The electric vehicle landscape is changing at lightning speed. American automakers are now facing something they didn’t expect just a few years ago – fierce competition from Chinese brands that are rapidly gaining ground in global markets. Ford‘s chief executive recently shared some fascinating insights after his team conducted an in-depth analysis of vehicles from China‘s leading EV maker.
What Ford discovered by dissecting BYD vehicles
In a move that shows just how seriously traditional automakers are taking the Chinese EV threat, Ford’s top executive admitted that his company has been meticulously examining BYD‘s electric vehicles. “We’ve torn down and analyzed Chinese cars from BYD to understand how they do it,” he revealed during a recent industry meeting.
What did they learn? The findings were a wake-up call for the American automaker. The team was struck by how BYD’s LFP (lithium iron phosphate) batteries deliver impressive performance at significantly lower costs than what Western manufacturers can achieve.
“They aren’t paying margins because they develop their own batteries,” Ford’s CEO explained. He noted that while “BYD’s electric propulsion systems aren’t as efficient as they could be,” this actually points to room for improvement that might make these competitors even more formidable in the future.
The cost advantage that keeps US automakers up at night
Chinese manufacturers like BYD have mastered mass production at low costs, allowing them to offer vehicles at prices well below market averages. A typical BYD model in the US market might retail for $28,000-35,000, while comparable American EVs often start at $45,000+.
“Manufacturing must be as efficient as possible. We need smaller plant footprints, less labor, and reduced complexity,” the Ford chief stated, outlining what American companies need to achieve to remain competitive.
Ford isn’t sitting idle, though. The company has already begun changing production processes at its plants. Their acquisition of AMP, a company that brought improvements in motor efficiency and transmission technology, shows they’re actively working to close the gap.
What really concerns the Ford executive isn’t the technology itself. “What really worries me is how we’ll implement these technologies at scale,” he admitted. “It’s not so much whether our technology will be competitive, but if we can mass-produce with these new suppliers.”
Speed of innovation: the real threat
Beyond cost advantages, there’s another factor that has Ford’s leadership team losing sleep. “What really keeps me up at night is the speed at which the Chinese are innovating. Everyone talks about how good or cheap they are, but what really stands out is how fast they are.”
This rapid pace of innovation means that while Western automakers are still developing a response to current Chinese EVs, the next generation might already be hitting showrooms. (And trust me, having followed the auto industry for 15 years, this speed factor is something entirely new in the traditionally slow-moving car business.)
BYD’s growing presence in global markets
While BYD still holds a relatively small percentage of pure electric car sales in Western markets, the Asian firm is experiencing significant growth that allows it to climb new positions in the annual registration volume rankings.
In 2023, BYD ended the year with barely 0.9% market share. Last year it already ranked 13th with a 2.3% market share, making it the leading Chinese manufacturer in terms of sales excluding certain brands with foreign ownership.
In the first quarter of 2025, BYD has moved up to 12th position. While not a huge leap from the previous year’s result, its market share has increased to 3.3%, now becoming the Chinese brand that sells the most electric cars in Western markets after overtaking several competitors.
BYD now ranks ahead of several established brands in these markets, including Ford, Toyota, and others. Have you noticed more BYD vehicles on American roads lately? Their distinctive front-end design is becoming increasingly recognizable in many urban areas.
For American automakers, this analysis of Chinese competitors isn’t just about curiosity – it’s about survival in the rapidly evolving automotive landscape where electric technology and manufacturing efficiency will determine who thrives and who struggles in the coming decade.
