by Impact of the Expiration of Tax Incentives
October became one of the most analyzed months for the automotive industry. Following the expiration of federal electric vehicle tax credits on September 31st, manufacturers are closely monitoring buyer behavior, who have lost financial incentives.
President Trump’s decision to terminate the $7,500 credit for purchasing electric vehicles caused a short-term surge in the third quarter, as buyers rushed to close deals before the deadline.
For Ford, October showed a mixed picture: total sales increased by 1.6%, but sales of electric models sharply fell by almost 25% – to 4,709 vehicles compared to 6,264 a year ago.
More Details on Electric Vehicle Sales
Mustang Mach-E fell by 12.3% to 2,906 units, although its sales for the year have increased by 15% and stand at 44,868 units. The F-150 Lightning, whose production has been “indefinitely” suspended due to demand reassessment, fell by 17.2% – from 1,863 to 1,543 sales in October.
The fully electric E-Transit van showed the steepest decline – down 76% compared to last year, to just 260 units in October.
Hybrid and Internal Combustion Engine Model Sales
Hybrid sales softened, declining by 4% to 17,498 units, although year-to-date they have increased by almost 20%. Among internal combustion engine and hybrid models, several hits helped support Ford’s overall figures.
Bronco grew by 14.4% to 11,250 units, while the Ranger pickup jumped 48% to 7,741 deliveries. Explorer and Expedition showed modest single-digit growth, compensating for losses from the discontinued Edge and the less popular Escape (-16.4%).
The internal combustion engine Mustang was also notable, with its sales increasing by 43% – from 2,688 to 3,845 units, overtaking its electric sibling after months of lagging. However, since the start of the year, sales of this classic model have fallen by 6.4% to 36,663 units.
Ford’s Total Sales and the Lincoln Situation
The Ford brand’s total sales increased by 2.5% to 167,484 vehicles, driven by demand for trucks. F-Series deliveries increased by 0.7% to 67,930 units, and Maverick continued steady growth of 2% to 11,086 sales.
Lincoln had a tough month: total sales fell by 13.4% to 8,100 vehicles, despite the success of the Navigator, which grew by 37.6% to 1,624 deliveries. All other Lincoln models showed double-digit declines. However, year-to-date, the brand remains in positive territory with a 3.6% increase to 83,879 units.
This data underscores how much the market depends on government incentives for electric vehicles. The drop in EV sales after the cancellation of credits may force manufacturers to revise their strategies, focusing on hybrids and traditional models that continue to enjoy stable demand. In the future, automakers will likely have to find new ways to stimulate buyers, especially in the context of regulatory changes.
