Ford CEO Jim Farley challenges BYD: "Our electric motors are 30% more efficient than theirs"
30/10/2026 12:30
Updated to
30/10/2026 12:30
The competition between Western automakers and Chinese electric vehicle brands is entering a new phase. Over the past few years, BYD has become one of the world’s leading players due to its ability to develop electric vehicles at competitive prices. However, Ford CEO Jim Farley claims that his company has gained a significant technological advantage over the Chinese giant.
During the presentation of the third-quarter financial results, Ford’s top executive stated that its new electric propulsion systems are approximately 30% more efficient than those used by BYD. This is a particularly striking claim given that Farley himself has acknowledged on numerous occasions the competitive advantage Chinese manufacturers have gained in certain aspects of the industry.
Jim Farley claims Ford has surpassed BYD in efficiency
"There is another area where we have truly achieved a significant advantage over BYD. That is the efficiency of our engines, transmissions, and inverters, which are about 30% more efficient than theirs, allowing us to design a much smaller battery," explained Jim Farley during the investor conference.
The executive added a phrase that summarizes the importance of this advancement for the company’s strategy: "I think that’s really fundamental." His reasoning is simple: if a car needs less energy to cover the same distance, it can use a battery with lower capacity without necessarily compromising its range.
This issue is particularly important because the battery remains one of the most expensive components in any electric car. Reducing its size helps lower manufacturing costs, the vehicle’s weight, and the amount of material required. However, Ford has not specified which BYD propulsion system it used as a reference to achieve that 30% difference, so it is still not possible to verify the exact scope of this comparison.
A new electric platform to compete with Chinese cars
The technology announced by Farley will be one of the key components of Ford’s new Universal Electric Vehicle (UEV) platform. Its first model will be the Ford Fathom, an electric pickup with an announced starting price of $28,350 in the United States, set for release in 2027.
Ford has not yet confirmed the exact capacity of its battery, though previous reports suggest a range of 50 to 60 kWh. The company aims to offer over 400 kilometers of range through a combination of more efficient motors, fewer components, and new manufacturing processes.
The goal is to make its upcoming electric vehicles more economically competitive than models such as the Mustang Mach-E or the F-150 Lightning. To achieve this, Ford is redesigning its electric architecture from scratch and increasing in-house development of certain components, a strategy that mirrors BYD’s high level of industrial integration.
Ford also wants to apply these improvements to its hybrids
Farley’s comments come after Ford admitted that BYD had an approximate 20% advantage in battery costs compared to its Fathom project. Rather than trying to offset this by simply reducing the cost of battery cells, the American company has chosen to improve the efficiency of the powertrain to require a smaller battery.
In addition, Ford is studying the methods of other Chinese manufacturers. Its executives have said that collaborating with Geely in Europe is also helping them learn how to cut manufacturing costs and accelerate the development of new vehicles. In fact, Kumar Galhotra, Ford’s Chief Operating Officer, confirmed that the company’s future hybrid models will also benefit from the advancements made for the UEV platform.
For now, the 30% advantage announced by Jim Farley remains an assertion by the American manufacturer, with no independent technical comparison published yet. But his statements clarify Ford’s strategy, which is to compete with BYD not only through lower prices but also by developing electric systems capable of making better use of every kilowatt hour of energy.