BYD Auto
BYD Auto Co., Ltd. is the automotive subsidiary of BYD Company, a publicly listed Chinese multinational manufacturing company. It manufactures passenger battery electric vehicles and plug-in hybrid electric vehicles —collectively known as new energy vehicles in China—along with electric buses and electric trucks. The company sells its vehicles under its main BYD brand as well as its high-end brands, which are Denza, Fangchengbao and Yangwang.
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., 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 batteries, including BYD's proprietary Blade battery.
BYD is the best-selling car brand in China since 2023, after surpassing Volkswagen, which had held the title since the liberalisation of the Chinese automotive industry. In 2024, nearly 90 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. 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 founded BYD Auto after acquiring and renaming a dwindling small automotive manufacturing company, Xi'an Qinchuan Automobile, from a state-owned defense 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 was not 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 license 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 to 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 of research and development expenses as a result. Wang Chuanfu personally smashed the prototype to destroy it. The company instead developed the BYD F3 sedan, which entered production on 16 April 2005, with an affordable price tag of CN¥73,000. Bearing resemblance to the Toyota Corolla, but with a lower price, the F3 quickly gained popularity and became a successful model with over 63,000 units sold that year. The 100,000th F3 rolled off the assembly line on June 18, 2007, just 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 Chinese-built Mitsubishi Motors older engines, but within a few years, BYD Auto created its own engines by improving Mitsubishi Motors engine blueprints.
During its early years, BYD Auto achieved growth by reverse engineering competitors products and supplier parts, and maintaining strong control over costs. The first mass-produced passenger car from BYD, the BYD F3 is considered "a copycat" of the Toyota Corolla. The BYD F0 small car was described as "a clear copy" of the Toyota Aygo, and the BYD S8 has a similar appearance to the Mercedes-Benz SL-Class, which features an "almost identical" Mercedes-Benz CLK front-end and Renault Megane CC rear. Wang Chuanfu responded by claiming the company only uses "non-patented technologies". In 2009, the US government had been advised by its consulate general in Guangzhou, China that BYD uses an approach of "copying and then modifying car designs." However, according to the consul, BYD had modified the vehicles designs significantly enough to convince Chinese courts that the company has not infringed on patents.
In 2005, BYD Auto contributed 10% to BYD Company's revenue. As its automotive business grew, BYD Auto's contribution increased to 25% by 2006. In the first half of 2009, BYD Auto accounted for 55% of its parent company total revenue, marking it the first time it contributed more than half of the company's earnings. By 2008, BYD Auto owned two vehicle assembly manufacturing plants in Xi'an and in Shenzhen with a production capacity of 300,000 units per year, an R&D and testing center in Shanghai, and a moulding plant in Beijing.
After years of sales growth, widespread withdrawal of BYD dealerships were reported in large Chinese cities during 2010 due to excessively rapid expansion, limited model range, and internal competition that presented difficulties for dealers. It was exacerbated by BYD's focus on production capacity over quality. BYD responded by adjusting its annual production target from 800,000 to 600,000 vehicles, but fell short, reaching only 517,000 vehicles that year. In the subsequent three years, BYD shifted its attention to resolving concerns related to quality, dealership channels, and brand promotion.
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 and a top speed of. Later, BYD acquired a second BJ6490D, which was subsequently 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 called the BYD F3e. Based on the BYD F3, the car had an all-electric range of more than, and was planned to be produced within 3 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, an internal entity dedicated for 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 to become 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.
File:2008 BYD F3DM.png|thumb|The 2008 BYD F3DM at the BYD Museum. It is the first modern, mass-produced plug-in hybrid vehicle globally.
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. 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. 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.
File:Byd e6 crossover1.jpg|thumb|The BYD e6, showcased at the 2010 North American International Auto Show in Detroit, US
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 per charge with a top speed of, 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".