BYD Auto and the Market for Electric Cars: Global Ambitions, Nurtured in China

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Case Details:

Case Code : BSTR356
Case Length : 17 Pages
Period : 2003-2009
Pub Date : 2009
Teaching Note : Available
Organization : BYD Auto
Industry : Auto and Ancillaries
Countries : China, USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"It's almost hopeless for a latecomer like us to compete with GM¹ and other established auto makers with a century of experience in gasoline engines...With electric vehicles, we're all at the same starting line."²

- Wang Chuanfu, Founder and Chairman of BYD Company Ltd., in January 2009.

"BYD is growing fast and everybody's talking about Chinese car companies' ambitions for the U.S. market. But actually a lot of Chinese auto companies still need more time."³

- Paul Lin, Auto Export Manager of BYD Auto, in January 2008.

"There's a lot of interest in electric vehicles because it's a technology that's emerging from China's strong research and development base for lithium-ion⁴ batteries." ⁵

- Ray Bierzynski, Vice president for Engineering in the Asia-Pacific for GM, in April 2009.

Introduction

Chinese automobile company BYD Auto found a place on the list of 'Most Innovative Companies in China' released by Fast Company in March 2009.

BYD Auto and the Market for Electric Cars: Global Ambitions, Nurtured in China - Next Page>>

1] Founded in 1908, General Motors (GM), one of the world's leading automakers with headquarters at Detroit, US, held the record for many years of the highest global sales among all the automakers.
2] Norihiko Shirouzu, "Technology Levels Playing Field in Race to Market Electric Car," http://online.wsj.com, January 12, 2009.
3] Norihiko Shirouzu, "China's BYD Auto Plans to Sell Hybrids in U.S," http://online.wsj.com, January 11, 2008.
4] Batteries made from lithium (Li), a light and highly reactive metal, are mostly used to power mobile phones, laptops, etc. In addition to having high energy density, more recharge cycles, and long life, they lose charge slowly when not in use. Due to these features, they were regarded as a suitable choice for electric cars.
5] Elaine Kurtenbach, "China Automakers Focus on Hybrid and Electric Vehicles," www.usatoday.com, April 20, 2009.

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