Ford’s electric vehicle strategy continues to shift as buyers increasingly opt for the Mustang Mach-E over the traditional Ford Mustang. This marks a significant moment for the automaker, as the electric Mach-E leads the sales of the Mustang lineup for the first time. The rising appeal of electrified options comes amidst changes to Ford’s production and marketing efforts, reflecting broader industry trends toward cleaner energy solutions. Meanwhile, traditional models face declining sales, underlining a pivotal shift in customer preferences.
Why Did Mustang Sales Decline?
Sales data released by Ford highlights that the traditional Ford Mustang sold 44,003 units in 2024, a 9.5% decline from the previous year’s 48,605 units. By contrast, the Mustang Mach-E saw a 26.9% sales increase, rising from 40,771 units in 2023 to 51,745 in 2024. The decline in the traditional Mustang’s sales highlights shifting consumer interest toward sustainable driving technologies rather than relying on legacy muscle cars.
What Boosted Electric Vehicle Sales?
Key initiatives like Ford’s Power Promise program have played a role in driving EV adoption. The program offers complimentary home chargers with installation and access to Ford advisers for EV-related support. Ford extended this program through March 31, 2025, aiming to sustain interest in its electric lineup. Additionally, the automaker’s total EV sales grew by 38% in 2024, reaching 285,291 units, including hybrids and fully electric vehicles. Ford attributed its EV growth to increased consumer interest and its expanded support infrastructure.
In 2024, Ford’s EV sales outpaced competitors like GM and Stellantis, though the company has faced challenges with production costs and some canceled projects. For example, Ford halted plans for a three-row electric SUV and temporarily paused production of its F-150 Lightning model, reflecting recalibrations in its EV strategy. Ford CEO Jim Farley emphasized the importance of reducing production costs to improve profitability, as the company expects to lose $5 billion on its EV segment in 2024.
“The key to improving EV sales is to make them more affordable. Reducing production costs is essential for achieving this goal,” Ford CEO Jim Farley stated.
As early as 2021, Ford had already positioned the Mustang Mach-E as a flagship EV, focusing on its blend of performance and sustainability. However, earlier projections suggested slower adoption rates. The recent surge in sales indicates a considerable turnaround, likely attributed to expanded incentives and a growing EV market. This contrasts with initial EV launches when traditional Mustang models consistently outperformed their electric counterpart.
Ford’s EV strategy reflects a broader push within the automotive industry toward cleaner technologies, but the company faces challenges in maintaining profitability amidst rising production costs. As consumer preferences evolve, Ford’s ability to manage its offerings and costs will be critical. Buyers shifting from traditional to electric models signal a long-term trend favoring sustainability, but it remains unclear how competitive dynamics and economic pressures will shape the industry.
