Ford lags behind BYD as China transforms the automotive sector

BYD Surpasses Ford in Global Sales

For the first time, Chinese automaker BYD has outsold Ford on a global scale, signaling a significant transformation within the automotive sector.

Last year, Ford’s worldwide sales dipped by 2% to just under 4.4 million vehicles, while BYD’s numbers soared to 4.6 million, elevating the Chinese company to sixth place among the world’s largest car manufacturers.

Although Ford saw an uptick in US sales, it continues to lose market share in both Europe and China.

Ford remains recognized for popular models like the Fiesta and Focus, which are still widely seen on UK roads.

This shift marks a pivotal moment, as Ford’s legacy—dating back to Henry Ford’s Model T, which revolutionized car ownership—faces new challenges from emerging competitors.

American and other Western carmakers are increasingly contending with affordable, technologically advanced vehicles from BYD and other Chinese brands.

Among BYD’s bestsellers are the SEAL U DM-i and the Dolphin Surf electric city car, which is priced below £19,000.

Ford discontinued the Fiesta during the pandemic and has since shifted its focus to higher-priced crossovers and SUVs, with the entry-level Puma starting at just over £26,000.

Despite these changes, Ford still holds its position as the third-largest car brand in the UK, selling more than twice as many vehicles as BYD in the country last year.

In 2025, Ford sold approximately 119,000 cars in the UK, capturing a 5.9% market share, according to the Society for Motor Manufacturers and Traders (SMMT)—an 8% increase from the previous year.

BYD, by comparison, sold around 51,400 vehicles in the UK, representing a 2.5% market share, but its sales surged nearly sixfold year-over-year.

Challenges in the Transition to Electric Vehicles

Ford and other Western manufacturers have encountered difficulties adapting to the shift toward electric vehicles (EVs).

In December, Ford announced a $19.5 billion (£14 billion) write-down as it scaled back EV production, citing weak consumer interest.

Automotive analyst Felipe Munoz highlighted Ford’s slow growth in regions like Europe, contrasting it with BYD’s rapid international expansion, particularly through exports to Europe and South America.

This growth is partly driven by fierce competition and aggressive pricing among Chinese brands domestically, even as government support is being reduced to curb excessive price wars.

Munoz noted, “BYD remains in growth mode. Even as domestic sales slow, the company is increasingly relying on exports to fuel its expansion.”

Ford’s Limited Global Reach

Munoz further explained that Ford’s lack of expansion has left it reliant on established markets, with half of its sales coming from the US—a region with limited growth prospects. Its presence in Europe is stagnant, and its footprint in China is minimal. As a result, BYD’s momentum in export markets is expected to continue outpacing Ford’s performance this year.

He also pointed out that Ford’s electrification challenges are exacerbated by its dependence on North America, where inconsistent government policies and tepid consumer demand for EVs have hindered progress.

“The North American market isn’t enthusiastic about electric vehicles,” Munoz said. “And Ford is unable to capitalize on the strong demand for EVs in China.”

In China, Ford has introduced an all-electric Bronco SUV through a partnership with Jiangling Motors, but its market share has plummeted from nearly 5% a decade ago to under 2% today.

“It remains to be seen how the new Bronco Electric will perform in China,” Munoz added. “So far, there’s been little impact, even in Europe, from Ford’s electric offerings.”

Global Market Leaders

Toyota of Japan maintained its position as the world’s top carmaker for the sixth consecutive year, with global sales reaching 11.3 million vehicles.

Ford declined to comment on these developments.