US carmaker Ford has posted a drop in EV sales and a rise in demand for hybrid vehicles, in line with consumer trends.

The EV sector is weathering a slowdown in demand amid higher inflation and concerns about charging infrastructure. 

Indeed, Ford said earlier this month it would expand capacity at its Oakville assembly complex in Ontario, Canada, to start producing F-Series Super Duty pick-ups from 2026. The same facility was initially going to be retooled for EV production, which has been delayed from 2025 to 2027.

The Michigan-headquartered group reiterates its expectations for a full-year $5 billion loss in the EV segment, although it cut costs by $400 million in the second quarter.

Its forecast of $10-12 billion full-year adjusted earnings also remains unchanged, Kallanish learns.

In the quarter to 30 June, revenue rose by 6% to $47.8 billion, mostly driven by sales of internal combustion engine (ICE) vehicles. Net income remained flat at $1.8 billion due to higher costs across the ICE and software segments.

Hybrid vehicle sales were up by a third, accounting for nearly 9% of the company’s global mix.

EV sales were 23% lower than last year at 26,000 units, pushing revenue down 37% to $1.1 billion. Losses in the segment widened by 63% to $1.1 billion due to pricing pressure and lower wholesales. 

Shares dropped nearly 13% in premarket trading on Thursday. Analysts at RBC Capital Markets say investors were hoping for a profit guidance raise following the uptick in sales and lower EV costs.