BYD’s rapid rise is based on many years’ innovation, China’s supply chain sophistication

A retail store shop of BYD in Fukuoka, Japan. File photo: VCG

Editor's Note: 

As the Chinese economy, along with the global economy, faces challenges, some Western politicians and media outlets have intensified their smear campaigns against the world's second largest economy.

They cherry-pick information and distort facts to promote their narratives like "Peak China," while ignoring China's economic resilience and growth potential.

To set the record straight, the Global Times is launching a multimedia project featuring in-depth articles, objective analyses and visual arts to present a comprehensive and accurate picture of the Chinese economy. This is the 14th installment of the series.



Located at Xiaomo Town of the Shenzhen-Shanwei Cooperation Zone in Shenzhen, South China's Guangdong Province, the BYD Shenshan Industrial Park is a hub of innovation in electric vehicle (NEV) manufacturing.

The complete EV supply chains and the local government's favorable policies have instilled a greater sense of confidence and motivation for the companies to thrive, Global Times reporters learned from local CEOs and industry leaders during recent visits to the Guangdong-Hong Kong-Macao Greater Bay Area.

Shenzhen-based BYD Auto Industry Co has benefited from technical advancements made possible by this southern tech hub, which is home to a wide variety of manufacturers producing products from battery packs to charging piles.

The industrial park, 60 kilometers to the east of Shenzhen, is set to become a world-class auto production base. Apart from BYD, more than 20 EV-related companies, such as BWI, Lear-DFM Automotive Seating, France's Faurecia, and Gecko, have established a presence in the cooperation zone.

One new EV every minute

Upon arriving at the factory at Xiaomo after a swift high-speed train ride from Shenzhen North Station followed by a taxi journey, the Global Times reporters were greeted by the hum of heavy machinery and the sight of brand new BYD vehicles being transported to a nearby port. The industrial park, which began operations in September 2023, primarily manufactures BYD's high-end brands Yangwang and Dynasty series.

Operating at an impressive pace of one EV rolling off the production line every 60 seconds, the BYD auto industrial park in Shenshan has already reached its full capacity, with a daily output of 750 EVs.

To learn the operation at China's largest EV manufacturer, the Global Times reporters observed the production processes, including stamping, welding, painting, and final assembly.

The stamping factory, covering an area of 140,000 square meters, where body panels and structural parts are made, stood out with its state-of-the-art automated production line that can produce an impressive 13 car parts per minute, Luo Qiuming, an engineer at the workshop told the Global Times.

Moving on to the welding factory, the Global Times reporters were struck by the sight of dozens of robotic arms working in harmony to weld car parts together with precision. With an automation rate of 87 percent, the factory can complete a body-in-white every 58 seconds, aiming for an annual production capacity of 400,000 EVs. 

One of the spotlights in the welding factory is BYD's self-developed robotic arm. 

"This robotic arm is created by our own team, indicating the company's commitment to innovation and self-reliance, reducing dependence on foreign robotics manufacturers such as Germany's Kuka and Japan-based Fanuc," said Xia Yuechun, the manager in charge of the workshop.

Following the painting process, the final assembly factory is where all components are integrated together. Workers meticulously assemble the parts and conduct thorough quality checks before the vehicles roll off the production line. 

The factory showcases BYD's robust supply chain, with automotive suppliers scattered from East China's Fujian Province to East China's Jiangsu Province, providing components such as glass, weather stripping, and mudguards. Each new EV undergoes stress testing, dynamic testing, and rainwater testing before it's ready for delivery.

Manufacturing strength

Last year, Nikkei Business Publications, a Japanese business and technology media company and Swiss investment bank UBS separately hired engineers to tear apart and analyze BYD's electric vehicles (EV) SEAL model.

The UBS report attributed the car's exceptional performance and cost-effectiveness to its proprietary manufactured blade cells, high cell-to-pack integration ratio, unique battery management system, simple integration in the manufacturing process and improved crash safety.

Chinese analysts believe that such dissections, which are common practices in the industry, reflect a genuine recognition of China's automotive manufacturing capabilities. While foreign manufacturers can produce similar EVs, they cannot replicate China's scale and industrial ecosystem.

BYD's vertical integration manufacturing capability, honed from its experience in mobile phone battery manufacturing, sets it apart in the industry. The company's focus on core technologies, such as batteries, chips and motor development, allows it to compete in the global market at a lower cost, Liu Xueliang, general manager of BYD Asia-Pacific auto sales division, told the Global Times.

"The core competitiveness of Chinese EVs comes from mass manufacturing capability, rather than the assembly capabilities," Liu said. 

BYD has engaged in EV research and development, manufacturing, sales, and services, to offer comprehensive solutions to its customers. This approach allows for greater efficiency and cost saving through economies of scale, ultimately leading to increased profitability, said the company.

Going global

"After a long period of 'accumulation', auto export in China has entered the stage of explosive growth," Cui Dongshu, secretary-general of the China Passenger Car Association, told the Global Times. Cui believed that there is huge development scope for Chinese-made EVs.

"Made-in-China vehicles have not only expanded their reach, but are also improving in quality and gaining greater market recognition," Cui said.

Vehicles manufactured at the production base can be transported to the Xiaomo International Logistics Port in five minutes, and driven onto roll-on/roll-off ships for export, according to information published by the Shenzhen municipal government. Data shows that in 2023, a total of 20,000 vehicles were exported from the port.

In a bold move to expand its global presence, BYD, which overtook Tesla in the last quarter of 2023 as the world's leading seller of pure EVs, saw its exports grow by about 334 percent to over 240,000 units in 2023. The company has sold its products to more than 70 countries and regions in six continents, according to Xinhua News Agency.

The company's ambitious expansion plans in Southeast Asia, including the establishment of a manufacturing and assembly plant in Thailand and an EV manufacturing facility in Indonesia, signal its intent to reshape the global EV landscape.

In Japan, BYD's SEAL model has made a splash with its competitive pricing and leading safety features. According to Liu, the company's strategy in Japan is not to compete on price alone but to offer a vehicle that meets high-safety standards.

BYD's foray into the global market is not just about selling vehicles, it's about redefining the perception of Chinese automotive brands, he added.

Liu believe the previous low-cost strategy no longer defines the feature of China's EV market. "For the Chinese automotive industry, a more feasible positioning for going global is to enter the global market with high-quality cars, and find the right timing to introduce higher value-for-money products," Liu said.

Total sales of China's new-energy vehicles are expected to reach 11.5 million this year, up 20 percent over 2022, with the sector becoming a major driver of the economy, the China Association of Automobile Manufacturers (CAAM) said. China's total auto sales are estimated to hit 31 million units in 2024, an increase of 3 percent year-on-year.