• For the first time, Chinese EV leader BYD sold approximately 4.6 million vehicles, edging out Ford's 4.4 million units a nearly 2% decline for Ford
• This highlights the rapid shift towards Chinese dominance in electrified vehicles driven by cost advantages, vertical integration, and EV/hybrid focus
• Toyota retained the top spot with over 11.3 million sales, followed by Volkswagen, Hyundai Group, amid global light-vehicle sales nearing 92 million units

Harare- Chinese electric vehicle (EV) giant BYD has overtaken Ford in annual car sales for the first time in 2025, marking a pivotal moment in the transition toward electrified mobility. BYD delivered approximately 4.6 million vehicles worldwide, edging out Ford's 4.4 million units, which represented a nearly 2% decline for the American automaker.

This achievement propelled BYD to sixth place among the world's largest automakers, while Ford slipped to seventh, reflecting the rapid ascent of Chinese manufacturers in a market increasingly dominated by EVs and hybrids. BYD's growth, though slightly tempered from previous years' explosive rates, still highlights its resilience amid global economic headwinds, including slowing demand in key markets and intensifying competition.

The milestone reflects broader industry trends, where electrification and cost efficiencies are reshaping hierarchies long held by legacy players like Ford, which has struggled with EV transitions and supply chain disruptions. 

Toyota retained its crown as the world's best-selling brand, delivering over 11.2 million vehicles, bolstered by its diverse lineup including hybrids and strong performance in Asia and North America. Volkswagen followed with around 8.9 million units, maintaining a solid foothold in Europe and emerging markets despite EV transition challenges and operational pressures, such as plant closures in Germany driven by high energy prices and economic headwinds.

Hyundai Group secured third place with approximately 7.2 million sales, driven by affordable models and expanding EV offerings. Ford, now in seventh, trailed behind BYD, which ranked sixth, while other notables included Honda at fifth with about 4.2 million, Suzuki at ninth with 3.3 million, Nissan at eighth with 3.2 million, Chevrolet at tenth with around 2.9 million, and Kia rounding out the list at eleventh but often grouped with Hyundai for combined strength.

 This ranking shows the growing influence of Chinese brands like BYD, which have capitalized on domestic demand and international expansion, while Japanese and American marques like Toyota and Ford navigate varying degrees of success in adapting to electrification.

Overall, global vehicle sales in 2025 approached 90 million units, with EVs and hybrids accounting for a record 20% share, signalling a market in flux. However, Volkswagen's decision to close its Dresden plant in Germany, the first such closure in the company's 88-year history highlights the strain from elevated energy costs, weak European demand, and US tariffs, potentially impacting up to 35,000 jobs by 2030 and reducing production capacity by over 700,000 vehicles annually. 

BYD's surpassing of Ford is no fluke but a testament to its competitive advantages in the EV sector, where innovation and efficiency have propelled it ahead of legacy automakers. At the core is BYD's vertical integration, controlling everything from battery production to semiconductors and even shipping logistics, which slashes costs by 20-30% compared to rivals reliant on external suppliers.

This self-sufficiency, honed since BYD's founding as a battery maker in 1995, has enabled resilient supply chains amid global disruptions, allowing consistent production scaling to meet demand. The proprietary Blade Battery, using lithium iron phosphate (LFP) chemistry, offers superior safety, longer lifespan, and lower costs than nickel-based alternatives, giving BYD an edge in affordability without sacrificing performance.  

Platform standardisation, like the e-Platform 3.0 Evo, allows modular designs that speed up model launches and reduce development expenses, enabling BYD to offer a broad portfolio from budget hatchbacks to premium SUVs. Government support in China, including subsidies and a massive domestic market, has fuelled rapid scaling, while aggressive overseas expansion, factories in Thailand, Brazil, and Hungary positions BYD for global dominance.

These factors have allowed BYD to undercut competitors on price while maintaining quality, capturing market share in both emerging and developed economies.

Central to this is BYD's low-price strategy, offering models like the Seagull at under $10,000 in China, far below Western equivalents through economies of scale, efficient manufacturing, and minimal markups, which has pressured rivals like Ford to accelerate cost-cutting and EV affordability efforts. 

BYD's global ambitions are exemplified by its recent venture into Zimbabwe, where the company is spearheading the adoption of EVs in a market traditionally dominated by internal combustion engines. In 2025, BYD Zimbabwe launched a lineup of electric models, including the Atto 3, Dolphin, Sealion 6, and Shark 6, at a high-profile event in Harare, tapping into government incentives for green energy and growing environmental awareness.

The move aligns with Zimbabwe's push for sustainable transport, supported by fiscal reforms and solar infrastructure expansion, as EVs gain traction amid fuel shortages and high import duties on traditional vehicles. BYD's local presence includes showrooms offering servicing, spares, and charging solutions, with models like the EM7 hybrid boasting 260km ranges, appealing to urban consumers facing power unreliability.

 This expansion not only boosts Zimbabwe's green transition but also positions BYD to leverage Africa's growing EV potential, with plans for local assembly and partnerships in solar integration. BYD's entry coincides with Zimbabwe's lithium sector surpassing $500 million in export revenues in 2025, driven by mines like Bikita, Zulu, and Sabi Star, which produced over 100,000 tonnes of lithium concentrate amid global demand for battery materials.

BYD's involvement could mean upstream integration, job creation in processing, and technology transfer, elevating the sector from raw exports to value-added partnerships. Conversely, BYD benefits from a stable, cost-effective lithium supply chain, reducing dependency on volatile global prices and enhancing battery production efficiency potentially cutting costs by 10-15% through direct sourcing and joint ventures, fostering mutual growth in the EV ecosystem. 

Amid BYD's triumphs, however, discussions around its financial health have intensified, particularly regarding "hidden debt" that could pose risks to its long-term sustainability. Analysts from GMT Research have estimated BYD's true net debt at around 323 billion yuan ($44 billion) as of mid-2024, far exceeding the reported 27.7 billion yuan, due to off-balance-sheet supply chain financing and extended payables exceeding 90 days.

This practice, involving in-house notes like Dilian, has strained suppliers by delaying payments, sometimes up to a year, while allowing BYD to mask liabilities and fund expansion. In 2025, BYD began phasing out Dilian amid scrutiny, but inventory ballooned to 153 billion yuan, up 32%, and long-term borrowings skyrocketed 641% to 61.2 billion yuan, signalling cash flow pressures.

October sales dropped 12% year-on-year, and Q3 revenue fell 3%, the first decline in over five years with profits tumbling 33%, raising questions about overcapacity and subsidy dependence. Critics argue this "financial engineering" masks vulnerabilities, potentially exacerbating issues if EV demand softens further or credit tightens. 

Ultimately, BYD's overtake of Ford symbolizes the EV revolution's momentum.  With advantages in vertical integration and cost leadership, it has the tools to thrive, but hidden debt concerns could undermine investor confidence if not managed proactively.

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