BYD has attracted global attention as an automaker that has successfully specialised in PHEVs and BEVs after announcing the cessation of production of internal combustion engine vehicles in March 2022. product strength by fully adopting a dedicated BEV platform, the DM-i PHEV system, blade batteries, etc, The company has refined its cost competitiveness and has grown to become the largest car manufacturer in China, overtaking FAW-VW with a production volume of 1.88 million units in 2022.

Reasons for the company’s rapid growth include lower NEV product prices, which are the result of an in-house manufacturing rate of more than 90%, semi-automation of facilities and government assistance. In terms of product prices, the most mass-marketed PHEV models Song PlusDM-i SUV and Qin PlusDM-i sedan are cheaper than the Toyota RAV4HEV and CorollaHEV in the same class, while the first model Dolphin on a BEV-only platform is almost the same price as the competitor Honda Fit. 2023 The entry price of the Seagull (海鷗), unveiled at the Shanghai Motor Show in April, was in the RMB 70,000 range, making a significant impact on the industry as the price gap between BEVs and internal combustion engine vehicles has almost disappeared. The low-priced model was achieved by in-house production of not only the elemental technologies required for NEVs, such as batteries, motors, inverters and engines, but also HMI, interior components and Si/SiC/MC semiconductors. On the other hand, to minimise the risk of capital investment, the company promotes a semi-automated philosophy, introducing automation equipment only for critical processes. In addition, financial information reveals that BYD has obtained many development and production subsidies from the central and local governments, as well as wage subsidies for employees. In order to properly understand the extent to which these factors have influenced BYD’s rapid growth, it is necessary to have a basis for making decisions that paint a holistic picture of BYD’s business.

This in-depth study of BYD’s product line-up strategy, development of strategic components, production system, sales situation and organisational personnel will provide an important reference for Japanese car manufacturers and component suppliers when planning their electric vehicle strategies.