BYD attributes its investment in R&D as one of its reasons why it’s growing at a rapid pace globally and how it’s able to roll out cutting-edge technologies at a much lower price point.
To recall, BYD’s global sales have reached 4.27 million vehicles—a 41 percent year-on-year increase, ranking fourth among all auto brands (almost matching Ford’s global total). Among that number, 1.76 million are pure EVs which is just as much as global leader, Tesla (1.79 million).
According to the world’s New Energy Vehicle (NEV) maker, one big reason for their growth is their continuous investment in R&D which has reached 54.2 billion yuan (USD 7.46 billion)—a year-on-year increase of some 36 percent. Even more remarkable, it’s far in excess of their net profit of 40.25 billion yuan (USD 5.55 billion).
In its 2024 financial report, BYD says that during the past 14 years (2011-2024), they’ve invested more in R&D than its net profit 13 times. Their cumulative investment in advancing its technology has already exceeded 180 billion yuan (USD 24.8 billion) and has resulted in features such as the fifth-generation DM hybrid system, the e-Platform 3.0 that underpins most of its current models, the DiSus intelligent body control system, and the recently announced Super e-Platform.
Since the start of 2024, BYD has made significant strides in electrification and intelligence, solidifying its leadership in the next phase of the automotive revolution.
Wang Chuanfu, BYD’s chairman and founder, said that the company plans to keep boosting R&D while bolstering its product competitiveness, including in its focus of succeeding outside of China, particularly in Southeast Asian markets such as the Philippines which are deemed “friendly towards Chinese brands.”
BYD’s overseas shipments jumped 72 percent last year to make up 10 percent of overall vehicle sales (414,204 units). The target in 2025 is to double that to 800,000 units.
To achieve that, BYD is expanding its manufacturing footprint, building factories in Thailand, Hungary, Turkey, and Brazil. It’s also planning to build one in Germany.
Wang also said that Chinese auto brands in the era of intelligence-led vehicles were no longer merely followers, but rather at the forefront of the trend. They’re “daring” to be first in the world, and now collaborate with other Chinese brands to go global.
And despite the added tech, Wang is confident that BYD’s profitability per vehicle would exceed Toyota’s when it reached the scale of the Japanese manufacturer, saying BYD’s cost control was better. This will help them launch “affordable smart driving technologies” globally by 2026 or 2027. More employees will be sent to overseas posts to make that happen.
This year, BYD has forecast it can sell between 5 million and 6 million vehicles. It’s already off to a strong start with sales in the first two months of 2025 up 93 percent year over year to 623,300.
They should invest in interior design
ReplyDeleteThose faux leather feels too much like plastic, even the HAN/Tang feels cheap inside but the price is close to BMW LMAO
With 107B US dollars in revenue at the back of a robust 4.27M units sold in 2024(42% growth vs. 2023) money is not a problem for BYD. Demand may reach more than 6M this year but the problem is the supply side. Many of the BYD factories will be operational by the end of the year or early next year yet. A few of my friends have been waiting for their units for a month now.
ReplyDeleteall auto companies must do R&D or else they will be left behind
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