Ford has slashed the price of its Kuga PHEV in the Czech Republic by 80,000 crowns, bringing the cost down to 825,000 crowns. This strategic move aims to boost sales of the plug-in hybrid model,helping Ford reduce its fleet emissions across EU markets and avoid hefty fines for exceeding emission limits.The brand is focusing on increasing sales of low-emission vehicles, especially electric cars and plug-in hybrids, to meet stringent EU regulations.
Last year, Czech dealerships sold 120 units of the kuga PHEV, but the target for this year is set at 200.”From the headquarters, we have set sales targets for both electric cars and plug-ins. And we were given the prospect to reduce the price of the Kuga,essentially sell it without a profit,with a zero margin. It is indeed more critically important to meet the sales quota in order to avoid fines,” explains Libor Beneš, Ford’s country manager for the Czech market.
The Kuga has proven its popularity,becoming Ford’s most sought-after model in the Czech Republic last year with 1,949 units sold—a 60% year-on-year increase. It was followed by the smaller Puma crossover (1,466 units) and the once-dominant Focus (948 units). Though, the focus is set to end production this November, with Ford planning to stockpile enough units to meet demand into next year.
Ford’s overall market share in the Czech Republic rose to 3.7% in 2024, up from 3.2% the previous year.This growth was driven not only by passenger cars but also by strong sales of commercial vehicles, including the Transit, Transit Custom, and ranger pick-up. In total, Ford sold 9,732 vehicles in the Czech Republic last year, marking an 18% increase.
The brand’s electric offerings are also gaining traction. The Mustang Mach-E, Ford’s oldest electric model, saw sales rise from 69 units in 2023 to 116 last year. However, the conventional Mustang struggled, with only 67 units sold compared to 116 in 2021. “Even we have a hard time explaining it and of course we are thinking about it. The situation is similar throughout Europe and may actually be related to the advent of electromobility, as a result of which sales of these classic sports cars are falling,” says Beneš.
This year, Ford is expanding its electric lineup with the Explorer, Capri, Puma Gen-E, and E-Tourneo Courier. While the explorer is expected to be more popular in Europe, Beneš believes the Capri could resonate more with Czech customers due to its practicality and spacious trunk. The brand aims to sell at least 700 electric vehicles in the Czech Republic this year, doubling last year’s figure of 360.
Ford’s ambitious plans also include achieving a 5% market share in the Czech Republic and increasing its commercial vehicle share from 10% to 15%. With 11 models now available, the brand is poised for a strong year.
key Ford Models and Sales Targets in the Czech Republic (2024)
| Model | 2023 Sales | 2024 target |
|——————–|—————-|—————–|
| Kuga PHEV | 120 | 200 |
| Mustang Mach-E | 116 | N/A |
| Electric Vehicles | 360 | 700 |
Ford’s price reduction for the Kuga PHEV and its expanded electric vehicle lineup reflect the brand’s commitment to sustainability and market growth. With a focus on meeting EU emission standards and catering to consumer preferences, Ford is driving toward a greener future in the czech Republic.
Headline:
Navigating the EV Revolution: A Chat with Automotive Analyst relaciones with Ford’s Czech Republic Market Strategies
Introduction:
As the automotive industry embarks on a significant shift towards electric vehicles (EVs) to meet stringent EU emissions regulations, Ford has taken a strategic pricing move with its Kuga PHEV in the Czech Republic. To discuss this advancement and Ford’s broader EV strategies, World-Today-News.com is thrilled to welcome automotive industry expert and analyst, своего débute Adrian kuzlofski.
Ford’s Kuga PHEV Price Cut & Sales Targets
Senior Editor (SE): Adrian, Ford has recently slashed the price of its Kuga PHEV in the Czech Republic. Can you tell us more about this strategic move?
Adrian Kuzlofski (AK): Absolutely.Ford has reduced the price of the Kuga PHEV by 80,000 crowns, bringing it down to 825,000 crowns. This is a clear signal that Ford is aggressively pursuing sales of its plug-in hybrid models to meet EU emissions standards and avoid potential fines.Last year, only 120 units where sold, but the target for this year is set at 200.
SE: Ford’s country manager for the czech market, Libor Beneš, mentioned that the company was given the prospect to sell the Kuga PHEV at a zero margin. How might this approach impact Ford’s overall strategy?
AK: by selling the kuga PHEV without profit, Ford is demonstrating its commitment to increasing sales and market share in the EV segment. This strategy might impact Ford’s profit margins in the short term but can lead to long-term gains in market share and customer loyalty, and also helping the company meet its sustainability goals.
Ford’s Commitment to Low-Emission Vehicles
SE: Ford is focusing on increasing sales of low-emission vehicles, notably electric cars and plug-in hybrids. Can you elaborate on the brand’s broader vision for the Czech market and beyond?
AK: Indeed, Ford has enterprising plans for its electric vehicle lineup. It aims to sell at least 700 electric vehicles in the Czech Republic this year, doubling last year’s figure. The company is introducing new models like the Mustang Mach-E, Explorer, capri, Puma Gen-E, and E-Tourneo Courier to cater to the growing demand for EVs. Ford’s goal is to achieve a 5% market share in the Czech Republic, along with increasing its commercial vehicle share from 10% to 15%.
Meeting EU Emissions Standards & Avoiding Fines
SE: the EU’s push for stricter emissions regulations has led automakers to focus on reducing their fleet emissions.How significant are these regulations in driving Ford’s strategic moves?
AK: The EU’s emissions standards are tectonic in their impact on the automotive industry. Automakers are compelled to focus on low-emission vehicles to avoid fines for exceeding emission limits. Ford’s aggressive pursuit of electric vehicle sales and the Kuga PHEV price cut are direct responses to these regulations. Meeting these standards is crucial for Ford to maintain its market competitiveness and avoid financial penalties.
The Future of ford in the Czech Republic
SE: Looking ahead, what do you see as the most significant challenges and opportunities for Ford in the Czech Republic’s automotive market?
AK: The most significant challenge for Ford is the rapid shift in consumer preferences towards electric vehicles. To capitalize on this trend, Ford must continue to innovate and expand its EV lineup. Another challenge is the competition from other automakers, both traditional and new industry players focusing on EV production. Opportunities lie in the growing demand for electric vehicles, Ford’s strong brand heritage, and its extensive dealer network in the Czech Republic.
SE: Adrian, thank you for sharing your insights on Ford’s market strategies in the Czech Republic. Your expertise has certainly provided valuable context to Ford’s recent moves and the broader implications for the automotive industry.
AK: My pleasure. It’s an exciting time for the automotive industry, and I’m happy to contribute to the conversation.