Abdullah Ashraf

20U00680

Assignment 2

Q1: What are some of the key success factors of BYD?

These are the following reasons for the success of BYD

 BYD got the government support. Government encouraged the adoption of EVs and provided
subsidies for EV manufacturers.
 Warren Buffet invested $232 Million that gave a boost to the company.
 BYD expanded its operations beyond China and established a presence in international market.
This helped them to diversify their revenue stream.
 BYD follow vertical integration in its operations. They produce most of the cars parts i.e Car
batteries by its own. This reduces their cost and make it cheaper.
 BYD cars have low prices as compare to Tesla and their other competitors
 They have more innovative technology. Their battery time is more as compare to their
competitors.

Q2+Q3: Identify and elaborate some future challenges of BYD?

 In this technological era, EV market is continue to grow and new entrants are entering into the
market, so the competition can be intensified.
 Change in government regulations can affect EV market as currently, it is heavily dependent on
the subsidies of governments.
 BYD vertical integration helped them manage some supply chain risks, but it also exposes
company to potential disruption in key components and raw material.
 As BYD is expanding globally so, they must carefully assess risks and opportunities in each
market and adapt in strategies accordingly to succeed in its global expansion efforts.
 Maintaining quality and reliability is main thing for any company. Any quality issue or product
recall could damage BYD reputation and erode customer confidence.