Ford in the rear Mirror? Chinese EV Giant BYD cooks up Plans To Conquer detroit Icon

BYD, China’s biggest EV company, is gunning to surpass Ford in global sales, a move that would be an extraordinary jolt for the No. 2 U.S. carmaker. 

Riding the back of China’s EV sales, its total units sold could hit four million this year. According to Citigroup, its goal is for sales to reach as many as six million as soon as 2025. That would position it to surpass Honda and Ford and also consolidate its lead over Tesla as the world’s largest EV company. 

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BYD faces several challenges. One is that the government helps its EV sales in China, whereas in the rest of the world it would be facing head-on competition. Across the industry in China, according to Reuters, “The number of subsidised car trade-ins totalled more than 4 million as of Nov. 18, according to official data. Without such trade-ins, year-to-date car sales may have contracted versus a 4.4% increase for the January-November period, according to Reuters analysis based on industry numbers.”

Despite being dislodged from its position in the sales table, from Ford’s standpoint, BYD’s path to growth may not matter.

Tariffs serve as protection
That’s in part because Ford has some major tariff protection in its home market — the U.S. has 100% tariffs on EVs made in China — something that could last for years and thwart BYD’s success. Meanwhile, the European Union’s import taxes are not as high but still keep BYD retail prices high. 

Instead, BYD is likely press into many markets in South and Central America, such as Brazil, which is among the largest car markets in the world. BYD has also succeeded in Asia and will likely expand to India and Africa. In other words, it does not need the U.S. and EU to be successful, although its most ambitious expansion plans don’t work unless it can make sales in these two regions.  

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