Peak ICE is behind us: BYD's export fleet and the legacy price war

According to the International Energy Agency's (IEA) 2025 Global EV Outlook, the global peak of internal combustion engine (ICE) vehicle sales occurred in 2017 — meaning the decline of fossil-fuel-powered cars is not a future scenario but an already-unfolding reality. Electric vehicle adoption has crossed a structural tipping point, and the transition is now considered irreversible by the agency's analysts.

BYD is taking its global ambitions a step further by building its own dedicated car-carrier fleet. Rather than depending on third-party shipping companies, the Chinese EV giant is investing in purpose-built vessels to transport its vehicles to Europe, South America, and Southeast Asia. This vertical integration gives BYD a significant logistical and cost advantage, allowing it to move faster and more cheaply into new markets.

Legacy automakers — including Volkswagen, Stellantis, and Ford — are increasingly caught in a price war they did not choose. As Chinese EV manufacturers undercut traditional brands on price, Western carmakers are forced to respond with discounts and restructuring. The problem is structural: high labor costs, legacy production lines, and heavy R&D debt make aggressive price competition far more damaging for incumbent brands than for their leaner Asian rivals.

The implications are global. For consumers in the EU, the US, and emerging markets, the intensifying competition means electric vehicles are becoming more affordable faster than many expected. The IEA's 'Peak ICE' milestone is not just a symbolic moment — it is a signal that the economics of transportation are fundamentally shifting toward electrification.