Ford Motor Company has been overtaken by Chinese electric car giant BYD in global vehicle sales for the first time, underscoring the dramatic shift underway in the global automotive industry.
Ford’s sales fell 2 percent last year to just under 4.4 million vehicles, while BYD sold 4.6 million, climbing to sixth place in the global ranking of automakers.
The milestone is symbolic for an industry shaped by Ford’s legacy. Founder Henry Ford revolutionized mass car ownership at the beginning of the 20th century with the Model T. More than a century later, the company that defined industrial automobile production is being overtaken by a Chinese electric vehicle specialist.
BYD’s growth has been fueled by its expanding portfolio of affordable, high-tech electric and plug-in hybrid vehicles. Its best-sellers include the SEAL U DM-i and the Dolphin electric city car, which are available in some markets for under £19,000.
In contrast, Ford has scaled back production of lower-priced small cars in Europe, phasing out the Ford Fiesta during the pandemic and turning instead to higher-margin SUVs and crossovers. Its entry-level Puma model now starts at more than £26,000.
Ford’s sales rose in the U.S., but the company lost ground in Europe and China – markets where competition for electric vehicles is increasing.
Felipe Munoz, an independent automotive analyst, said this trend was widely expected. “BYD is still in expansion mode. Even as sales in China slow, the company relies on exports to grow,” he said.
“Ford, meanwhile, remains heavily dependent on the US, where growth is modest, and has a small presence in China. Europe is also stagnating. This divergence is likely to continue.”
Western automakers, including Ford, are struggling to make the transition to electric vehicles. In December, Ford took a $19.5 billion (£14 billion) charge to curb production of electric vehicles, citing weaker-than-expected demand.
Munoz said Ford’s electrification strategy has been complicated by its presence in North America. “North American consumers are not enthusiastic about electric cars and government support has been inconsistent,” he said.
Ford has tried to regain its footing in China through a joint venture with Jiangling Motors and launched an all-electric version of its Bronco SUV. However, its Chinese market share has fallen from nearly 5 percent a decade ago to less than 2 percent today.
“Let’s see how the Bronco Electric performs,” Munoz said. “But so far nothing significant has changed.”
Despite global challenges, Ford remains the UK’s third largest car brand. According to the Society of Motor Manufacturers and Traders, around 119,000 vehicles were sold in the UK in 2025, representing a market share of 5.9 percent, an increase of 8 percent on the previous year.
Although BYD is still smaller in the UK, it is growing quickly. The company sold around 51,400 cars last year, achieving a market share of 2.5 percent, with sales increasing almost sixfold.
At the top of the world rankings, Toyota defended its crown for the sixth time in a row with sales of 11.3 million vehicles.
For Ford and other Western manufacturers, BYD’s rise represents more than just a change in rank; it reflects a deeper realignment of power in an industry increasingly dominated by electrification, cost efficiency and Chinese technological ambitions.
