The top executive at Ford Motor Company has revealed that his team has been taking apart and analyzing electric vehicles made by Chinese automaker BYD to better understand what’s behind their rapid rise to global prominence.
Like many others in the auto industry, Ford has been stunned by the meteoric ascent of Chinese manufacturers since they began selling vehicles in Western markets just a few years ago. This has prompted Ford and other established automakers to closely examine the strategies, products, and technologies of these new competitors, with BYD emerging as the primary focus due to its dominance in the electric vehicle market.
The Chinese company led by Wang Chuanfu isn’t just the number one automaker in its home country – since last year, it has also become the world’s largest producer and seller of electric vehicles. This achievement has elevated BYD to a position of influence within the automotive industry, drawing intense scrutiny from competitors across Europe, Japan, and the United States.
Ford CEO amazed by Chinese brands’ performance
On this side of the Pacific, Ford is among the brands paying close attention to BYD’s almost overnight success. This has led the American automaker, under the leadership of its CEO, to dismantle and analyze BYD vehicles to uncover their secrets – to understand how they function and how they manage to sell them at highly competitive prices without compromising on quality.
“We’ve taken apart and analyzed BYD’s Chinese electric vehicles to understand how they do it,” the Ford CEO stated. Not surprisingly, what he and his team discovered wasn’t to their liking, though it has prompted them to reflect and gain a better understanding of how their own industry needs to evolve if they want to remain competitive in the race toward automotive electrification.
For Ford’s chief executive, the most surprising aspect was the affordability of BYD’s LFP (lithium iron phosphate) batteries. “They’re not paying margins because they develop their own batteries,” he explained. “BYD’s electric propulsion systems aren’t as efficient as they could be,” which presents an opportunity for improvement for the Chinese company.
Less expensive to produce with top-tier innovations
The major competitive advantage of the Chinese automotive industry is its ability to mass-produce at low cost, allowing them to offer vehicles at prices well below the market average.
“Manufacturing must be as efficient as possible. We need a smaller plant footprint, less labor, and reduced complexity,” states the head of the American company.
None of this comes as news to Ford, which is already working to change some manufacturing processes in its automobile production plants. The acquisition of AMP, a company from which Ford has gained improvements in motor and transmission efficiency, also factors into their strategy.
“What really worries me is how we’re going to implement these technologies on a large scale,” noted the top Ford executive. “It’s not so much whether our technology will be competitive, but whether we’ll be able to produce at scale with these new suppliers.”
Finally, Ford’s CEO made it clear that what has surprised him most about his Chinese competitors is the speed at which they execute innovations. “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 truly stands out is how fast they are.”
BYD advances in the global market
While BYD still holds a smaller percentage of pure electric vehicle sales in many markets, the Asian company is experiencing significant growth that allows it to climb to new positions in the rankings of brands with the highest annual registration volumes.
For example, in 2023, BYD finished the year with just 0.9% market share in Europe. Last year, it already ranked 13th with a 2.3% market share, making it the top Chinese manufacturer in terms of sales without counting MG, which finished in 10th place with a 3.6% share.
In the first quarter of 2025, BYD has moved up to 12th position in this same ranking. While this isn’t as significant an advance compared to the previous year’s result, its market share has increased to 3.3%, now making it the Chinese brand that sells the most electric vehicles in Europe after overtaking MG (16th on the list).
BYD is also now ranked ahead of several well-established brands, including Ford, Toyota, and others.
(Want to know what makes these Chinese EVs so special? I’ve driven a few myself, and while the ride quality isn’t always up to luxury standards, the tech features and value proposition are truly eye-opening.)
The electric battle heats up
As traditional automakers face this new competitive landscape, the race to adapt manufacturing processes, supply chains, and technology development has never been more intense. For American consumers, this battle will likely translate to more affordable electric options hitting our shores in the coming years – though import tariffs may impact final pricing.
With BYD’s electric vehicles already priced at around $25,000 in some markets, domestic manufacturers are feeling the pressure to match both the price point and the rapid innovation cycle. Will American automakers be able to adjust? Only time will tell, but one thing is certain: the automotive landscape has been forever changed by this new wave of Chinese competition.
