The global automotive landscape has undergone a significant shift in recent years, with electric vehicles (EVs) becoming increasingly popular. However, despite being a pioneer in the EV space, Ford found itself struggling to keep up with its Chinese rival BYD last year. BYD outsold Ford globally for the first time, selling over 4.6 million new energy vehicles, including both battery-electric and plug-in hybrid models. This unexpected turn of events has prompted Ford to reassess its strategy and focus on more affordable EVs that can compete with the likes of BYD and other Chinese automakers.
According to recent reports, Ford's sales rose by 6% to over 2.2 million vehicles in the US last year, but the company struggled in other key global markets, including Europe and China. The influx of affordable, efficient, and often more advanced EVs from Chinese brands has made it challenging for Ford to maintain its market share.
One of the main reasons behind BYD's success is its decision to stop producing vehicles powered solely by internal combustion engines (ICE) in 2022, focusing instead on battery-electric and plug-in hybrid models. This shift has enabled the company to capitalize on the growing demand for EVs and expand its presence in overseas markets.
BYD's aggressive expansion into new markets, including Europe, Southeast Asia, South America, and Australia, has been driven by its low-cost EVs such as the Dolphin and Atto 2. The company's ability to offer affordable and efficient vehicles has made it an attractive option for consumers looking to switch to electric.
As part of its updated Ford+ plan, the American automaker is shifting from larger electric trucks and SUVs to smaller, more affordable EVs. This move is aimed at making EVs more accessible to a wider range of consumers and increasing demand for the technology.
The key to this strategy is Ford's new Universal EV Platform, which promises to reduce parts usage by 20% compared to traditional vehicles. The platform also features 25% fewer fasteners, 40% fewer worstations dock-to-dock in the plant, and 15% faster assembly time.
Ford's CEO Jim Farley has stated that the new platform is designed to 'democratize' EVs, making them more affordable and accessible to a broader audience. He also emphasized the importance of chasing physics, rather than building bigger batteries, to reduce costs and increase efficiency.
The first vehicle based on the Universal EV Platform will be a midsize electric pickup, due out in 2027, starting at around $30,000. This move is expected to make Ford's EVs more competitive with those of its Chinese rivals.
In addition to its new platform, Ford will also rely on partnerships, including a new one with Renault, to introduce more affordable EVs to market more quickly and with lower upfront costs.
Ford's decision to focus on more affordable models and its new Universal EV Platform is a response to the growing competition in the electric vehicle market, where Chinese brands like BYD are gaining ground.
