Ford Mustang Mach-E is America’s second-best-selling electric SUV [Update]

Update: ‘Ford Mustang Mach-E demand’ section updated.

The Ford Mustang Mach-E went on sale in the U.S. at the end of December 2020. In the very first year of sales, it has become one of the country’s most popular electric SUVs. While Tesla Model Y firmly holds on to pole position, the Blue Oval’s Mustang electric SUV is the second-best-selling e-SUV in the U.S. market today.

Ford is witnessing an unprecedented demand for the Mustang Mach-E at home. The company was able to deliver just three units in December 2020, but with the production ramp-up, it’s delivering 2,000+ units a month consistently. In 2021, the company sold 27,140 units of the Mustang electric SUV in the U.S. despite the odds.

Customers are literally scooping up every Mustang Mach-E when it hits the dealer lot. In its July 2021 U.S. sales report, Ford said Mustang Mach-E units stay at dealer showrooms for just 12 days. The company hasn’t disclosed the margin on the electric SUV, but it has confirmed that the Mustang electric SUV is profitable already.

Mach-E is profitable, contribution margin-positive, and profitable on the bottom line today.

John Lawler, CFO, Ford (Ford Q2 2021 Earnings Call)

Video Source: YouTube/Ford Motor Company

Ford Mustang Mach-E demand

Ford says that the demand for its first high-volume EV models, which includes the upcoming F-150 Lightning and E-Transit, has exceeded its most optimistic projections. The company is trying to expand production.

We are now working around the clock to break constraints and increasing our manufacturing capacity for these red-hot new battery electric vehicles. We’re working with LG Chem, SK Innovation to increase our annual battery capacity for the Mustang Mach-E by 70%, and we’re taking similar actions ahead of the launches of the E-Transit later this year and the F-150 Lightning early next year.

James Farley Jr., President and CEO, Ford, in 2021

The Mach-E is a hit with customers worldwide, James Farley Jr., President and CEO, Ford, said during the company’s Q3 2021 earnings conference call on October 27, 2021. Over 90% of owners say they would recommend it to other customers, he added. The global annual demand could reach approximately 200,000 units a year, Farley Jr. said, with North America, Europe, and China as the main markets.

An interesting fact to note is that Ford is manufacturing almost as many Mustang Mach-Es as Mustangs in North America now. In 2021, the company made 63,683 units of the Mustang and 65,590 units of the Mustang Mach-E, only from the Cuautitlán plant in Mexico, which Ford is converting as the electric SUV’s global production base. It’s safe to assume that the supply chain issues are holding back the true potential, and once issues resolve, the electric SUV would overtake the gas-powered muscle car. Since October 18, 2021, the Changan-Ford joint venture company is also manufacturing the Mach-E, in Chonqing, China. Including the Chinese production, the Mustang Mach-E has probably already surpassed the Mustang in terms of production.

On December 7, 2021, Farley Jr. told CNBC‘s Jim Cramer that the demand for the Mustang Mach-E is “about twice” the production rate. The company desires to increase EV production capacity to 600,000 units in the next 24 months, Farley added. The issue with the Mustang Mach-E is in the supply chain, and we’re not referring to just semiconductor chips. There’s a shortage of batteries, too, but Farley Jr. said that Ford could source batteries from China to overcome that challenge.

MonthU.S. Ford Mustang Mach-E Sales
January 2021238
February 20213,739
March 20212,637
April 20211,951
May 20211,945
June 20212,465
July 20212,854
August 20211,448
September 20211,578
October 20212,848
November 20213,088
December 20212,349
Total27,140
Ford Mustang Mach-E sales in the U.S. (Source: Ford)

The Ford Mustang Mach-E accelerates from 0-60 mph as quickly as in 3.5 seconds, and when driven efficiently, delivers a range of up to 305 miles (EPA). Prices of the Tesla Model Y rival in the U.S. start at USD 43,895.

Featured Image Source: Ford