Following several months of depressed electric vehicle demand, Ford Motor Co.’s alternative energy vehicle sales spiked in February as strong demand for battery electric vehicles and hybrids increased the automaker’s U.S. sales by 10.5%. The Dearborn, Michigan-based automaker’s hybrid vehicle sales jumped by 32% to 12,045 while its SUV sales went up by 22% to 76,403 units.
Ford says the hybrid segment has enjoyed continued growth over the past year with sales expanding faster than the general U.S. auto industry. As with many other legacy automakers, Ford recently announced plans to scale back its ambitious electrification plans. While companies such as General Motors and Ford had plans to electrify most of their lineups over the next couple of decades, consumer demand for battery electric vehicles dragged in late 2023.
High electric vehicle prices coupled with rising interest rates and a high cost of living reduced the number of consumers who were willing to pay premium rates for a battery electric car. The result was slowed demand for EVs and increased numbers of unsold electric vehicles on car lots. In response, Ford and other established automakers said they would rework their electrification plans and focus on developing high-margin fossil fuel cars and hybrids.
Ford cut prices for the award-winning Mach E over the past couple of months and reduced production at its Michigan Rouge Electric Vehicle Center to just a single shift from April 1. However, February proved to be a good month for Ford as hybrid sales surged by 32% compared to the previous month. The automaker is doubling down on hybrid electric vehicles to attract consumers who aren’t completely comfortable with switching to battery electric vehicles (BEVs).
Hybrids allow drivers to use electric vehicle technology without having to completely relearn how to use a different kind of car. They also offer great fuel economy as hybrid drivers can use both fossil fuels and electricity as fuel. Ford’s Maverick hybrid pickup truck was extremely popular among American consumers and accounted for more than onehalf of all hybrids sold last month, at 6,463 units. The Mustang Mach E crossover saw a 64.3% jump in sales while the F-150 pickup truck sales jumped by a whopping 93%.
Unfortunately, despite the increase, hybrids still made up only small part of Ford’s overall February sales. Compared to slightly more than 12,000 hybrids, Ford sold 155,779 gas-powered units last month. Traditional gas-powered cars made up nearly 90% of Ford’s sales. Even though the automaker’s bet on hybrids seems to be paying dividends, the company still has a long way to go before it dethrones internal combustion engine cars.
Electric vehicle manufacturers, such as ElectraMeccanica Vehicles Corp. Ltd. (NASDAQ: SOLO), have a tall order to entice a lot more consumers to take up EVs so that the industry can reach the point of no return regarding its entrenchment.
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