What strategies does BYD implement to ensure market leadership in the EV industry and direct the global transition towards electric transportation?
Jordan Toogood, Yannick Steil, David Comor, Frederic Becker
Products and Services
Product and Service Overview
BYD Company
• Est. in 1995
• Headquarter in Shenzhen, Guangzhou
• Started as a battery producer
JV w/ Daimler to establish EV brand “Denza”
• BYD/Daimler: 50%/50%
• Est. in 2010
• Daimler took over partial operations of Denza in July 2019
JV w/ Toyota to establish BEVs under “Toyota bZ” brand
• BYD/Toyota: 50%/50%
• Est. in 2020
Unique Selling Point
Diverse Product Portfolio
- 20+ different EV models
- known for its affordability (~$9,000 to $35,000)
- EV’s accessible to middle-class consumers
Vertical Integration:
- produces its own lithium iron phosphate (LFP) batteries
- safety and longevity
- gives BYD an edge over competition
Subsidiaries
Unique Selling Point Comparison
and Factors
Comparing With Competitor Pricing
How can BYD maximize profit margins while still beating out other brands in affordability?
Government Intervention
What financial interventions, like taxes and tariffs, must BYD account for?
Graph below is not showing best selling models, wrong headline?
It's a bit confusing to show the three words in the middle without any context and then the four element at the bottom Which message do you want to convey?
What are the costs of resources and production like?
Customers and Target Group
Target Groups – B2B
• Government Organizations
• Police Forces
• Public Transport Authorities
• Large Corporations
• Large corporations with fleet needs
• Corporations looking to transition to EV’s
• Sustainability, cost savings, or carbon footprint reductions
Target Groups – B2C
• Mass
• Entire markets
• Broad audiences
• Utilizing affordability appeal and capturing markets.
• Upper Middle Class
• Newly targeting upper middle-class segments of various markets model to gain more high-end
Pros Cons
• Larger Transactions and Higher Volume
• Long-Term Contracts and Stability
• Potential for Global Reach and Impact
• Smaller Margins
• Long Sales Process
• High Dependency on Large Accounts
• Customization and Maintenance Needs
Pros Cons
• Larger Market Base and Consumer Demand
• Faster Sales Process
• Brand Loyalty and Word of Mouth
• Intense Competition in Consumer Market
• Price Sensitivity and Affordability
• Consumer Preferences and Market Dynamics
EV Market Environment
Megatrends Influencing Global EV Market Growth
Sustainability
• Reducing global CO2 emissions:
- EU 55% lower greenhouse gas emissions by 2030.
‘Euro 7’ vehicle standards.
• Government policies and incentives:
- Norway all-electric by 2025 50% lower road tax for EVs.
- Germany – up to €4000 purchase grant per vehicle.
• Corporate environmental sustainability goals:
- Strategic partnership between BYD and Uber 100,000 new BYD EVs to Uber platform. Technology
• Battery Technology Advancements:
- Increase energy density + decrease costs
• Improved charging infrastructure:
• EU 360% increase in EV charging points (2020-2023).
Consumers: BYD:
Environmental Awareness
- More conscious of carbon footprint
- Increased demand for sustainable vehicle options
Cost Savings
- Access to government incentives
- Cost savings on fuel:
Petrol in EU: 0.6€/l (2020) 1.2€/l (2022)
Self-Driving Capabilities
- Easier for autonomous vehicles to be electric: 79% consist of electric/hybrid cars
- Increased convenience
Market Penetration
• Growing global market Expand into Europe + US to match increased demand. (Digital marketing, product localisation)
R&D
• Vehicle and battery technology. April 2019 – JV with Toyota for electric vehicle R&D
Sustainability
• BYD’s mission to “create a better and more sustainable world”.
