Chinese automaker BYD has gained a tremendous amount of market share across the globe in a very short period of time, largely due to the fact that it builds and sells EVs that offer far more for the money than much of its competition. Along with its fellow China-based rivals, BYD benefits from the fact that most of the raw materials used in EV batteries currently come from that very same place, coupled with massive investments in electrification, in general. Thus, it’s no surprise to hear Ford CEO Jim Farley admit that it’s currently impossible to compete with BYD on costs, specifically.
“BYD has vertical integration with the batteries. Its batteries are 30 percent cheaper than what we can buy from CATL,” Farley said during a recent appearance on The Verge‘s Decoder podcast. “For us to beat that battery, to even be in the neighborhood in terms of cost, we have to radically redesign the efficiency of the motors, gearboxes, and inverters on the EV side so it uses 30 percent less battery. We can’t beat BYD’s vertical integration on the cost of battery. The only way we can beat it was with innovation on the draw of the battery.”
Earlier this year, Farley touched on this particular subject as well, pointing out that disparities in individual component costs give Chinese automakers a huge leg up at the moment. It’s precisely why The Blue Oval is working to become more vertically integrated as well, developing its own EV systems, inverter, motors, and gearboxes as a way to better compete in terms of costs and efficiency.
Additionally, during the same conversation, Farley also revealed that Doug Fields – Ford’s chief EV, digital and design – provided him with a shocking revelation when he joined the company some time ago, as it pertains to BYD – saying that “He’s like, ‘Jim, your part release system, your IT, your CAD design systems are 25 years uncompetitive. There’s no way you can beat BYD with that. You need real expertise.’”
It's a clean sweep through 2025 thus far.
A nicely-kept two-owner example.
Nationwide lease and cash back on the off-roading SUV.
How far it's come since the early days.
Though it has 650 supercharged horsepower.
And the potential weakening of emissions rules.
