BYD‘s recent move to allow its car brands to function independently is considered the most significant organizational shift of the year, as reported by local media outlet 36kr. BYD is set to initiate its restructuring process, beginning with the R&D department.
According to the report, BYD’s engineering institute will establish multiple separate divisions to cater to its product lineups, including Dynasty, Ocean, and Denza.
The beginning of the year marked the start of the organizational restructuring process, with key positions in each brand’s research institute now occupied. According to recent reports, the heads of BYD’s research institutes for the Dynasty and Ocean series essentially serve as the directors of their respective models. Meanwhile, the former CEO of Denza, Wang Fengyi, now leads the brand’s research institute.
BYD’s dual automotive R&D departments
BYD’s automotive R&D departments, the Engineering Institute and the Planning Institute, serve distinct roles in the company’s innovation strategy. While the Engineering Institute is responsible for vehicle engineering technology, model projects, and operations, the Planning Institute is a technology provider, spearheading R&D on DM-i hybrid technology, intelligent cockpit, and intelligent driving.
As per industry sources, automakers are increasingly considering independent institutes to achieve greater responsibility, flexibility, and competition across different brands. Such institutes are expected to bring more clarity, streamline operations, and fuel innovation within individual brands.
The Impact of BYD’s “Family Culture” and “Equality” Values on operational speed
The slow pace of operations at BYD, attributed to the company’s “family culture” and focus on “equality” as its top value, has been reported by multiple employees of the new energy vehicle (NEV) manufacturer.
In light of a significant sales boost in 2022, BYD has undertaken measures to streamline its operations and increase efficiency. According to a report, BYD recognizes the need for fundamental organizational changes to improve efficiency. Establishing independent research institutes for each brand is a significant step in the company’s efforts to enhance resource integration and streamline operations.
BYD is restructuring its planning institute to centralize the management of smart driving R&D tasks, following the work of multiple departments on autonomous driving projects. As highlighted in the report, the decision is part of a broader effort to streamline operations.
Strong sales performance drives BYD’s expansion plans
BYD’s electric vehicle sales skyrocketed in 2021, with a 218.3 per cent increase from the previous year’s 189,689 units to a staggering 603,783 units. In 2022, BYD’s NEV sales growth picked up steam, culminating in a groundbreaking moment in March when the company sold more than 100,000 units in a single month, marking a new era for the company as it phased out traditional gas-powered vehicles.
BYD shattered records in 2022 with a remarkable year-on-year increase of 208.64 per cent in NEV sales, selling 1,863,494 units for the full year, cementing the company’s position as a leader in the NEV market.
