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BYD Auto

Chinese automobile manufacturer

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BYD Zhengzhou All-Terrain Circuit entrance
iMoD Official · CC BY 3.0

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Through Manufacturing, Electric motor and Electric battery

BYD Auto was established in January 2003 as a subsidiary of BYD Company, a battery manufacturer, following the acquisition and restructuring of Xi'an Qinchuan Automobile. The first car designed by BYD, the petrol engined BYD F3, began production in 2005. In 2008, BYD launched its first plug-in hybrid electric vehicle, the BYD F3DM, followed by the BYD e6, its first battery electric vehicle, in 2009.

Since 2020, BYD Auto has experienced substantial sales growth that is driven by the increasing market share of new energy vehicles in China. The company has expanded into overseas markets from 2021, mainly to Europe, Southeast Asia, Oceania and the Americas. In 2022, BYD ended production of purely internal combustion engined vehicles to focus on new energy vehicles.

The company is characterised by its extensive vertical integration, leveraging BYD group's expertise in producing batteries and other related components such as electric motors and electronic controls. Most components used in BYD vehicles are claimed to be produced in-house within the group. As of 2024, BYD's battery subsidiary FinDreams Battery is the world's second largest producer of electric vehicle batteries behind CATL. It specialises in lithium iron phosphate (LFP) batteries, including BYD's proprietary Blade battery.

BYD has become the best-selling car brand in China in 2023, after surpassing Volkswagen, which had held the title since the liberalisation of the Chinese automotive industry. In 2025, nearly 77 percent of BYD's sales came from the Chinese market. BYD is also the third most valuable car manufacturer in the world, based on market capitalization. In 2025, BYD became the world's largest electric carmaker, overtaking Tesla, and overtook Ford to be 6th in total automobile sales.

The company has faced scrutiny and criticism related to its business practices, including allegations of aggressive price reductions, labor issues at its facilities, and various environmental concerns.

History

2003–2008: Establishment and early years

BYD Company was founded in 1995 as a battery manufacturer. In January 2003, BYD Company founder Wang Chuanfu established BYD Auto after acquiring and renaming a struggling small automotive manufacturer, Xi'an Qinchuan Automobile, from the state-owned defence company Norinco. The company was acquired for HK$269 million in exchange for a 77% stake, shortly after BYD raised HK$1.6 billion on the Hong Kong Stock Exchange in July 2002. The acquisition was met with disapproval from shareholders, as the plan had not been disclosed in the prospectus. Wang Chuanfu acquired Qinchuan with the intention of developing battery-powered electric vehicles, leveraging BYD's expertise in battery manufacturing. As Qinchuan had been manufacturing cars since 1987, the purchase gave BYD access to car manufacturing technology and an automobile production licence that was difficult to obtain at that time. At the time of the acquisition, Qinchuan was producing a small car called the QCJ7181 Flyer, which BYD renamed the BYD Flyer from 2005. Limited capacity at the former Qinchuan manufacturing plant in Xi'an, Shaanxi prompted BYD to construct a new manufacturing plant in the Xi'an Development Zone within the city.

The first car developed by BYD, codenamed 316, was rejected by dealers due to its poor styling and was scrapped before reaching the market, writing off CN¥100 million in research and development (R&D) expenses. Wang Chuanfu personally destroyed the prototype. The company instead developed the BYD F3 sedan, which entered production on 16 April 2005, with a price of CN¥73,000 (approximately US$10,000). Bearing a resemblance to the Toyota Corolla but offered at a lower price, the F3 gained popularity and became a successful model, with over 63,000 units sold in its first year. The 100,000th F3 rolled off the assembly line on 18 June 2007, 20 months after production began. Following this success, the larger BYD F6 sedan, modelled after the Honda Accord, entered production in August 2007. Initially, BYD cars were equipped with older Mitsubishi Motors engines manufactured in China, but within a few years BYD Auto developed its own engines by modifying Mitsubishi engine designs.

During its early years, BYD Auto achieved growth by reverse engineering competitors' products and supplier parts, and by maintaining tight control over costs. The BYD F3, the company's first mass-produced passenger car, has been described as "a copycat" of the Toyota Corolla. The BYD F0 was described as "a clear copy" of the Toyota Aygo, and the BYD S8 bears a similar appearance to the Mercedes-Benz SL-Class, with an "almost identical" Mercedes-Benz CLK front end and a Renault Mégane CC rear. Wang Chuanfu responded by stating the company used only "non-patented technologies". In 2009, the United States government was advised by its consulate general in Guangzhou that BYD employed an approach of "copying and then modifying car designs." However, according to the consul, BYD had modified the vehicle designs sufficiently to satisfy Chinese courts that no patents had been infringed.

In 2005, BYD Auto contributed 10% of BYD Company's total revenue. As its automotive business expanded, this share rose to 25% by 2006. In the first half of 2009, BYD Auto accounted for 55% of the parent company's total revenue, the first time its automotive division had contributed more than half of overall earnings. By 2008, BYD Auto operated two vehicle assembly plants in Xi'an and Shenzhen with a combined production capacity of 300,000 units per year, alongside an R&D and testing centre in Shanghai and a moulding plant in Beijing.

Following years of sales growth, widespread withdrawal of BYD dealerships was reported in major Chinese cities during 2010, attributable to excessively rapid expansion, a limited model range, and internal competition that created difficulties for dealers. The situation was compounded by BYD's emphasis on production capacity over product quality. In response, BYD reduced its annual production target from 800,000 to 600,000 vehicles; however, actual output fell short of the revised target, reaching only 517,000 units that year. Over the subsequent three years, BYD redirected its focus toward resolving concerns related to quality, dealer channel management, and brand development.

2006–2020: New energy vehicle efforts and sales stagnation

BYD began exploring hybrid and electric vehicles as early as 1997, before acquiring Xi'an Qinchuan Automobile. In that year, Wang Chuanfu, as part of his research into electric vehicles, purchased a BJ6490D, an electric car made by Beijing Second Auto Works that was built off an imported knock-down kit of the Holden Commodore VN station wagon. The BJ6490D was powered by golf cart batteries, with a range of about 100 km (62 mi) and a top speed of 92 km/h (57 mph). Later, BYD acquired a second BJ6490D, later converted into a hybrid vehicle.

At the 2004 Beijing Auto Show, alongside its petrol-powered concept cars, BYD unveiled the BYD Flyer EF3, an electric sedan. Based on the BYD Flyer, the Flyer EF3 was initially intended for production in 2005, with a focus on serving as a taxi in Shenzhen. However, this plan did not materialise. Two years later at the 2006 Beijing Auto Show, BYD showcased another electric car, the BYD F3e. Based on the BYD F3, it had an all-electric range of more than 300 km (186 mi), and was planned to be produced within three years from 2007. In December 2010, a BYD Auto general manager confirmed that the company had cancelled plans for its production due to the lack of support in charging infrastructure.

In 2006, BYD established the Electric Vehicle Research Institute, dedicated to the R&D and trial production of parts for new energy vehicles and the whole vehicle, including battery electric vehicles and plug-in hybrid vehicles.

In 2008, Wang Chuanfu set a goal for the company to become the leader in the Chinese automotive market by 2015, and the largest car manufacturer globally by 2025. Wang stated that electric vehicles would serve as BYD's "stepping stone" to skip the development of internal combustion engine vehicles and facilitate the company's entry into international markets, including Europe and North America.

In March 2008, the plug-in hybrid electric version of the BYD F3, the F3DM, was introduced as the world's first production model plug-in hybrid car at the Geneva Motor Show in Switzerland. Initially, the F3DM was offered in China as a fleet vehicle for governments, banks and other institutions, until retail sales started in March 2010 when the Chinese government started granting subsidies for new energy vehicles as part of the Government’s overall total R&D investment of 230 billion. The vehicle had low sales, with only 100 units sold by 2011.

In January 2009, BYD introduced its first production battery electric vehicle, the e6 at the 2009 North American International Auto Show in Detroit. It is powered by a battery pack codenamed "Fe", which provides a claimed electric range of 400 km (249 mi). While plans to sell the vehicle to the general public in the US were shelved, the company sold the e6 in the US as a fleet vehicle in a limited number.

In May 2009, Volkswagen AG considered forming a partnership with BYD in the area of hybrids and electric vehicles, having signed a memorandum of understanding. Volkswagen withdrew from the partnership after conducting due diligence.

In July 2009, BYD acquired Hunan Midea Coach Company, a bus manufacturer based in Hunan, allowing it to manufacture buses and coaches and enter the commercial vehicle market. The plant in Changsha, Hunan, reportedly received a CN¥ 3 billion investment for development. BYD started producing battery electric buses as part of a pilot scheme initiated by the Chinese government. It signed a deal to supply 1,000 BYD K9 electric buses to the Hunan Government in China. The buses have a range of 305 km (190 mi) per charge with a top speed of 70 km/h (43 mph), a charging time of six hours and 50% fast charging in 30 minutes.

In 2010, BYD Auto Industry Co., Ltd. and Daimler AG, now known as Mercedes-Benz Group AG, formed a 50-50 joint venture named Shenzhen BYD Daimler New Technology with a brand named Denza to focus on research and development of new energy vehicles. The brand showcased a concept car called the Denza EV at Auto China in April 2012. Denza was later restructured in 2021, when BYD took control of the brand by taking a 90% stake in the venture. Mercedes-Benz withdrew entirely from the joint venture in September 2024.

In August 2013, BYD launched the Dynasty Series product line with the introduction of the BYD Qin, a plug-in hybrid electric vehicle variant of the petrol-engine BYD Surui. The Qin was designed to replace the BYD F3DM, an earlier plug-in hybrid model. The Qin quickly became the best-selling plug-in electric vehicle of early 2014.

In November 2016, the company hired Wolfgang Egger as BYD Auto's head of design. Egger, who built his career at Alfa Romeo, Audi, and SEAT, created his first design for BYD, the Dynasty concept, a concept electric SUV that was displayed at the 2017 Shanghai Auto Show and previewed the design of the second-generation BYD Tang.

Before 2020, BYD heavily relied on government subsidies to generate profit from its plug-in hybrid and battery electric vehicles. In 2016, the company received approximately US$1 billion in new energy vehicle subsidies, surpassing its net profit for that year, and accounted for over 20% of BYD's US$5 billion in revenue from new energy vehicle sales that year. Rhodium Group estimates that BYD received approximately US$4.3 billion in state support between 2015 and 2020.

Between 2017 and 2019, BYD faced challenges due to a reduction in government subsidies. This led to a significant slowdown in sales and a sharp decline in net profit over three consecutive years. In 2019, the company's net profit dropped to only CN¥1.6 billion. During this period, Wang Chuanfu stated that the company's primary goal was merely "to survive".

2020–present: rapid growth and global expansion

BYD experienced a substantial surge in vehicle sales from 2020 to 2024. The company sold 4,272,145 vehicles globally in 2024, a ten-fold increase compared to the 2020 figure of 427,302 vehicles. The increase was partly attributed to the increasing popularity of new energy vehicles in China, which accounted for 27.5% of vehicle sales in China in 2022, up from 5.8% in 2020.

BYD introduced its first vehicle equipped with the Blade battery, the BYD Han large sedan, in early 2020. The Han went on sale in July 2020 with an option of plug-in hybrid electric (Han DM) and battery electric (Han EV) variants. The range-topping variant of the Han EV was claimed to be the fastest electric car in China, while the DM version was the fastest hybrid sedan. BYD announced its entry to the European passenger car market in May 2020, starting with Norway. The first batch of 100 BYD Tang EVs equipped with the Blade battery were sent to Norway in June 2021.

In April 2021, BYD introduced the e-Platform 3.0, a third-generation platform for battery electric vehicles that integrated and standardised core components along with a new body structure, new electrical architecture, and operating system. The platform began production starting with the BYD Dolphin and the BYD Yuan Plus that were announced in August 2021. It also established the Ocean Series line of products, which consists of models named after marine animals. In December 2021, Daimler AG reduced its stake in its joint venture brand with BYD Auto from 50% to 10%, with BYD Auto controlling 90%. BYD refreshed Denza's line-up with the release of the Denza D9 minivan in 2022, followed by the Denza N7 SUV in 2023. In March 2022, BYD ended the production of pure internal combustion engine vehicles.

In January 2023, BYD established its second premium brand called Yangwang by introducing the Yangwang U8 plug-in hybrid electric large SUV, and the Yangwang U9 battery electric supercar. The company further expanded its brand portfolio by introducing the Fangchengbao brand in June 2023, which focuses on off-road vehicles.

In April 2023, BYD released its smallest and cheapest battery electric vehicle called the Seagull. It features a 4-seater, 5-door configuration in a hatchback body style, while being priced in a segment dominated by smaller 3-door cars. The car became a sales success in China. On 29 November 2023, BYD produced the 200,000th Seagull after only seven months in the market. Due to its low cost of production and its low selling price at below CN¥90,000 or US$12,000, the Seagull has garnered curiosity and praise from international media and industry experts.

While celebrating BYD's 5,000,000th new energy vehicle production in August 2023, Wang Chuanfu called on local Chinese car manufacturers to "unite" to take on foreign manufacturers, responding to the severe price war in the Chinese market throughout 2023. Wang claims that it is "an emotional need for the 1.4 billion Chinese people to see a Chinese brand becoming global," and initiated a campaign titled "Together, we are Chinese autos" (Chinese: 在一起,才是中国汽车). The call was welcomed by the CEOs of Nio and Li Auto.

On 18 November 2024, BYD held an event in Shenzhen to celebrate its 30th anniversary and becoming the first automaker globally to produce 10,000,000 new energy vehicles. The milestone vehicle was a Denza Z9.

In early 2023 and early 2024, BYD introduced the Champion Edition and Honor Edition versions of its models, respectively, featuring price reductions aimed at expanding market share in the Chinese market. The strategy contributed to an intensified price war in the market, prompting Chinese authorities to advise BYD to avoid further price reductions. In response, on 10 February 2025, BYD introduced Smart Driving Edition versions across 21 models, featuring enhanced advanced driver assistance systems (ADAS) marketed as TianShen, including city-level NOA (Navigate on Autopilot), with prices starting at 100,000 yuan. The update aims to offer additional features without increasing prices.

In July 2025, BYD recorded its first monthly delivery drop of the year, shipping 341,030 vehicles compared with 377,628 in June, and nearly flat versus the same month in 2024. In the second quarter of 2025, BYD posted its first profit decline in more than three years, with net income down 29.9% year-on-year to 6.4 billion yuan. In September 2025, BYD announced internally and to its suppliers had cut its annual sales target by up to 16% to 4.6 million units, down from the 5.5 million originally guided in March. Wang Chuanfu stated the reason for the sales drop was because BYD's technological lead were not as strong as the previous years, and promised to launch "major technological announcements" in 2026. Despite the cut, by the end of 2025, BYD had overtaken Ford Motor Company in terms of vehicles sold per year. The "major technological announcements" were revealed in March 2026, which included the second-generation Blade battery alongside an ultra-fast "Flash Charging" technology, enabling compatible vehicles to charge from a 10% to 70% state of charge in 5 minutes, and from 10% to 97% in 9 minutes.

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