market.