Ford electric vehicle sales triple on strong Mustang Mach-E sales

Ford released its September 2022 sales results on Tuesday as the U.S. automaker continues to see growing demand for its electric vehicles. Despite ongoing supply issues, Ford’s electric vehicle sales tripled (+197.3%) from a year ago, gaining 3.1% market share as the automaker seeks to reach its target of 600,000 units by the end of 2023.

Growing demand for Ford electric vehicles boosts a disappointing September

Despite an overall decline in sales of nearly 9% compared to September 2021, Ford’s electric vehicles remain a flagship product. Ford’s electric vehicle sales were up 197.3% year-over-year and the company sold 4,691 total electric vehicles in September.

Strong interest in Ford’s new electric vehicles helped offset an otherwise gloomy sales release in September. The automaker continues – like most industry players – to struggle with supply chain issues and parts shortages.

Ford claims that “for the sixth consecutive month, more than 50% of Ford’s retail sales came from orders placed previously.”

A key thing to note is that Ford saw a significant 18.3% decline in truck sales, the company’s crown jewel and previous top-selling segment. Since its launch in June, Ford has sold 8,760 F-150 Lightnings, the company’s electric pickup.

Perhaps, more importantly, the all-electric Mustang Mach-E continues to see strong demand despite being on the market for nearly three years. Ford sold 2,324 Mach-Es in September, a 47% increase over last year, bringing the total to 28,089 in 2022.

Ford’s third and latest electric vehicle, the E-Transit van that customers began receiving earlier this year, dominates its market with more than 90% market share. The E-Transit remained the best-selling electric van through September, with 4,387 sales since its release.

Andrew Frick, vice president of sales for Ford Blue, talks about the company’s success with electric vehicles so far, saying:

Ford continued to see high-demand vehicles run at record rates in September,
while developing leadership in electric trucks and vans and expanding our global truck lineup
leadership.

Ford gained 3.1% market share of electric vehicles in September, reaching 7% of the total. However, with 41,236 EV sales year-to-date and ongoing supply chain issues, how will Ford hit 600,000 turnovers by the end of next year?

Ford Electric Vehicle Range Source: Ford

How Ford plans to increase production of electric vehicles

Ford has big plans to increase production of its electric vehicles and get more electric vehicles into the hands of customers over the next few years. However, reaching its goal of reaching an execution rate of 600,000 by the end of 2023 and then 2 million by 2026 will require significant expansion.

The demand is already there, as Frick explains in Ford’s September Sales:

Demand remains strong and new retail orders are growing rapidly.

The Ford F-150 Lightning runs in just eight days, while the Mach-E runs in 10 days.

Ford says retail orders for 2023 models are up 244% over 2022 models so far, signaling the company has buyers. Yet, like many automakers, the key to meeting this demand will be securing supply.

The automaker said in July that it had blocked 60 GWh of battery supply to meet its target operating rate of 600,000, also confirming that it would add iron phosphate cells (LFPs) to reduce its dependence on with regard to rare minerals such as nickel. Ford says the transition could result in 10-15% material savings.

As for reaching 2 million by 2026, Ford claims to have 70% of the required battery cell capacity. In September, Ford set new requirements for dealerships to onboard its network for an electric vehicle push as the automaker seeks to gain more market share and catch up with Tesla in electric vehicle sales. However, given that Tesla just sold a record 343,000 EVs in the third quarter, it’s likely going to be an uphill battle.

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