Ford’s electric vehicle (EV) sales saw an 11% decline in January, a result of slower-than-expected demand. The Mustang Mach-E led the decline in sales, slipping 50% year-over-year.
Ford’s EV sales fell in January as hybrids carried growth
Ford sold 4,674 electric vehicles last month, marking an 11% decline compared to January 2023. In contrast, Ford’s hybrid and internal combustion engine (ICE) sales saw an increase of 42.7% and 2.6%, respectively.
Notably, sales of the Mustang Mach-E plummeted by 50.7% to 1,295 units from 2,626 the previous year. Meanwhile, sales of Ford’s electric pickup, the F-150 Lightning, remained nearly unchanged, with a decrease of just 0.3% at 2,258 units.
This news follows Ford’s recent announcement of a reduction in F-150 Lightning production, aimed at achieving the optimal balance between production, sales growth, and profitability.
As a result of these changes, about 1,400 employees at Ford’s Rouge EV plant are expected to be impacted as the company shifts to one shift, with the changes scheduled to take effect on April 1.
During the company’s earnings call in October, CFO John Lawler mentioned that Ford had reduced Mustang Mach-E production.
Ford is hopeful that expanding charging access and its next-gen EVs, including a full-size electric pickup and three-row SUV, will help ignite demand. In the meantime, Ford will continue to rely on its hybrids as a transition to its new electric models.
With Ford’s 4,674 all-electric cars sold in January representing just 3% of its total 152,617 vehicles sold last month, the company will need to strategize to increase its EV market share.
Electrek’s Take
While Ford is experiencing a slowdown in EV demand, competitors like Hyundai, Kia, Volvo, and others are gearing up to increase production. Volvo, for instance, anticipates that its smallest and most affordable EV, the EX30, priced at around $35,000, will be a game changer. Meanwhile, Kia’s three-row electric SUV, the EV9, outsold the Mustang Mach-E with over 1,400 units sold last month in the US.
Amidst new competition from Tesla’s Cybertruck and GM’s Chevy Silverado and GMC Sierra Denali EVs, Ford will need to strategize to maintain its market share, especially with many rivals already achieving double-digit or 100% electric vehicle market share.
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