The seven ingredients of the successful BYD recipe:
BYD’s building blocks are its own EV battery packs, motors and good suppliers -, a rock-solid, broad model program and its own sea transportation are the basis of BYD’s success. The quality and reliability of BYD models seems to be very high. Also, the brand is very far with the implementation of Software Defined Vehicle (SDV) technology. Not a coincidence, but part one of a sophisticated multi-year business plan.
Chinese home market: growing demand from 2020
Inspired by Elon Musk: when Tesla started building tens of thousands of Model 3s in Shanghai in 2020, it had a massively positive effect on the Chinese market’s attitude toward EVs. Brands like BYD Beijing) , SAIC (Shanghai), NIO and many other Chinese EV makers were thus able to hitch a ride. Many of these are related to local Chinese governments and compete fiercely.
BYD’s own design & architecture
BYD chose experienced European designers (Wolfgang Egger-Audi) for attractive and thoughtful design. Now BYD is the undisputed global leader in hybrid and electric cars. It produces the most cars worldwide (around 1.8 million) , and accounts for about 40% of Chinese production. BYD has designed its own architecture including the Software Defined Vehicle structure. The lack of car building legacy in this case is a strong advantage.
BYD’s complete range
BYD is very complete: now including a pickup, premium models, 4×4 off road etc. It can therefore compete with entire volume segment as well as mavericks such as the Porsche EV, the Hybrid Land rover Defender and the Tesla CyberTruck pickup. The company offers a complete range of vehicles, from the Seagull to the Atto3 sedan , the Tang SUV.
No one in the world can match BYD when it comes to price. And she has now 4 brands: BYD Ocean, Denza, FCB, YangWang.
BYD’s own Blade LFP technology battery production
Proprietary batteries BYD produces its own Blade battery packs. Thus, it fully controls quality m availability, price and warranty in-house. BYD also offers a large range of Plug-in Hybrids. And that is a success factor because Europe demands more Plug-ins than Full Electric BEV).For example, Tesla does not have PHEVs.
BYD’s own sea transport
With its own transport ships (Explorer) BYD controls the route, timing and cost of sea transport. In this way BYD can control the effects of geopolitical effects on the export routes
BYD’s own production in Europe
In 2025, the opening of BYD’s own European factory in Hungary is planned. Closer to the market, and to bypass duties.
Also production in Mexico, close to the US and within Nafta trade contracts: so it can still enter the US.
BYD’s sales network:
BYD has long worked to establish a sustainable sales and repair network in Europe. Whereas other Chinese brands only have sales agents, BYD has discovered the need to offer local service. Thus, it is ready to sell and then service BYD cars.
So, is there anything that can stop BYD’s momentum? Two things to keep an eye on:
A. Additional charges. But even despite that, the price is still attractive.
B. Long-term quality: this seems to be good. The proprietary Blade batteries are just fine, and the build quality also seems to be in good shape.
So the question is whether BYD’s upcoming supremacy can still be disrupted. The answer seems to be clear…
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