In an article in the European Business Review, Prof. Dr. Xiangming Chen from CASSIS Bonn analyzes the remarkable rise of BYD (Build Your Dreams) to global leadership in the field of electromobility. Originally founded in 1995 as a battery manufacturer, BYD focused on cost-efficient and innovative production methods early on. Instead of fully automated processes like many Japanese competitors, BYD relied on manual production techniques. This strategy not only enabled flexible adaptation to new technologies, but also considerable cost savings without compromising on quality.
The transition from battery producer to leading EV manufacturer was accelerated by a vertically integrated supply chain, extensive expertise in battery technology and strong government support. BYD consistently invested in research and development and developed its own technologies, including proprietary chips and software solutions. This has given the company a decisive competitive advantage - especially in an increasingly globalized and competitive market.
Chen emphasizes that BYD's success is not only due to technological innovation, but also to a deep understanding of industrial scaling, strategic leadership and geopolitical dynamics. BYD shows how a Chinese company can become a dominant player in a future industry through skillful planning and adaptability.