Recently, I read BYD's semi-annual report, and friends were exclaiming: "BYD made over 300 billion RMB, but the profit per car is only 8.500 RMB!" Hearing this figure, as a loyal "Di-fan," I couldn't help but wonder: Isn't this a "loss-making business"? However, after digging deeper, I realized that BYD’s strategy is incredibly shrewd! This is not a simple case of "losing money to gain attention" but rather a massive technical gamble laying a solid foundation for the future.
First, BYD earned 301.1 billion RMB in the first half of the year, with a net profit of 13.6 billion RMB, securing the top position among domestic car companies. But despite making so much money, BYD invested 20.2 billion RMB in research and development, which is even more than its profit. At first glance, this seems like "burning money," but in reality, BYD is planning for the long-term future. Do you think this 20.2 billion RMB was spent recklessly? No, it was strategically directed towards intelligent driving, battery technology, and various aspects of new energy. How impressive is BYD's R&D team? Out of the company's 900.000 employees, 110.000 are technical staff, a ratio that is extremely rare in the global auto industry. Especially its intelligent driving team, which is second in size only to Huawei's. BYD is not just pursuing sales; it’s making strides in intelligent driving and future mobility, using technological innovation to set the benchmark for the entire industry.
Some might ask, why is BYD working so hard? The answer is simple: technology is the core competitiveness of automakers. BYD recognized this early on, so it is willing to "sacrifice" some profit in the short term to stay ahead in technology. Moreover, BYD's pricing strategy is incredibly fair. Through "technology for all," it allows more consumers to enjoy cutting-edge technology at relatively affordable prices. Take models like the Qin L and Seal—while their prices aren’t outrageous, the configurations are quite luxurious. Features like the Blade Battery and super hybrid technology, once exclusive to high-end cars, are now made accessible by BYD, lowering the entry barrier so that everyone can enjoy high-tech innovations. Doesn't that make BYD a conscientious company? In the past, people often thought "foreign brands are more reliable," but now, BYD has led a wave of rising Chinese brands, breaking the myth of excessive profits in traditional automakers.
So, for those who think BYD is "losing money," focusing only on profit per car can lead to misunderstandings. But once you understand the deeper significance behind BYD’s 20.2 billion RMB R&D investment, you'll realize that this company is playing a grand game of "technology is king." In the future, as BYD continues to make technological breakthroughs, it will not only be the leader in domestic new energy vehicles but also expand its reach in the global market.
