BYD – A new leader in the global automotive market
- Lucas García
- Jul 11
- 8 min read
BYD is breaking into the global market, offering not only vehicles at competitive prices and features, but also innovating new supply chain strategies.
A new leader
With the widespread introduction of electric vehicles to the global market, their early years presented several challenges in terms of operating range and battery recharge times. These challenges impacted their initial widespread adoption and user experience. These challenges included limited range and the impact of external conditions, such as charge reduction in cold climates, as lithium-ion batteries lose efficiency at low temperatures, reducing range by up to 40-50% in extreme conditions. Another factor affecting their use was the use of auxiliary systems such as heating or air conditioning, which consume additional energy. The vehicle's weight, particularly due to the design of large batteries, reduces energy efficiency, although innovations such as hybrid aluminum and copper cables seek to mitigate this.
One of the major restrictions was due to the long charging time, but within this problem, two methodologies can be distinguished, which have diverse impacts on vehicle use or battery life:
Fast Charging (DC): Although it can bring the battery to 80% in 30-45 minutes, frequent use degrades the battery up to 40% faster.
Home Charging (Level 1 or 2): Can take 20-30 km of range per hour on Level 1 or even days on Level 1.
Slowdown after 80%: Charging speed slows significantly to protect the battery, making the last 20% take as long as the first 80%.
Another factor is battery degradation, and its impact on rapid charging, which subjects it to high electrical currents, generates heat and "stress" on the internal components, accelerating capacity loss.
The user may engage in practices that are detrimental to the battery's lifespan, such as charging to 100% frequently or discharging below 20%, which reduces the battery's lifespan.
Today, technological advances have made it possible to develop electric vehicles that take between 5 and 30 minutes to fully charge, depending on the characteristics of the refueling station. New models already boast a range of between 300 and 700 km, depending on the market segment, and the ability to perform up to 5,000 charging cycles, resulting in a useful life of up to 1.5 million kilometers.
In March 2025, the Chinese company BYD unveiled its new ultra-fast charging terminal. It offers 2 km of range per second (almost the same time as charging a tank of fuel) thanks to a charging power of 1,000 kW (1 megawatt) and 400 km of range in just five minutes. Tesla's stock price fell more than 5% following BYD's announcement.
The performance of street vehicles driven by electric motors, with speeds of up to 30,000 rpm, has reached powers of 580 kW (789 hp) with a maximum speed of over 300 km/h.
The company
BYD is a high-tech company whose mission is to pursue "technological innovation for a better life." Its beginnings date back to 1995. Based on the production of rechargeable batteries for mobile phones, it quickly became the industry's leading supplier, providing inputs to giants such as Motorola Mobility, Nokia, LG Corporation, and Siemens AG.
In 2003, it entered the automotive industry by acquiring and renaming Xi'an Qinchuan Automobile, a struggling automaker. In 2008, Berkshire Hathaway, Warren Buffett's company, invested in BYD, marking a significant milestone and validating the company's potential.
In the following years, BYD focused on the innovation and production of electric vehicles, developing technologies such as the Blade battery and electric vehicle platforms. After 24 years of rapid development, it became the world's leading new energy vehicle brand.
Currently, BYD's businesses include electronics, cars, buses, electric trucks, electric bicycles, forklifts, and lithium, ferrophosphate, and sodium batteries. It also integrates industries such as new energy and rail transportation.
Infrastructure
BYD's largest factory, considered the world's largest vehicle manufacturing plant, is located in Zhengzhou, China. This facility, covering 130 square kilometers, is larger than cities like San Francisco or Barcelona and larger than Tesla's Gigafactory in Nevada.
This manufacturing center is not just a workplace, but rather resembles a city, with residential areas, recreational areas, and other services for workers. It initially had a capacity of 400,000 units per year, with plans to grow to 1,000,000 electric vehicles per year.
Investment and Development
BYD is listed on the Hong Kong and Shenzhen Stock Exchanges. Its revenue and market value exceed 100 billion yuan. It currently holds over 26,000 patents and is present in 70 countries and 400 cities. Its key technological advancements include the Blade Battery, the e-Platform 3.0, and Cell-to-Body technology.
Investment in R&D has allowed BYD introduce significant advancements, such as the world’s fastest mass-produced electric motor (23,000 rpm), available on the BYD SEALION 7 model. There’s also the cutting-edge DM-i (Dual Mode Intelligent) plug-in hybrid vehicle technology, which brings greater efficiency to consumers who may not yet feel ready to make the switch to 100% electric vehicles.
In November 2024, BYD produced its 10 millionth new energy vehicle, an unprecedented achievement in the industry. The company currently employs more than one million people worldwide and has more than 30 industrial parks strategically located across six continents.
From energy collection and storage to its application, BYD offers a comprehensive zero-emission solution using new energy sources. In the coming years, it plans to invest more than $20 billion in the European market alone.
Business Strategy
China's commercial offering has grown exponentially over the past 10 years. Numerous brands and models are available, despite being the world's largest market. BYD has initiated a price war that is declared extreme. BYD's philosophy is based on complete vertical integration and a comprehensive market strategy. BYD currently has dealerships in more than 70 countries and its models are present in more than 400 cities.
BYD Executive Vice President Stella Li's commercial vision has driven the company's success and international presence in just a few years.
Today, China leads global sales, with 130 brands competing domestically, registering more registrations than Europe and the United States combined. This is a worrying development for several Chinese companies due to the intense price competition in their own market, which analysts claim is unsustainable. On the other hand, domestic competition is driving companies like BYD to seek out new horizons in international markets.
BYD's main strategy is to offer its products at prices well below standards and gauge customer acceptance. With time-limited discounts of 50%, the company quickly enters international markets. The number of low-priced vehicles collapses the market and even encourages competitors to withdraw due to their inability to compete. This reasoning leads us to question BYD's method of maintaining these policies, pushing the company's financial situation to the limit.
Integrated Logistics
Another item to consider is the presence of Kaizen in the company's philosophy. BYD has 110,000 engineers are involved in research and development departments, focused on reducing waste by discovering new materials and applying new manufacturing technologies.
Its global vision led the company to establish operations in specific locations around the world, strategically locating its distribution centers and establishing faster connections between its main delivery points.
By integrating its core businesses (semiconductors, control systems, automobiles, new energy generation, and maritime and rail transport), BYD has achieved significant efficiencies in its supply chain, achieving near-complete vertical integration globally.
The company has its own land transport vehicles. Trucks and trains of various sizes are used depending on the distances to be traveled between supply points. BYD works with integrated logistics through its own ports and vessels. The loading and unloading capacity combined with state-of-the-art systems are key to ensuring the company's products reach their destination in record time.
By 2025, its focus is on exports, and to that end, the company is building its own vessels. The first is 200 meters long, 38 meters wide, has a cruising speed of 18.5 knots (equivalent to 34 km/h), and a cargo capacity of 7,000 vehicles. It is the BYD Explorer No. 1, which has already sailed around the world.
In addition, the company has discussed building seven more vessels over the next two years. To reduce emissions, the vessel uses a dual-fuel propulsion system that combines liquefied natural gas (LNG) with traditional fuel.
BYD's supply chain for the manufacturing, storage, and distribution of electric vehicles (EVs) is distinguished by its combination of vertical integration and intelligent automation. Seventy-five percent of its components are manufactured in-house, primarily including the following subassemblies:
Batteries that produces its own lithium iron phosphate (LiFePO4) batteries, such as the innovative “Blade Battery,” known for its safety and energy density.
Semiconductors and electronics, chips and control systems, covering 40% of external demand in addition to its own.
Integrated engines, powertrains and electric propulsion systems
The manufacturing method is based on highly automated plants and the use of Modular Platforms for its different products, which allows for high flexibility in the volumes to be produced.
This type of "Smart Factories" uses advanced robotics for assembly and IoT systems for the design of workstations where labor is involved. New models (full change model) are launched every two years, compared to three to five years for competitors, generally combustion-powered or hybrid cars.
The EV design is based on an e-Platform 3.0 platform where key components (batteries, chassis) are standardized to adapt to multiple models, achieving cost-efficient production.
Smart Warehousing and Logistics
BYD does not publicly and documentedly use a traditional WMS (Warehouse Management System). Instead, it integrates artificial intelligence, big data, and analytics platforms to optimize its supply chain and logistics. Its approach focuses on information management to predict demand, avoid bottlenecks, and make real-time decisions.
Artificial intelligence (AI) and big data: Uses AI-based predictive models to anticipate demand for its products, optimize inventory levels, and streamline distribution.
Analytics platforms: Integrate data from diverse sources, such as sales, inventory, and transportation, to gain a complete view of your supply chain.
Advanced connectivity: 5G and satellite connectivity enable real-time communication and remote system updates.
OTA (Over-the-Air) Updates: You can update your vehicle's software and systems remotely, improving functionality and safety over time.
"God's Eye": This driver assistance system combines artificial intelligence, computer vision, and deep learning to deliver an advanced autonomous driving system.
Global Distribution
BYD's electric vehicle distribution model is carried out through its own vessels. This represents a strategic innovation in supply chain development and constitutes a key pillar of its global strategy, combining comprehensive logistics control, sustainability, and aggressive commercial expansion.
BYD operates a fleet of roll-on/roll-off (Ro-Ro) vessels designed exclusively for transporting electric vehicles. Notable models include the BYD Shenzhen and the BYD Explorer No. 1, which boast innovative vehicle transport efficiency and feature the following:
Capacity: BYD Shenzhen, which carries 9,200 vehicles on 16 decks, is the largest in the world. The BYD Explorer No. 1 has a capacity of 7,000 vehicles.
Sustainable technology: Dual LNG (Liquefied Natural Gas) engines: Reduce emissions of sulfur oxides (99%) and nitrogen (85%).
Anti-fouling paint: Improves fuel efficiency by 8% by preventing adhesions to the hull.
Shaft generators: Convert excess energy into electricity for auxiliary systems.
BYD onboard batteries: Electrify auxiliary systems, reducing emissions in ports.
Logistics efficiency: Rapid loading/unloading via ramps (without containers), saving time and costs. Speed of 18.5 knots (34.3 km/h) for transoceanic routes.
Commercial Strategy in New Markets
Once BYD starts sales in a new country, its strategy is based on controlling the logistics process and reducing costs due to its self-sufficiency in transportation, which manages to avoid high rates from external shipping companies, reducing costs per vehicle by 30-40%.
This logistics structure provides great flexibility, allowing for faster deliveries and route adjustments based on demand, which is currently focused on Brazil, Europe, and Southeast Asia.
BYD has a Local Production and Assembly strategy, which allows it to avoid tariffs in local markets (e.g., factories in Brazil, Thailand, and Hungary) by using key components imported from China. The factories are built without partners, taking advantage of its financial solvency.
With very competitive prices and affordable models (e.g. BYD Seagull), and with high technological equipment, it penetrates markets in "friendly" countries that have low resistance to Chinese brands.
The Extended Warranty strategy is another competitive advantage, offering up to 8 years or 200,000 km on batteries to build confidence.
Lucas R. García
Nicolas Rueda www.linkedin.com/in/nicolásmrueda
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