BYD makes 75 percent of its vehicle parts internal. That solitary truth describes why their autos cost what they set you back.
Their own batteries. Their very own semiconductors, from a chip subsidiary introduced in 2004 that now supplies 40 percent of its chips to outside firms as a side business. Their own electric motors. Their very own power electronic devices.
At their Hefei plant, 1,200 welding robots run a 97 percent automated line. A device sets up all 4 wheels, screws automatically fed and laser-aligned, in 48 secs. Another plant produces a body-in-white every 58 seconds.
In the Western auto supply chain, those margins obtain distributed across Bosch, Continental, ZF, Magna, Aptiv, Infineon, Mobileye, and hundreds of tier-two distributors. Each with shareholders, head office, R&D budgets, and legal departments. BYD just has that entire layer.
When UBS engineers tore apart a BYD Seal in 2024, they associated its cost-effectiveness to vertical assimilation and the cell-to-pack blade battery style, where cells go directly into the architectural floorpan, getting rid of components that tradition battery packs usage. Top Gear called the indoor really premium, with build high quality that really feels a suit for anything from Japan or Korea.
They couldn’t get sufficient delivering ports for their export volume, so they developed their own ships. The BYD Shenzhen: 16 decks, 9,200 automobiles, the biggest car carrier ever before developed by capability. That is not a flex. That’s what vertical assimilation looks like when there’s absolutely nothing delegated outsource.