Lincoln MKZ displayed at the Beijing auto show in April Photo: CFP

US premium auto brand Lincoln, which is owned by Ford Motor Co, officially returned to China recently with two new models designed for the market.

The brand launched two new models, mid-size sedan Lincoln MKZ and a small SUV model MKC, on October 23 in the Chinese market.

So far, the models sold in China are imported, but the company is weighing the possibilities of local production in China, media recently reported, citing Ford Executive Vice President Joe Hinrichs.

Ford has been trying to rejuvenate the Lincoln brand by investing more than $5 billion over the next five years, media reported. The company has set a target to boost its annual sales to 300,000 units in 2020.

Lincoln's sales have far lagged behind other premium auto makers. In 2013, the brand only saw sales of over 81,000 units, which is rather small compared with German rivals like Audi, which sold over 1.57 million units in 2013. 

The starting price of the Lincoln MKZ is 315,800 yuan ($51,644) and that of the MKC SUV is 339,800 yuan, which analysts say are already appealing enough for imported vehicles.

Eyeing further development in China, the company is expected to roll out another three models to the market by 2016. Two SUV models and a sedan are expected, the company announced in April.

Revival hopes

The Lincoln brand enjoys a history of nearly 100 years and once served as the US president's ride. However, the prestigious brand's road in China has been bumpy.

Lincoln first entered China in 2005, but it left soon in 2008, mainly due to sluggish sales caused by an unattractive product portfolio. For most Chinese consumers, Lincoln is still the synonym for concierge limos used at ceremonies or weddings.

However, experts noted that the brand may still have a chance in China, as the premium segment is still growing at over 30 percent year-on-year at present.

"The timing is not bad. With its appealing prices and imported offerings, Lincoln will attract some Chinese consumers," Zhang Yu, managing director at consultancy Automotive Foresight (Shanghai) Co, told the Global Times on Monday.

Zhang believes that with prices further lowered by the possibility of local production, the brand could gain a share in the premium segment.

Wu Shuocheng, a senior analyst at Menutor Consulting Shanghai Co, noted that it is at a crucial stage for Lincoln at present, as the brand has just re-entered China.

"The right product with the right promotion could make a successful brand. The first impression is very important," Wu said, adding "The brand should have a clear selling point."

On Thursday, the company opened its first three dealerships in Beijing, Shanghai and Hangzhou. The company is planning to open a total of eight dealers this year and by 2016, its dealership network will be expanded to 60, the company said in a press release sent to the Global Times earlier this year.

Fierce competition

But it is not a game in which Lincoln stands to gain much. The premium sector has seen many new players in the past two years, such as Volvo, Jaguar Land Rover and Infiniti, to name just a few, which all have started local production recently.

The three German majors, Audi, BMW and Mercedes-Benz, which account for around 70 percent of the segment, are also rolling out new models and lowering prices in order to consolidate their leading position in the world's largest auto market.

"The premium segment will continue to grow, but rankings are not likely to change soon," said Zhang, noting that the German brands will continue to dominate the segment.