As the bells toll for 2025, the automotive landscape in China reflects a myriad of shifts that occurred over the preceding year, 2024. Recent statistics released by the China Passenger Car Association reveal that luxury car sales experienced a noticeable downturn, with retail sales hitting 260,000 units in November—marking a 4% decline compared to the previous year, albeit a 26% increase compared to OctoberThe luxury segment's market share of 10.9% indicates a worrisome drop of 2.2% year-on-year, signaling a significant retraction in the traditional luxury vehicle market.

In the ever-competitive realm of the automotive industry, companies must concurrently focus on the immediate consumer appetite while nurturing long-term brand valuePrice wars may momentarily allure potential buyers, but this approach can adversely affect brand equity and profit margins in the long haulTherefore, it is crucial for car manufacturers to navigate these turbulent waters with a forward-thinking mindset, balancing short-term gains against sustainable growth.

One brand that exemplifies this strategic alignment is Lincoln, an esteemed name in the luxury automotive sector with a legacy spanning over a century

Known for its distinctive "Navigator Spirit," Lincoln has grounded itself firmly in the Chinese market by leveraging its profound understanding of local consumer needs, allowing for stable, incremental growth in its market share.

Maintaining corporate steadiness is paramount in the face of rapid market fluctuationsLincoln emphasizes that creating long-lasting value is the bedrock of sustainable developmentCompanies must pursue health and quality over mere volume, intending to weather industry cycles adeptly.

As 2025 commences, Lincoln China has embarked on a significant strategic shiftStarting this year, Lincoln's financial operations will be integrated into Ford China, streamlining internal financial processes to enhance operational efficiencyThis maneuver indicates Lincoln’s dedication to fortifying its foundation for future endeavors without losing its distinct identity.

Despite these internal changes, Lincoln China's operational framework remains intact

• Why H-Shares of State Banks Face Scrutiny
• The Stock Market Celebration is Coming to an End
• Rate Cuts on Hold Amid Strong Economic Data
• Lincoln China: 2024 Initiatives and 2025 Outlook
• Carbon Neutrality: An ESG Investment Case

The division will persist as a wholly-owned subsidiary of Ford Motor Company, functioning independently within the Chinese marketThis decision serves to quell rampant speculation regarding Lincoln's potential merger with Ford or an exit from China, instead reinforcing the company's long-term ambitions in the region.

Lincoln’s reputation in the automotive world is synonymous with "heritage luxury and composed elegance." Since its inception, the brand's mission has been to produce top-tier vehiclesLincoln's entry into the Chinese market a decade ago was marked by a commitment to this mission, as the brand sought to establish meaningful connections with discerning customers.

The journey of the Lincoln brand showcases pioneering achievements across technology, design, and product innovationNotably, Lincoln was at the forefront of introducing luxury seating, electric seat functionality, and innovative vehicle door designs, setting benchmarks for the automotive industry.

In just three years after entering the Chinese market, Lincoln delivered on its promise to introduce five model offerings

By the fifth year of its presence in China, Lincoln unveiled its domestically produced vehicles, with the Aviator and Corsair making their debuts within four months of each other—demonstrating remarkable agility in production and launch timelines.

Lincoln’s three-year trajectory also recorded a rapid increase in customer ownership, skyrocketing to 100,000 new owners and establishing itself as one of the fastest-growing luxury brandsBy the end of its ninth year in the market, Lincoln's total ownership reached an impressive half a million vehiclesAlthough sales are important, Lincoln prioritizes quality over sheer numbers, emphasizing that value holds greater significance than mere volume.

Lincoln China's brand image has become increasingly pronounced, achieving notable recognition in consumer sentiment studiesAccording to GBHS consumer research, three keywords—"luxurious," "high-quality," and "prestigious"—have consistently ranked high, reinforcing Lincoln's standing among second-tier luxury brands

Throughout the first three quarters of 2024, Lincoln maintained a steady growth in brand favorability, a testament to its effective marketing strategies.

By adhering to a philosophy of "value marketing," Lincoln China has gained a firm foothold in the domestic luxury car market, not only achieving steady sales growth but also gradually increasing its market shareStatistical analyses show that Lincoln's market share improved from 2% at the beginning of 2024 to 2.6%—a commendable 30% uptick.

Responding aptly to market dynamics is also crucialWith DrJia Mingdi stepping into the role of president of Lincoln China in April 2024, the band embarked on a transformative journeyWithin a span of just eight months, DrJia led Lincoln through foundational work and internal improvements, realigning initiatives across product offerings, marketing, and customer service.

Lincoln’s approach to "value marketing" focuses on placing users at the center of its strategy, ensuring that customers receive unparalleled care and attention

The traditional business units have been restructured into five modules, emphasizing product operations, customer growth, customer operations, customer development, and service/channel development.

Moreover, Lincoln China has sought to enhance customer experiences by integrating intelligent and refined service offeringsThe brand is committed to establishing robust value propositions by curating unique designs that deliver emotional dividends to users, transforming offline experiences into a cohesive and luxurious journey that extends online.

Currently, Lincoln China boasts a distribution network of 176 outletsThe future will see further integration with Ford’s existing dealer facilities, allowing Lincoln experiences to be showcased within 48 selected Ford dealerships.

In a bid to refine operating efficiency, Lincoln plans to close several underperforming 4S stores, scaling back its total number of dealerships from 150 to 115 while alleviating burdens on dealers