When people talk about BYD, most think of its soaring sales and cutting-edge technology. But did you know that even though BYD’s revenue exceeded 300 billion yuan in the first half of 2024. netting a profit of 13.6 billion yuan, its profit per car is only 8.500 yuan? Hearing this figure, many might think BYD is running a “loss-making business,” spending more than it earns. However, there’s much more to BYD’s story than meets the eye.
Let’s first look at BYD’s “balance sheet.” Despite the low profit per car, BYD’s investment in research and development (R&D) is unmatched by any other automaker. BYD doesn’t rely solely on sales for dominance; it pours substantial amounts of money into technological research. The company isn’t interested in making “quick profits” in the short term. Instead, it aims for long-term technological leadership, planning to win the future through innovation. How impressive is BYD’s R&D team? With nearly 110.000 people, it makes up almost one-ninth of the total workforce! This ratio is unparalleled in the global automotive industry. And within that group, there are over 4.000 people working on intelligent driving alone, with 3.000 software engineers. In China, this setup is second only to Huawei, demonstrating BYD’s strong focus on intelligent technology. So, if you think BYD is just a car manufacturer, think again. It’s actually using technology to redefine the future of automobiles.
When it comes to intelligent driving, BYD’s ambitions are huge. As technology continues to advance, we might see BYD cars driving themselves on the road while we sit back and enjoy the scenery. But BYD’s success isn’t just about “spending money.” The company masterfully combines technological innovation with consumer demand. It doesn’t just focus on R&D; it also pays great attention to product design and pricing strategies. The result? BYD’s cars are not only technologically advanced but also affordably priced. This strategy of “making technology accessible” gives consumers a real sense of value for money. BYD’s approach has not only broken the “high-profit” barrier of joint venture brands but also accelerated the popularization of new energy vehicles.
In the past, joint venture brands charged high prices and controlled the premium market. But now, Chinese automakers, led by BYD, are gradually breaking that dominance. BYD’s success isn’t just its own win; it also represents a significant victory for China’s automotive industry. So, while BYD may have low profit per car, its bigger strategic vision is the true game changer. By increasing R&D investment and innovating technology, BYD is raising the competitive bar for the future automotive market. It’s not a short-term player—its eyes are set on leading the next technological era. When intelligent driving and automation become fully mainstream, don’t be surprised if the frontrunner is BYD, beloved by its loyal fans.
BYD’s so-called “loss-making business” is actually its ticket to technological leadership. BYD isn’t just building cars; it’s building the future. And for us car owners, all we have to do is patiently wait for the next technological revolution to arrive.
