Millennials and Women Drive Ford SUV Sales Surge in Early 2016
Ford recorded its strongest ever January-February SUV sales in the US, with millennials and women buyers emerging as key growth drivers for the brand.
Ford’s US SUV sales reached a record high for the first two months of 2016, with 115,228 retail units sold in January and February. That figure represented a 16% increase over the same period in 2015, outpacing the overall US SUV market, according to the company.
The surge was fuelled by double-digit percentage growth across all six Ford SUV models. February alone saw a 28% year-on-year jump in SUV sales, with the Explorer leading the charge. Explorer sales rose 18% in February and 7% year-to-date, making it the most popular Ford SUV among buyers aged 25 to 34, based on IHS Automotive registration data.
Who is buying Ford SUVs?
Ford’s internal analysis and IHS Automotive data point to millennials and women as the main drivers of this growth. Millennials, defined here as buyers aged 25 to 34, are increasingly choosing Ford SUVs as they form families and move to suburban areas. The National Association of Realtors reports a median age of 30 for first-time homebuyers in the US, indicating that many in this age group are now settling down and prioritising space and practicality in their vehicle choices.
Women buyers are also a major force behind the rising sales. The Explorer is now the most preferred midsize SUV among women in the US, according to IHS registration data. This trend reflects a broader shift in the market, with more women making independent vehicle purchase decisions and favouring SUVs for their versatility and perceived safety.
SUVs outpacing the market
Ford’s SUV sales growth in early 2016 was roughly double the pace of the broader US SUV market. The company credited this momentum to shifting demographics and changing lifestyles, particularly as millennials and women buyers seek vehicles that better fit their needs. The trend mirrors wider industry patterns, with SUVs consistently driving sales growth in both US and European markets. For context on Ford’s performance in Europe, see Ford's February Sales in Europe Jump 18% on SUV Demand
What it means for Ford
The strong start to 2016 underlines the importance of targeting younger and more diverse customer groups. Ford’s ability to attract millennials and women into its SUV line-up suggests that its product and marketing strategies are resonating with these buyers. If these trends continue, the company is likely to maintain a strong position in the highly competitive SUV segment.
