Ford’s Hybrid Vehicles Propel Sales Growth in January, Offsetting Decline in EVs

Automaker Sees 4.3% Increase in Sales, Fueled by Strong Demand for Hybrid Models

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Ford Motor started the new year on a positive note, reporting a 4.3% increase in sales for January compared to the same period in 2023. The boost was primarily attributed to a remarkable 43% surge in hybrid vehicle sales, compensating for an 11% decline in all-electric cars and trucks.

The Detroit automaker disclosed that it sold a total of 152,617 vehicles in January, with the substantial growth in hybrid sales reflecting Ford’s strategic emphasis on this technology. Hybrid vehicles have seen increased demand, providing a counterbalance to the slower adoption of all-electric models like the F-150 Lightning pickup and the Mustang Mach-E crossover.

While Ford’s all-electric Mach-E experienced a 51% drop in sales at the start of the year, the F-150 Lightning showed a more modest decline of less than half a percent. To address the demand for electric vehicles, Ford is ramping up production of its E-Transit electric van, which saw sales increase to over 1,100 units in January compared to less than 400 a year ago.

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Despite the concerted effort on hybrids, traditional internal combustion engine vehicles still dominated Ford’s sales, constituting 90% of total sales in January. Hybrid vehicles, led by the Ford Maverick pickup, represented 7.3% of sales, while electric vehicles accounted for approximately 3%, with fewer than 5,000 units sold.

Sales of Ford’s highly profitable F-Series pickups experienced a decline of about 12% in January, amounting to roughly 48,700 units. The company is set to release its fourth-quarter and year-end earnings on Tuesday.

In contrast to Ford, its crosstown rival General Motors (GM) recently released robust results and provided positive 2024 guidance that exceeded Wall Street’s expectations. Following GM’s earnings report, the company’s stock witnessed a notable increase, rising more than 7% since the beginning of the year. However, Ford’s stock experienced a modest decline of about 1% in 2024.

As automakers navigate the evolving landscape of electric and hybrid vehicles, Ford’s focus on a diverse range of propulsion technologies aims to capture a broader market share and adapt to shifting consumer preferences.