In a promising start to the year, Ford (NYSE:F) has reported robust sales in the United States for January, surpassing its competitor Toyota (NYSE:TM), the previous year’s sales leader. Despite this positive momentum, there was a setback in electric vehicle (EV) sales.
Ford revealed a 4.3% increase in January US sales, reaching 152,617 vehicles, contributing to a 13.7% market share, up by 0.3% compared to the previous year. Toyota, on the other hand, experienced a 23.3% growth in US sales but sold 143,241 vehicles in January. Toyota has grappled with chip shortages and inventory challenges since 2023, working to rebuild its supply chain.
The impressive results for Ford were attributed to record sales of its Maverick compact pickup (12,443 units) and strong performance in trucks and vans, exceeding 80,000 vehicles. Ford estimated that it sold 15,000 more trucks and vans than its closest rival, General Motors (NYSE:GM), although GM does not disclose monthly sales data.
While Ford’s hybrid sales surged by 42.7%, totaling 11,157 units compared to the previous year, EV sales faced a decline. All-electric sales dropped by 10.9% year over year to 4,674 units in January. Several factors, including the expiration of federal EV tax credits for the Mustang Mach-E, adverse weather conditions, range concerns, and higher interest rates, likely impacted EV sales at the beginning of the year.
Ford CEO Jim Farley addressed concerns about the EV landscape in mid-January, emphasizing the importance of pricing in driving demand. He expressed that their electric vehicle (EV) sales are increasing, but it indicates that mainstream customers are unwilling to pay the same premiums as early adopters, emphasizing the need for lower prices.
Despite challenges in the EV sector, Farley expressed optimism about hybrid sales, highlighting Ford’s position as the second-largest seller of hybrids in the US after Toyota. The availability of truck options, such as the F-150 with gas, hybrid, or EV powertrains, contributed to the company’s success in the hybrid market.
Investors are eagerly awaiting more insights into Ford’s EV strategy and the outlook for 2024 when the company reports results next Tuesday. Farley anticipates 2024 to be a significant year for Ford, emphasizing the resolution of labor issues and the launch of six new products, along with a refreshed lineup of Broncos and Mavericks.
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Author Faith Yakubu 
