Major automotive manufacturers have released their "report cards" for the first half of 2024. showcasing revenue and profit figures that act as signals guiding market trends, capturing widespread attention. Among them, BYD shines brightly, with revenue surpassing 300 billion yuan and net profits exceeding 10 billion yuan, firmly establishing itself as a "top student."
However, even a "top student" has operations that leave people puzzled. BYD's per-vehicle profit appears somewhat "low-key" on the rankings, and even more surprising is their extravagant spending of 20.2 billion yuan on R&D in the first half of this year—an amount significantly higher than their net profit. Where is all this money going? Is BYD playing a much larger game?
Entering BYD's R&D center feels like stepping into an ocean of technology, with over 110.000 engineers pouring their efforts into innovation, many of whom come from leading universities and research institutions around the world. It's said that a motto circulates within BYD: "There's nothing we can't achieve if we can think of it."
BYD's significant investment has resulted in a series of impressive technological breakthroughs. Their blade battery, true to its name, has redefined safety standards in electric vehicles, while the DM-super hybrid technology has achieved a perfect balance between fuel efficiency and power performance in their hybrid models.
In the increasingly competitive automotive market, technology is undoubtedly key to gaining a voice. BYD understands this well and treats R&D as its lifeline, continuously increasing investment to build robust technological barriers.
In addition to technology, talent is crucial to BYD's success. They recognize that attracting and retaining top talent is fundamental to sustainable growth. Thus, BYD not only offers generous salaries but also emphasizes creating platforms for talent to showcase their skills.
BYD's ambitions extend even further. They aim to create an ecosystem encompassing the entire supply chain of electric vehicles, including batteries, motors, and electronic controls. This integrated supply chain not only effectively controls costs but also ensures product quality and technological superiority.
BYD's success has also bolstered the confidence of Chinese automotive brands on the global stage. Once dominated by joint ventures, the Chinese market left local brands struggling for survival. Now, represented by BYD, Chinese automakers are gradually breaking this mold, leveraging their first-mover advantage and technological strength in the new energy sector.
BYD's "loss-making ventures" are actually strategic investments focused on the future. They understand that in the rapidly changing market, continuous innovation is the only way to maintain an edge. BYD's success provides a new perspective for Chinese enterprises: while pursuing short-term gains, it’s essential to emphasize the creation of long-term value.
The story of BYD continues. Can they maintain their rapid growth? Will they be able to compete with established global automotive giants? Let's wait and see.
