Ford has been overtaken in sales for the first time by Chinese carmaker BYD in a sign of the changes upending the automotive industry.
The US motor giant’s sales fell by 2pc to just under 4.4 million last year. That compares to 4.6 million sold over the same period by BYD, which climbed to sixth in the rankings of global car manufacturers.
Ford’s US sales rose but the carmaker has been losing ground in both Europe and China.
The company is best-known for top-selling cars such as the Ford Fiesta and the Ford Focus, which remain among the most-driven vehicles on Britain’s roads.
BYD overtaking Ford is a landmark moment due to the US giant’s historic role in shaping the industry, with founder Henry Ford’s Model T ushering in the modern era of car ownership in the early 20th century.
American car giants and other Western carmakers face growing competition from the likes of BYD and other Chinese brands that are low-priced and increasingly high-tech.
BYD’s most popular cars include its SEAL U DM-i and the Dolphin Surf electric city car, which sells for less than £19,000.
Ford phased out the Fiesta during the pandemic and has since gravitated towards more expensive crossovers and SUVs, with its cheapest car, the Puma, starting at just over £26,000.
However, the US company remains Britain’s third-biggest car brand with more than double the UK sales of BYD last year.
It sold about 119,000 thousands cars in 2025, representing a market share of 5.9pc, according to the Society for Motor Manufacturers and Traders (SMMT).
That was an increase of 8pc on the previous year.
By comparison, BYD sold about 51,400 cars and took a market share of about 2.5pc – but its sales increased nearly sixfold.
Difficult EV shift
Ford and its Western rivals have struggled to adapt to the electric vehicle (EV) transition.
The company announced a $19.5bn (£14bn) hit to its balance sheet in December to scale back EV production, blaming lacklustre consumer demand.
Felipe Munoz, an independent automotive analyst, contrasted Ford’s difficulties and slow sales growth in regions such as Europe with BYD’s rapid expansion worldwide, which has seen the Chinese company increasingly focus on exports to regions such as Europe and South America.
This is partly because of intense competition and price wars between Chinese brands at home, although the country’s government has sought to wind back state support and discourage cut-throat tactics.
Mr Munoz said: “BYD is still in expansion mode and, even if their sales in China are not performing as well as in the past, they’re now relying on exports to grow.