Much ado has been made about the Inflation Reduction Act of 2022 and the impact it will have on the electric vehicle market, as well as EV battery production and charging infrastructure. However, most of that attention has revolved around consumer EV credits and how they’re being overhauled from the prior $7,500 tax credit, and not on the commercial side of the business. But as Ford CEO Jim Farley pointed out while speaking on the automaker’s Q3 earnings call recently, Ford Pro EV customers figure to benefit greatly from the new bill, too.
“The second benefit is often overlooked. I haven’t actually read anyone in the media covering this, but it’s super important for Ford. And that’s the commercial EV credit,” Farley said. “You know that Ford is the number one commercial vehicle brand in the US, and our commercial customers can now claim next year $7,500 per EV vehicle they buy with no restrictions on battery sourcing or manufacturing. Our preliminary estimate is that between 55 percent and 65 percent of all of our commercial vehicle customers will qualify.”
This is big news for both commercial EV customers and Ford, as the automaker currently expects that 70 percent of the full-size van segment alone will consist of all-electric vehicles by 2030. Additionally, it previously predicted that all-electric models will make up a grand total of 30 percent of full-size truck sales by that same date.
The short-term success of the Ford E-Transit – which launched earlier this year – would seem to put FoMoCo in a solid competitive position in that regard, too. In fact, the all-electric van has remained the best-selling vehicle in its segment for multiple consecutive months beginning in April and lasting through September, as Ford Authority previously reported. Altogether, the E-Transit commanded a 90 percent share of the EV van segment last month, which is an impressive figure indeed.