Ford’s EV sales fell 11% in January amid slower-than-expected demand. The Mustang Mach-E led the downfall, with 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, down 11% compared to January 2023. Meanwhile, Ford’s hybrids and ICE vehicle sales were up 42.7% and 2.6%, respectively.
Mustang Mach-E sales fell 50.7% to 1,295 from 2,626 last year. Meanwhile, sales of Ford’s electric pickup, the F-150 Lightning, were nearly flat (-0.3%) at 2,258.
The news comes after Ford announced it was cutting F-150 Lightning production earlier this month. Ford said the output cut was to “achieve the optimal balance of production, sales growth and profitability.”
According to Ford, about 1,400 employees would be impacted at its Rouge EV plant as it shifted to one shift. The changes will go into effect April 1.
CFO John Lawler explained that Ford has “taken out some Mustang Mach-E production” on the company’s earnings call in October.
Despite the slowdown, Ford’s CEO Jim Farley still sees “a bright future” with its electric vehicles. Ford’s leader added, “Especially with our upcoming digitally advanced EVs and access to Tesla’s charging network beginning this quarter.”
Earlier this week, Farley announced on social media that Ford will provide free adaptors for EV owners to access Tesla’s superchargers “starting soon.”
Ford hopes that expanding charging access and its next-gen EVs, including a full-size electric pickup and three-row SUV, will help spark demand.
Top comment by Pete P
They are still priced way too high and dealers don't want to discount them even though many have been sitting on their lots for months on end. Some of them can't move on from 2022 when they were charging a $10K premium.
Until then, Ford will lean into its hybrids as a “bridge” to its new electric models. With 4,674 all-electric cars sold in January, Ford’s EV sales accounted for just 3% of its total 152,617 vehicles sold last month.
Electrek’s Take
While Ford is pulling back amid “slower than expected” demand for EVs, rivals like Hyundai, Kia, Volvo, and others are preparing to ramp output.
Volvo expects its smallest and cheapest EV, the EX30, starting around $35,000, to 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.
Ford is facing new competition this year with Tesla’s Cybertruck and GM’s Chevy Silverado and GMC Sierra Denali EVs rolling out. While Ford’s EVs accounted for 3% of total vehicle sales, many rivals are already achieving double-digit or 100% electric vehicle share.
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