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BYD Auto

Ch. 1 of 8
— CH. 1 · INTRODUCTION —

Contents

BYD Auto

8 sections
  • BYD Auto once wrote off CN¥100 million of research spending on a car that never reached a showroom. Dealers had rejected the prototype, codenamed 316, because of its poor styling. Wang Chuanfu, founder of the parent company, then destroyed it with his own hands.

    That moment sits at the start of the story of BYD Auto, the car-making arm of a Chinese manufacturing group that began as a battery maker. Today the company sells sedans, hatchbacks, SUVs, buses and trucks in dozens of countries.

    How does a battery company learn to build cars, and who pays for the lessons? What happens when a rival accuses you of copying, and your answer is that the technology was not patented? And why can the same electric car earn far more profit on a European street than on a Chinese one?

  • BYD raised HK$1.6 billion on the Hong Kong Stock Exchange in July 2002. Shortly afterwards it bought a struggling carmaker, a plan that its prospectus had never disclosed. Shareholders disapproved.

    The target was Xi'an Qinchuan Automobile, owned by the state defence company Norinco. BYD paid HK$269 million for a 77% stake, and in January 2003 Wang Chuanfu set up BYD Auto. His aim was battery-powered electric vehicles, built on the group's battery expertise. Qinchuan had been making cars since 1987, so the purchase also brought manufacturing technology and a production licence that was hard to obtain at the time.

    The car that came with the deal was a small model called the QCJ7181 Flyer, which BYD renamed the BYD Flyer from 2005. The old plant in Xi'an, in Shaanxi, had limited capacity. BYD therefore built a new factory inside the city's Xi'an Development Zone.

    The BYD F3 sedan entered production on the 16th of April 2005, priced at CN¥73,000, or about US$10,000. Buyers took to it, and more than 63,000 were sold in its first year. The 100,000th F3 left the line on the 18th of June 2007, twenty months after production began. In August 2007 the larger F6 sedan followed, modelled after the Honda Accord.

    Early BYD cars ran on older Mitsubishi engines made in China. Within a few years the company was building its own engines, adapted from Mitsubishi designs.

    The car business grew steadily inside the group. It supplied 10% of BYD Company's revenue in 2005 and 25% in 2006. By 2008 BYD Auto ran two assembly plants, in Xi'an and Shenzhen, with combined capacity of 300,000 units a year. It also had an R&D and testing centre in Shanghai and a moulding plant in Beijing. In the first half of 2009 cars brought in 55% of group revenue, the first time the automotive division had contributed more than half.

  • Critics have called the BYD F3, the company's first mass-produced passenger car, "a copycat" of the Toyota Corolla. The small BYD F0 was described as "a clear copy" of the Toyota Aygo. The BYD S8 drew the most elaborate comparison. Its overall look resembled the Mercedes-Benz SL-Class, with a front end called "almost identical" to the Mercedes-Benz CLK and a rear that echoed the Renault Mégane CC.

    Wang Chuanfu replied that the company used only "non-patented technologies".

    In 2009 the United States government was advised by its consulate general in Guangzhou that BYD took an approach of "copying and then modifying car designs." The consul added that BYD changed the designs enough to convince Chinese courts that no patents had been infringed.

    Copying was part of how the company grew. In its early years BYD reverse engineered competitors' products and supplier parts, and it held costs tightly.

    Even the badge drew complaints. BYD Auto's first logo, used from 2003 to 2007, was blue and white to stand for sky and clouds. Critics said it looked like the BMW roundel. When the BYD F1 arrived, later renamed the F0, the carmaker switched to its parent company's logo.

  • In 1997, six years before it owned a carmaker, Wang Chuanfu bought a BJ6490D for his research into electric cars. Beijing Second Auto Works had built it from an imported kit of the Holden Commodore VN station wagon. It ran on golf cart batteries, with a range of about 100 km and a top speed of 92 km/h. BYD later bought a second one and converted it into a hybrid.

    At the 2004 Beijing Auto Show, BYD unveiled the Flyer EF3, an electric sedan intended for production in 2005 as a taxi in Shenzhen. That plan did not materialise. The 2006 show brought the F3e, with an all-electric range above 300 km, planned for production within three years from 2007. In December 2010 a BYD Auto general manager confirmed it was cancelled because charging infrastructure was lacking.

    In 2006 BYD founded an Electric Vehicle Research Institute for new energy vehicle parts and whole vehicles. In 2008 Wang set two goals: to lead the Chinese car market by 2015 and to be the largest carmaker in the world by 2025. He called electric vehicles a "stepping stone" that would let BYD skip the development of combustion engines and enter markets such as Europe and North America.

    The F3DM was shown at the Geneva Motor Show in Switzerland in March 2008 as the world's first production plug-in hybrid car. It first went to governments, banks and other institutions as a fleet vehicle. Retail sales began in March 2010, when Chinese subsidies for new energy vehicles started. Even so, only 100 had sold by 2011.

    In January 2009 BYD presented the e6, its first production battery electric vehicle, at the North American International Auto Show in Detroit. A battery pack codenamed "Fe" gave it a claimed range of 400 km. Plans to sell it to the American public were shelved, and a limited number went to US fleets. In May 2009 Volkswagen AG signed a memorandum of understanding about a partnership on hybrids and electric vehicles, then withdrew after due diligence.

    July 2009 brought a new line of business. BYD bought Hunan Midea Coach Company, a bus maker, and started building battery electric buses under a Chinese government pilot scheme. It signed a deal to supply 1,000 K9 electric buses to the Hunan Government. Each had a range of 305 km per charge and a charging time of six hours.

    In August 2013 the Qin plug-in hybrid arrived to replace the F3DM. It quickly became the best-selling plug-in electric vehicle of early 2014.

    Meanwhile the petrol-car business had stumbled. In 2010 dealerships withdrew from major Chinese cities, a retreat blamed on overly rapid expansion, a limited range of models and competition between BYD's own dealers. The company had also put capacity ahead of quality. BYD cut its annual target from 800,000 vehicles to 600,000, yet it built only 517,000 that year. Over the next three years it turned to quality, dealer management and brand building.

    Much of the electric push ran on public money. In 2016 BYD received about US$1 billion in new energy vehicle subsidies. That was more than its net profit for the year, and over 20% of the US$5 billion it earned from such vehicles. Rhodium Group estimates that state support reached about US$4.3 billion between 2015 and 2020.

    Then the support shrank. From 2017 to 2019 reduced subsidies slowed sales and cut net profit sharply for three years in a row. By 2019 net profit had fallen to just CN¥1.6 billion. Wang Chuanfu said the company's main goal was simply "to survive".

  • BYD sold 427,302 vehicles worldwide in 2020. By 2024 it sold 4,272,145, a ten-fold increase. Part of the lift came from the market itself, since new energy vehicles grew from 5.8% of Chinese vehicle sales in 2020 to 27.5% in 2022.

    The Han large sedan opened the new era. It was the first BYD with the Blade battery, introduced in early 2020 and on sale from July as the plug-in hybrid Han DM and the battery electric Han EV. BYD claimed the top Han EV was the fastest electric car in China and the DM the fastest hybrid sedan. In March 2022 the company stopped making vehicles powered purely by combustion engines.

    In August 2023 BYD celebrated its 5,000,000th new energy vehicle. Wang Chuanfu used the occasion to call on Chinese car makers to "unite" against foreign rivals, in the middle of a severe price war. He called it "an emotional need for the 1.4 billion Chinese people to see a Chinese brand becoming global". The campaign was titled "Together, we are Chinese autos", and the chief executives of Nio and Li Auto welcomed it.

    On the 18th of November 2024 BYD held an event in Shenzhen for its 30th anniversary. It marked the first automaker anywhere to build 10,000,000 new energy vehicles. The milestone car was a Denza Z9.

    Rankings followed the volume. In 2023 BYD became the best-selling car brand in China, passing Volkswagen, which had held that title since the Chinese car industry was liberalised. In 2025 it overtook Tesla as the world's largest electric carmaker and overtook Ford to rank sixth in total automobile sales. It is also the third most valuable carmaker by market capitalisation. Nearly 77 percent of its 2025 sales came from China.

    Price cuts powered some of that growth. The Champion Edition of early 2023 and the Honor Edition of early 2024 carried lower prices to win market share. That intensified the price war, and Chinese authorities advised BYD to avoid further cuts. On the 10th of February 2025 the company answered with Smart Driving Edition models, offering better driver assistance without higher prices, starting at 100,000 yuan.

    Then the pace slipped. In July 2025 BYD shipped 341,030 vehicles, down from 377,628 in June, its first monthly drop of the year. In the second quarter net income fell 29.9% to 6.4 billion yuan, the first profit decline in more than three years. In September BYD cut its annual sales target by up to 16% to 4.6 million units, down from the 5.5 million guided in March. Wang said its technological lead was weaker than in earlier years and promised "major technological announcements" in 2026.

  • On the 29th of November 2023 BYD built its 200,000th Seagull, only seven months after the car went on sale in April. The Seagull is the company's smallest and cheapest battery electric car, a four-seat, five-door hatchback priced below CN¥90,000, or US$12,000. It sells in a segment dominated by smaller three-door cars, and international media have shown curiosity and praise.

    For personal buyers the main BYD brand sorts its cars into series. The Dynasty Series carries dragon-inspired design and aims at older customers, with nameplates such as Xia, Han, Tang, Qin, Song and Yuan. The Ocean Series follows a concept called Ocean Aesthetics, with waves and flowing lines, and appeals to younger buyers. Most Ocean models carry marine animal names, including Seagull, Dolphin, Seal and Sealion. Two were named after warships, the Frigate and the Destroyer, and in 2025 BYD began merging them into the Sealion and Seal names. Fleet cars for taxis and ride-hailing fall under the "e" Series, begun by the e6.

    Denza was established in May 2010 as a joint venture with Mercedes-Benz Group, then called Daimler AG. Its first model, the Denza 500, was based on an earlier Mercedes-Benz B-Class. After years of low sales, Daimler cut its share from 50% to 10% in 2021. The D9 minivan followed in 2022, then the N7 SUV. In September 2024 Mercedes-Benz handed over its last 10%, leaving Denza wholly owned by BYD.

    Yangwang was announced on the 5th of January 2023 at the Guangzhou Auto Show. It targets prices above CN¥1 million, roughly US$140,000. Its first model, the U8, is an off-road plug-in hybrid SUV described as amphibious. The U9 is a battery electric supercar. Fangchengbao, announced on the 9th of June 2023, focuses on off-road vehicles. Its first model, the Bao 5, debuted at the Chengdu Auto Show on the 16th of August 2023. Linghui is the fifth brand. It serves taxis and ride-hailing with its own logo and sales channels, and its first cars are rebadged BYD models.

    The letters BYD mean nothing in particular. Since the 2008 North American International Auto Show the company has used the slogan "Build Your Dreams". From the second-generation Tang in 2017, that slogan replaced the oval logo on the back of its cars. In late 2023, after widespread criticism, BYD dropped the badge for the plain three-letter logo.

    Marketing reached further afield. In December 2016 BYD signed the American actor Leonardo DiCaprio as global brand ambassador for new energy vehicles. In January 2024 it replaced Volkswagen as mobility partner of the UEFA European Football Championship. CONMEBOL named it an official partner of the 2024 Copa América in May. In October 2024 BYD became the exclusive automotive partner of the action role-playing game Black Myth: Wukong.

  • BYD says that when a nail is driven through its Blade battery, the battery gives off no smoke or fire. In the same test, it says, a three-layered lithium battery heats past 500 °C and catches fire. The Blade is a lithium iron phosphate battery made by FinDreams Battery, a BYD Company subsidiary, and is claimed to be thinner and safer than typical electric car batteries. Since April 2021 every BYD battery electric vehicle has carried one, and other car companies have used it too.

    BYD's plug-in hybrids use a system called DM, for dual mode. The second generation arrived in 2013, pairing a 1.5-litre turbocharged four-cylinder engine with a six-speed dual-clutch transmission and offering EV, HEV and ICE driving modes. In February 2021 the fourth generation debuted, split into DM-i for efficiency and DM-p for performance. The first DM-i cars were the Qin Plus DM-i, Song Plus DM-i and Tang DM-i.

    DM-i pairs an electric motor with a petrol engine marketed as Xiaoyun. That engine has a compression ratio of 15.5 and a brake thermal efficiency of 43%, claimed to be the highest of any production petrol engine. In May 2024 a fifth generation launched on the Qin L and Seal 06 DM-i. BYD claimed an engine thermal efficiency of 46.06%, fuel use of 2.9 l/100km and a combined range of 2100 km.

    The battery electric cars sit on modular platforms. The e-Platform 2.0, introduced in 2018, was summed up by the numbers 33111, a shorthand for its integrated drive and high-voltage systems. The e-Platform 3.0 followed in April 2021, with doubled torsional stiffness, an 8-in-1 drive module and claimed ranges beyond 1000 km. Its first cars, the Dolphin and Yuan Plus, were announced in August 2021, and the Dolphin began the Ocean Series. The newest Super e-Platform runs at 1000 V and includes the first mass-produced electric motor that spins at 30,000 rpm. Its peak output is 580 kW at a maximum of 30,511 revolutions per minute. The Han L EV and Tang L EV were the first cars built on it, with acceleration as quick as 2.7 seconds.

    In March 2025 BYD announced a 1,000 kW charging system. It claims about 400 km of range in five minutes, roughly 2 km for every second plugged in. Liquid-cooled cables carry the current, and the stations include energy storage so they can ease demand on the grid. BYD planned over 4,000 such chargers across China, with around 500 stations in the first rollout.

    March 2026 brought the second-generation Blade battery and Flash Charging stations rated at 1,500 kW. A compatible car can charge from 10% to 70% in five minutes and from 10% to 97% in nine. At minus 20 degrees Celsius, charging from 20% to 97% takes 12 minutes. At minus 30 degrees Celsius it takes only three minutes longer than at room temperature.

    Inside the cabin, BYD's DiLink system is based on Android and has rotatable screens. One feature is karaoke, which lets passengers sing through a microphone. BYD was one of the first brands in China to include it. By February 2025 the TianShen driver assistance system was standard on 21 of 30 BYD cars, including the Seagull. The top tier, TianShen A, is used on Yangwang vehicles and has three LIDAR sensors. The basic tier, TianShen C, fits mainstream cars priced under 200,000 RMB, with 12 cameras and five millimetre-wave radars.

    On the 28th of May 2026 Wang Chuanfu presented the Xuanji A3. BYD calls it its 567th automobile-grade chip and its first in-house assisted driving chip, and the first automotive-grade 4nm assisted driving chip in China. BYD Semiconductor designed and tested it, and its CPU has 16 cores. Mass production has already begun.

  • BYD's first export came in 2005, when it showed the Flyer hatchback at the Moscow International Motor Show and began exporting to Russia. In 2009 it added Africa, South America and the Middle East. A faster push began in 2021, built around passenger electric cars.

    Norway was the starting point in Europe. In May 2020 BYD announced it would sell passenger cars there, chosen for the country's widespread adoption of electric vehicles. The first batch of 100 Tang EVs was shipped to Norway in June 2021. By 2023 BYD exported over 242,766 passenger new energy vehicles, a rise of 334 percent in a year, and sold in over 70 countries. In 2024 it sold 417,204 vehicles overseas. Stella Li, an executive vice president, said BYD aims to deliver half its output outside China. An analyst from Bloomberg Intelligence China thought that unlikely before 2030 or later.

    Europe pushed back. In September 2023 the European Commission announced an anti-subsidy investigation into Chinese electric carmakers including BYD. Ursula von der Leyen argued that state subsidies kept Chinese prices artificially low. BYD Europe's managing director, Michael Shu, credited "management efficiency" and "unique technology" instead. In June 2024 the Commission added a 17.4% import duty on top of the existing 15%, effective from the 4th of July 2024.

    The tariffs have not made Europe unprofitable. Research by the Rhodium Group found BYD sells there at a 92-112% markup over its Chinese prices. On the Seal U, that means about €14,300 profit per car in the EU against €1,300 in China. Reuters noted the Atto 3 costs US$19,283 in China and US$42,789 in Germany. In April 2025 BYD's electric car sales in Europe passed Tesla's.

    Building locally is the other answer to tariffs. The Rayong plant in Thailand opened on the 4th of July 2024, the same day BYD produced its 8,000,000th new energy vehicle. It is the company's first wholly owned facility outside China, with a planned 10,000 workers. In August 2025 it began shipping the Dolphin to Europe to avoid import tariffs on China-built electric cars. In Hungary, BYD is building its first European passenger car factory in Szeged, the first Chinese maker to plan one. In Turkey, a US$1 billion factory agreement was signed by Wang Chuanfu and minister Mehmet Fatih Kacır on the 8th of July 2024.

    Not every plan survived. In July 2023 India cancelled a US$1 billion investment plan with Megha Engineering after government scrutiny citing security concerns. In Malaysia, by March 2026 BYD was reconsidering its Tanjong Malim assembly plant. Conditions included exporting 80% of vehicles, 40% localised components and a minimum domestic price of RM100,000 to protect Proton and Perodua. In Brazil, work on a former Ford plant in Camaçari, Bahia, stopped before Christmas 2024. The Brazilian Ministry of Work accused the construction company of breaking labour laws and holding workers in "slavery-like conditions".

    The road also had smaller bumps. On the 11th of June 2023 three BYD showrooms and a service centre in Hong Kong were vandalised with red paint. Police arrested 13 people twelve days later. In Australia, the Atto 3 launch slipped a month to November 2022 because its centre rear child restraint anchor did not meet the Australian Design Rules. It still became the second-best-selling electric vehicle there that year, behind only the Tesla Model 3.

    Some markets were won by fitting in. Every BYD model in Japan uses the CHAdeMO charging standard. In 2022 BYD held 70% of Japan's electric bus market. In Singapore it registered 11,184 cars in 2025, or 21.2% of new registrations, the top-selling brand for the second year running. In the United States, Stella Li said in February 2024 that BYD was not planning to sell passenger cars. Its buses are built in Lancaster, California.

    The next test is the BYD Racco, unveiled at the 2025 Japan Mobility Show. It is the first purpose-built kei car from a non-Japanese manufacturer, to be built in China, with sales scheduled for summer 2026.

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Updated

Common questions

How did BYD Auto begin?

BYD Company, a battery maker, established BYD Auto in January 2003 after buying a 77% stake in Xi'an Qinchuan Automobile from the state defence company Norinco for HK$269 million.

What is the Blade battery?

It is a lithium iron phosphate battery made by FinDreams Battery, a BYD Company subsidiary. BYD claims it is thinner and safer than typical electric car batteries, and other car companies have used it.

Why were BYD's early cars called copies?

Critics compared the F3 to the Toyota Corolla, the F0 to the Toyota Aygo and the S8 to Mercedes-Benz and Renault designs. Wang Chuanfu said BYD used only non-patented technologies.

How many vehicles did BYD sell in 2024?

BYD sold 4,272,145 vehicles worldwide in 2024, ten times its 2020 total of 427,302.

Does BYD sell passenger cars in the United States?

In February 2024 Stella Li said BYD was not planning to sell electric passenger cars in the US. It does build electric buses at a plant in Lancaster, California.

All sources

511 references cited across the entry

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