Ford and General Motors, the US’s largest carmakers, posted better-than-expected car sales amid a global industry shift to electric vehicles.
Ford, the world’s fourth-largest carmaker by revenue, reported rising sales in the second quarter of 2024. The Detroit, Michigan-based car manufacturer saw a steep surge in electric and hybrid vehicle sales.
The company sold 308,920 trucks in Q2, including pickups and vans. That is up 5% from the same period last year and the best performance since Q2 2019. Ford also sold 23,957 electric vehicles and 53,822 hybrid vehicles, respectively a 61% and 56% annual increase.
The most successful EV models were the Mustang Mach-E and the F-150 Lighting truck. Sales of hybrid vehicles reached an all-time record for the company, which began delivering hybrid cars over 20 years ago.
Ford plans to rely on hybrid models to transition away from fossil fuel cars. Other global giants like Toyota and General Motors use the same strategy, as several reports point to higher demand for hybrid vehicles compared to full-electric.
Overall, Ford increased its year-to-year sales by 1%. General Motors, its closest rival, also saw a similar annual increase at 0.6% or 696,086 total deliveries for the quarter.
Both Ford and General Motors sales exceeded market expectations. Even a slight increase in deliveries is rare for such large companies as production capacity usually already reached its limit.
Surge in electric sales
The steep increase in EV sales mirrors the quarter-on-quarter delivery surge by Tesla, the world’s second-largest EV maker. Sales for the company controlled by Elon Musk exceeded market expectations at 493,956, roughly 57,000 more than the January-March period.
Most car companies are reporting better-than-expected EV sales in defiance of recent market trends. The aforementioned reports pointed to a lack of proper infrastructure and slow charging times as reasons for the relatively low popularity of electric cars.
But as technology improves, carmakers increase supply, and governments offer subsidies, EV demand is set to steadily rise in the future.
Tesla, Ford, and most American and European carmakers worry about increasing competition in the EV sector strangling supply before demand can balance it. In particular, competition from Chinese firms could overflow Western markets with cheap EVs.
China has heavily subsidized its EV industry, giving birth to dozens of promising start-ups including BYD, currently the world’s largest EV maker. In response, the United States and the European Union imposed sweeping tariffs on Chinese electric vehicles.
The global car industry is undergoing a sensational shift, and traditional firms are eager to see who will survive it.
