Chinese electric vehicle powerhouse BYD seems poised to surpass Ford’s annual deliveries this year, marking a notable achievement that could elevate its status to among the world’s top 10 automakers, according to Bloomberg.
According to Bloomberg’s findings, BYD delivered 534,003 vehicles in October, putting it remarkably close to Ford’s total sales for the entire year thus far. Ford exclusively analyzes its global revenue performance on a quarterly basis, consistently reporting approximately 1.1 million vehicle sales over the past three quarters.
For the first time, BYD has surpassed Tesla in quarterly profits, according to reports. Tesla, however, fell short of expectations, reporting a Q3 income of $25.47 billion last week. Tesla’s gross margin expanded to 19.8 percent, whereas BYD achieved a higher figure of 21.9 percent in the third quarter, representing an increase from 18.7 percent in the previous quarter.
“Reaching a supply chain target of 4 million units marks a significant achievement,” said Michael Dunne, an expert in automotive business marketing, in a statement to Bloomberg. “Ford’s lead over BYD in the electric vehicle market is about to evaporate.”
BYD appears poised to surpass its first-tier Detroit rivals, as demand in China surges due to generous government subsidies encouraging people to trade in their older electric vehicles (EVs) or internal combustion engine (ICE) cars for something new – with BYD offering a competitive lineup of hybrids that sells extremely well in China alongside battery-electric vehicles.
Will BYD potentially surpass Ford in terms of deliveries this year?
During the third quarter, BYD outpaced Ford by a significant margin, with sales exceeding 1.13 million units – primarily passenger cars – plus thousands more vans and buses, according to Bloomberg’s findings.
As BYD’s plans to penetrate the Canadian market hit a roadblock, the company appears to have put its entry strategy on hold, reportedly hesitant to navigate the country’s steep 100% federal tariff hurdle for Chinese-made electric vehicles amidst escalating trade tensions with the United States. After months of painstaking effort over the summer, BYD executives place a pin on the plan, having assembled teams to meet with Canadian sellers to discuss establishing a distribution network for the model’s car, while also engaging with lobbyists to gain the federal government’s approval.
Following his inauguration as US president, Donald Trump declared plans to repeal funding for the Inflation Discount Act, a bill championed by Joe Biden that allocates more than $8.5 billion in incentives to support Americans in reducing their carbon footprint. President Trump has publicly stated that vehicles manufactured in Mexico may face tariffs of up to 200%, while those from China, Europe, and other countries are likely to be subject to even higher levies. Chinese-made vehicles have been effectively barred from entering the US market due to a blanket 100% tariff imposed on imports.
Following the presidential election, major players in the electric vehicle industry, including Tesla, Lucid, Rivian, and battery manufacturer LG, have expressed their willingness to collaborate with the incoming administration to ensure the continued advancement of electric vehicle technology.
Despite this, the Big Three in Detroit – General Motors, Ford, and Chrysler parent company Stellantis – are likely to be the biggest “winners” of Trump’s victory, which means they won’t need to decarbonize their portfolios and shift to EVs at any set pace, Reuters reports.
While BYD has yet to set foot in the US or Canada with its passenger vehicles, the company seems unfazed by this development. According to a recent report from Bloomberg, He Zhiqi, senior vice president at BYD, boasted on his Weibo account that the company had significantly boosted manufacturing capacity by approximately 200,000 units between August and October through a corresponding hiring spree for its assembly and component divisions.
Meanwhile, legacy automotive manufacturers are grappling with significant challenges – cutting staff numbers, scaling back production, and revising downward their already optimistic projections. Nissan announced it has entered an “emergency” phase, prompting the partial sale of its stake in Mitsubishi, reducing production capacity and cutting approximately 9,000 jobs.
Last month, Volkswagen, with its significant presence in Germany comprising 10 plants and a workforce of 300,000 employees, announced plans to shutter three German facilities – a historic first for the company in its 87-year history, marking an unprecedented closure of factories within its own domestic market. The company’s proposed restructuring involves eliminating tens of thousands of positions and implementing significant pay cuts for roughly 10% of its remaining workforce.
Within the US, Stellantis is reducing its workforce by 1,100 positions at its Toledo Assembly Complex.
According to Tu Le, a senior advisor at Sino Auto Insights and a specialist in the Chinese automotive market, BYD’s current standing is unparalleled globally, with no competitor matching its performance. Legacy automotive companies seem to be collateral damage as BYD charges ahead, poised to become the world’s leading manufacturer.
