Ford EV sales fall in January amid demand slowdown

(Reuters) -Ford Motor reported an about 11% fall in January sales of electric vehicles (EV) on Friday, as the industry grapples with shrinking demand for the cars that are typically costlier than their gasoline-powered counterparts.

The Dearborn, Michigan-based automaker sold 4,674 EVs in January, compared with 5,247 units sold during the same period last year.

The EV demand slowdown due to elevated interest rates, which means higher loan payments for buyers, has prompted some automakers to cut production.

Last month, Ford (NYSE:) said it would reduce production of its marquee F-150 Lightning electric pickup truck at its Michigan Rouge EV plant, and increase production of gas-powered Bronco SUVs and Ranger pickups.

High prices of EVs and concerns about the limited range of these cars, especially in rural areas due to lack of charging infrastructure, have fueled sales of hybrid vehicles.

Last year, Chief Executive Officer Jim Farley said the company had plans to quadruple sales of gas-electric hybrids over the next five years.

Ford’s total sales for January were up 4.3% at 152,617 vehicles, helped by a 42.7% jump in hybrid vehicle sales.