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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Excerpts

Background

The founder of BYD Company had earlier been a Researcher at the General Research Institute of Nonferrous Metals in Beijing. Wang Chuanfu, who later came to be known as the 'battery king', started BYD Company in 1995 with a few engineers to manufacture batteries for cell phones...

BYD Auto Ventures into Electric Cars

Leveraging on its battery manufacturing expertise, the company forayed into the electric cars market by

launching the plug-in hybrid version of its leading F3 model under the name F3DM (DM stood for dual mode) in December 2008...

The Domestic Market Potential in China

China met its oil needs mostly from imports and that led to a rise in its import bill. Fuel efficiency was an important requirement to protect the country from the volatility of crude oil prices in the global market. Electric cars, due to their greater efficiency and reduced dependence on fossil fuels, were expected to address this issue. Moreover, in 2008, China had surpassed the US as the biggest emitter of greenhouse gases...

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