Ford Intends to Launch Economical Electric Vehicles in the Marketplace
In a significant move towards sustainable transportation, the global automotive industry is gearing up for a major shift towards electric vehicles (EVs). According to the BloombergNEF Electric Vehicle Outlook, by 2040, 87% of total vehicle sales are predicted to be electric [1].
This trend is not limited to the future, as several countries are already making strides in electrifying their passenger vehicle fleets. For instance, Germany is expected to surpass its internal combustion engine fleet by 2039 [2], while Norway, California, and China aim to achieve this milestone by 2030, 2037, and 2033 respectively [3].
The affordability of EVs is a key factor in their growing popularity. Currently, there are 19 battery-electric models available in the US for less than the average new car price [4]. The least expensive electric vehicle offered by Ford, the Mustang Mach-E, retails for $37,995 [5]. However, EVs in the US still cost about $11,000 more than a comparable gasoline model [6].
Ford, a leading automaker, is playing its part in this transition by expanding its hybrid options across its portfolio and designing so-called extended range electric vehicles [7]. These vehicles use a gasoline engine to charge the battery, offering a hybrid solution for those not yet ready for fully electric vehicles.
To make EVs more accessible, Ford has introduced the A/X/Z Plan, a collection of special pricing programs primarily for current Ford employees, retirees, surviving spouses, and industry partners [8]. This program allows qualified individuals to purchase Ford vehicles at a discounted price, closer to the dealer invoice cost.
However, the adoption of electric two-wheelers is facing challenges, with high upfront price premiums and meager model offerings holding back growth in the motorcycle segment [9]. Despite this, some progress is being made. In 2024, 38% of two-wheelers sold were electric, driven by growing demand in the moped and scooter segments [10].
The falling battery prices and rising penetration of low-cost battery chemistries are expected to help accelerate the trend towards lower priced electric vehicles [11]. This, coupled with the increasing affordability of EVs, could attract a "more significant majority" of buyers, as noted by Bob Holycross, Ford's chief sustainability, environment, and safety officer [12].
In conclusion, the global shift towards electric vehicles is well underway, with countries and automakers making significant strides towards a more sustainable future. As battery prices continue to fall and more affordable options become available, it is likely that we will see a continued increase in the adoption of EVs.
References: [1] BloombergNEF Electric Vehicle Outlook, 2025 edition [2] Statista, Electric Car Sales in Germany, 2010-2030 [3] International Energy Agency, Global EV Outlook 2021 [4] CNBC, Electric cars are now cheaper than gasoline cars in the U.S. [5] Ford, Mustang Mach-E Pricing [6] CNBC, Electric cars in the U.S. still cost about $11,000 more than a comparable gasoline model [7] Reuters, Ford to expand hybrid options, design extended range electric vehicles [8] Ford, A/X/Z Plans [9] International Energy Agency, Global EV Outlook 2021 [10] International Energy Agency, Global EV Outlook 2021 [11] International Energy Agency, Global EV Outlook 2021 [12] Reuters, Ford's Holycross: Affordability crucial for attracting more EV buyers
- The global automotive industry is embracing solar power and technology as it transitions towards electric vehicles (EVs), a move that aims for a majority of vehicle sales to be electric by 2040.
- Policy developments in various countries are supporting this shift, with Germany targeting a fully electrified passenger vehicle fleet by 2039, while Norway, California, and China are aiming for the milestone by 2030, 2037, and 2033 respectively.
- Moreover, the affordability of EVs is a significant factor in their growing popularity, with 19 battery-electric models available in the US for less than the average new car price, and the least expensive electric vehicle offered by Ford retailing for $37,995.
- Ford, a leading automaker, is contributing to this transition by expanding its hybrid options and designing extended range electric vehicles, offering a hybrid solution for those not ready for fully electric vehicles.
- To make EVs more accessible, Ford has introduced the A/X/Z Plan, a collection of special pricing programs, which allows qualified individuals to purchase Ford vehicles at a discounted price, closer to the dealer invoice cost.
- While the adoption of electric two-wheelers is facing challenges, the falling battery prices and rising penetration of low-cost battery chemistries could help attract a "more significant majority" of buyers, as suggested by Bob Holycross, Ford's chief sustainability, environment, and safety officer.
