Ford projects utility vehicles to account for 29% of its global sales by end of decade

30 October 2014

Ford projects utility vehicles will account for 29% of its global sales by the end of the decade. Ford utility vehicles—ranging from the compact EcoSport to the eight-seat Expedition—accounted for 23% of brand sales globally in 2013, up from 17% a year earlier.

Utility vehicle sales are expanding rapidly in many of the world’s fastest-growing markets according to a Ford analysis of data from IHS Automotive, which forecasts market information and competitive data on the automotive industry. Worldwide demand for utility vehicles is up 88% since 2008, making SUVs the fastest-growing segment. Utilities now account for 19% of the global automotive market, with the segment expanding at more than three times the rate of the vehicle industry overall.

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In Europe, the utility vehicle segment grew from 9% market share in 2008 to 19% in 2013. Sales of Ford Kuga, known as Escape in North America, increased 33% for the full 2013 sales year in Euro 20 markets, reaching record levels January through September 2014.

To capitalize on the utility segment’s strength in Europe, Ford introduced EcoSport earlier this year, and an all-new 2015 Ford Edge goes on sale there in late 2015. Both Edge and EcoSport are new entries for Ford in Europe.

The story is similar in China, where interest in utility vehicles drove the segment from 7% of industry sales in 2008 to 17% in 2013. The Canadian-built Ford Edge launched in China in January 2011, with three more utilities—Ford Explorer, Kuga and EcoSport—debuting there in 2013.

From January through September 2014, more than 100,000 Kugas and more than 60,000 EcoSports have been sold in China, with significant year-over-year increases. Edge sales there are up 70% over 2013, and sales of Explorer—imported to China from Chicago Assembly Plant—increased approximately 200% over 2013. Overall, more than 1 million Ford brand vehicles are expected to be sold in China this year—an all-time record.

In the United States, baby boomers and millennials—the two largest demographic groups—are choosing utility vehicles. Small utilities are now the largest segment in the US market. A record number of Ford Escapes were sold in 2013, with sales up in 2014 as well. Ford Explorer and Expedition are selling at a pace not seen in nearly a decade.

Ford will reveal its new 2016 Ford Explorer at the Los Angeles Auto Show. The new Ford Explorer goes on sale next year in North America, arriving in time to celebrate 25 years as the best-selling midsize SUV in the United States. Nearly 7 million Explorers have been sold here since the vehicle debuted in 1990 and popularized the SUV.

The innovative 2016 Ford Explorer will reach showrooms with a new look, added capability and additional driver-assist technology.