In just a few short years, BYD has gone from being “one of many Chinese automakers” to becoming a global electric powerhouse, grabbing market share at a pace that’s leaving giants like Tesla, Volkswagen, and Ford gasping for air. The key to its meteoric rise? Aggressive pricing, total supply chain control, and a level of efficiency that would make even Henry Ford blush. Even Jim Farley, Ford’s CEO, has thrown in the towel, at least for now.
Speaking on The Verge’s Decoder podcast, Jim Farley admitted bluntly: “Right now, it’s impossible to compete with BYD, especially on cost”. He explained that BYD’s vertically integrated battery production gives it a massive edge. “Their batteries cost 30% less than the ones we can buy from CATL”, Jim Farley said. “To beat that, or even match it, we have to radically redesign our EV motors, gearboxes, and inverters to use 30% less battery. We can’t beat their cost structure. The only way forward is innovation”.
That’s a sobering reality for Western automakers. Chinese brands like BYD not only dominate access to battery raw materials, but also enjoy deep government support and an industrial ecosystem tailor-made for electrification.
Adding a bit of drama to the story, Ford’s CEO shared a moment of tough honesty from Doug Field, Ford’s chief of EVs, digital, and design (and a former Tesla exec). When Field first joined Ford, he reportedly told Farley: “Jim, your release systems, your IT, your CAD design, they’ve been uncompetitive for 25 years. You’re not beating BYD with this setup. You need real expertise”.
It’s a humbling moment for the Detroit automaker, and a reminder that the electric revolution isn’t just about cheaper batteries or faster chargers. It’s about who can innovate faster. And for now, BYD’s the one in the fast lane.
