BYD is setting up separate divisions with corresponding executive appointments and dedicated operation teams for each brand under its diverse portfolio in a move to improve efficiency and boost internal competition, local media outlet 36Kr reported.
Why it matters: The move comes as BYD pursues a wider customer base, especially in the luxury car segment, rolling out several new brands and offerings. The firm is also seeking to maintain its leadership of the Chinese electric vehicle space amid rising competition.
- The automaker originally set an ambitious sales target of 4 million units this year, which will more than double 2022’s number, financial media outlet Caixin quoted chairman Wang Chuanfu as saying. The company later declined to provide a guide figure for 2023, citing multiple challenges.
Details: Early this year, BYD carried out a reorganization under which its Dynasty, Ocean, and Denza series would be run as separate units in terms of vehicle development and project management, 36Kr reported on Friday, citing people familiar with the matter.
- The Chinese manufacturer has named executives, mostly existing automotive program directors or heads of the respective businesses, to lead each unit, calling them “brand research and development institutes” (our translation).
- Each team should be able to better allocate resources with its own leadership structures and profit-and-loss statements while maintaining access to company-wide vehicle technologies, the report said, adding that the new structure has also been adopted by rival carmakers such as Geely.
- BYD has implemented various measures to streamline operations and boost internal competition since last year, such as revamping its evaluation scheme for employee performance and letting go of those with the lowest grades, according to the report.
- BYD did not respond to TechNode’s request for comment.
Context: China’s top EV maker by sales volume has been quickly expanding its product offerings to a broader range of vehicle types than the affordable, down-to-earth offerings it has traditionally marketed.
- BYD debuted the first two models under its high-end Yangwang brand at the beginning of 2023 and is on track to set up another premium, more personalized brand (codenamed F) later this year. Both new brands will have showrooms independent of BYD’s existing sales networks.
- The company also operates Denza, a mainstream luxury brand initially co-developed by the Chinese carmaker and Daimler in 2010 and which posted sales of 9,803 D9 multi-purpose vehicles as of December, five months after its launch. Denza is expected to introduce two new electric crossovers this year.
Keyword: BYD reportedly sets up separate brand divisions to propel further growth