Ford CEO Joins Toyota, Honda Warning as Chinese EVs Grab 70% Market Share
Leaders of Ford, Toyota and Honda warn they cannot compete with China’s cost-efficiency, automation and rapid concept-to-market cycles; Chinese brands held 70% of global new EV sales in 2024. Honda’s China unit sales plunged from 1.6 million in 2020 to 640,000 in 2025, and Ford is overhauling its electrification strategy.
1. Chinese Manufacturing Advantage
China’s low labor costs, streamlined regulations and advanced automation enable vehicle development in roughly half the time of competitors, giving domestic automakers a significant cost-competitive advantage. In 2024, Chinese brands accounted for 70% of new global EV sales, underscoring their rapid scaling and global influence.
2. Impact on Ford
Ford’s leadership has joined Toyota and Honda in warning that domestic automakers risk obsolescence if they fail to match China’s production efficiency and speed. In response, Ford is overhauling its electrification strategy and accelerating digitization efforts to improve competitiveness in key markets.
3. Industry Responses
Honda’s vehicle unit sales in China plunged from 1.6 million in 2020 to 640,000 in 2025, prompting the company to reanimate its R&D arm and cancel several U.S. EV projects. Toyota reported year-over-year sales declines in China in March as homegrown makers like BYD continue to expand globally.