BYD Value Chain Analysis

By John Dudovskiy
February 18, 2024

BYD value chain analysis is an analytical framework that assists in identifying business activities that can create value and competitive advantage to the business. Figure below illustrates the essence of BYD value chain analysis.

BYD Value Chain Analysis

BYD Primary Activities

BYD Inbound logistics

BYD inbound logistics is one of the key sources for value creation for the EV behemoth. BYD has more than 11,000 cooperative suppliers, 41% of which are located in Southern China, 34% in Eastern China, 9% in Northern China.[1] The electric automaker aims to produce as many spare parts in-house as possible, thus decreasing dependence on external vendors, at the same time increasing profit margins. For example, for BYD Dolphin only tyres and windows are delivered by suppliers and all other components are produced by the company itself.[2]

BYD prioritizes long-term partnerships with reliable suppliers, securing stable access to critical materials and components like lithium, cobalt, and semiconductors. This reduces procurement risks and price fluctuations. The company leverages cutting-edge technologies like digital supply chain management systems, artificial intelligence for demand forecasting, and automated warehouse robots.


 BYD Operations

In the operations stage, BYD engages in the manufacturing and assembly of its products. This includes the production of EVs, batteries, solar panels, and energy storage systems. Efficient production processes and quality control measures are crucial in this stage. BYD operations can be divided into the following four segments.

  1. Automobile. BYD delivered a total of 1,802,000 vehicles in 2022, with a year-on- year growth of 149.9%, including around 1,788,000 new energy vehicles, with a year-on-year growth of 217,6%.[3]
  2. Rail Transit. The company produces medium-capacity “SkyRail” and low-capacity “SkyShuttle” filling the technological and industrial gap in rail transit and providing effective solutions to traffic jams in cities all over the world.
  3. Renewable energy. As a provider of integrated renewable energy solutions, BYD produces relevant products like batteries, solar energy products, energy storage products, building a complete industry chain from energy absorption, storage to application. In 2022, the total sales volume of batteries reached 89.8Gwh, representing a year-on-year growth of 136.[4]
  4. Electronics. BYD Electronics (International) Company Limited offers products and services in a wide range of electronics sectors such as s smartphones, tablet PCs, new energy vehicles, residential energy storage, smart home, game hardware, unmanned aerial vehicles, Internet of Things, robotics, communication equipment etc.

BYD operates multiple large-scale manufacturing plants in China and other countries. Massive plants enable the company mass production of EVs and components, achieving economies of scale and meeting growing market demand.


BYD Outbound Logistics

BYD boasts a vast network of over 400 dealerships across 70 countries and regions, ensuring accessibility for its growing customer base[5]. One of the leading rechargeable battery manufacturers in the global arena utilizes a mix of land, sea, and rail transport depending on the destination, reducing lead times and lowering costs. Strategically located warehouses in key markets ensure timely delivery and minimize inventory stockouts. BYD leverages advanced tracking systems and digital platforms to monitor shipments, optimize routes, and provide real-time updates to customers.


BYD Marketing and Sales

BYD caters to various segments, offering affordable EVs for mass markets alongside premium models for tech-savvy consumers. Beyond environmental benefits, the company highlights performance, safety, and affordability, appealing to practical and rational buyers. The electric automaker tailors marketing campaigns and dealership networks to cultural preferences and market needs in different regions.


BYD Service

In the competitive EV market, customer satisfaction extends beyond the initial purchase. Ensuring a positive post-sale experience through robust and reliable services is crucial for brand loyalty and repeat business. BYD recognizes this, putting considerable focus on exceeding expectations when it comes to after-sales care. The company boasts a growing global network of over 400 service centers, ensuring accessible maintenance and repairs for its customers.

For minor issues or remote locations, BYD deploys mobile service vans, bringing the expertise directly to the customer. A dedicated customer support team is available 24/7 to address concerns and guide customers through troubleshooting and service needs. Customers can book appointments, track service progress, and access service history online for added transparency and convenience. BYD also offers value-added services such as extended warranties and service packages, charging infrastructure support, as well as, software updates and upgrades.

BYD Company Limited Report contains a full version of BYD value chain analysis. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Ansoff Matrix and McKinsey 7S Model on BYD. Moreover, the report contains analyses of BYD leadership, business strategy, organizational structure and organizational culture. The report also comprises discussions of BYD marketing strategy, ecosystem and addresses issues of corporate social responsibility.


[1] CSR Report (2022) BYD

[2] Johnson, P. (2023) BYD America boss explains Chinese EV makers edge as it expands overseas, Electrek, Available at:

[3] Annual Report (2022) BYD Company Limited

[4] Annual Report (2022) BYD Company Limited

[5] BYD Car Dealer Network in Germany Announced at the Paris Motor Show(2022) BYD, Available at: