"To Popularize Electric Vehicles, We Should Refer to the Case of China's BYD"

Publication of Report Related to Hanjayeon

[Asia Economy Reporter Kiho Sung] To open the era of electric vehicle popularization, it has been advised to refer to the case of BYD, China's largest electric vehicle company, which is growing based on economic feasibility along with stable parts supply.

Hojoong Lee, Chief Researcher of the Research Strategy Headquarters at the Korea Automotive Technology Institute (KATRI), revealed this in the report titled "Why Focus on BYD's Growth," released on the 19th.

According to the report, BYD recently declared a complete transition to electric vehicles and completely stopped producing internal combustion engine vehicles from March this year. BYD began full-scale production of electric buses in 2010 and soon became the world's number one electric bus company. From January to July this year, BYD recorded electric vehicle sales of 410,000 units, ranking second in the world after Tesla (629,000 units).

The report analyzed that BYD's growth strategy is to comprehensively build the foundation necessary for the popularization of electric vehicles.

Notable examples include the development of the 'Blade Battery,' based on lithium iron phosphate (LFP) cathode material emphasizing safety and low cost, and the direct establishment of subsidiaries producing electrification-related parts such as drive motors and inverters.

In the autonomous driving field, BYD aimed to provide technology that is not inferior to industry standards to consumers by collaborating with companies like Baidu, rather than engaging in leading research that incurs high investment costs.

The report stated that BYD employs a so-called cost-effectiveness strategy that offers good quality at a low price based on its experience in complete vehicle manufacturing. Additionally, BYD is accelerating its entry into overseas markets by expanding cooperation with major automakers and promoting the 'Ocean' series.

In particular, BYD is exploring the possibility of contract manufacturing by expanding the supply of its own parts. It is known that BYD supplies its batteries for the Model Y produced at Tesla's German factory and produces the electric vehicle BZ3 together with Toyota as part of this plan.

The report predicted that if these collaborations prove successful, BYD is likely to become a contract manufacturer of low-cost electric vehicles in the mid to long term or expand joint development with other automakers.

The report concluded, "BYD's growth itself provides clues about a new driving force opening the era of electric vehicle popularization," and emphasized, "It is necessary to refer to BYD's growth strategies such as stable parts supply and cost-effectiveness."

This content was produced with the assistance of AI translation services.