I really don’t want to go back to China. Their cities have thick smog even at 7 AM, I always end up coughing despite the visually clean surroundings, and the food is bland. Yet there I was for five days last week with BYD. I was curious how this brand came to be, more than anything else, which is why I said yes to this trip.
BYD’s history is similar to a person’s career. They started with something familiar to them, and made changes along the way. Of course there were risks, and some of them paid off in the long run. What’s more, it tells us that luck is truly an equation. It doesn’t happen simply by chance; it is when opportunity meets preparation.
Start with familiar
Toyota started out making looms. Honda had motorcycles. Mazda was making corks. BYD had batteries. BYD was founded by Wang Chuanfu, a chemist who graduated from China’s Central South University with a degree in Metallurgical Engineering. He saw an opportunity to make nickel-cadmium (NiCd) batteries when the big Japanese companies were transitioning to nickel-metal hydride (NiMH) and lithium-ion (Li-ion). His rhetoric is simple: these Japanese brands are going to be more modern, but also expensive.
He was proven right as big-name brands still clamored for NiCd batteries for their devices. His clientele included the mobile phone divisions of Nokia, Ericsson, and Motorola. They gave BYD the initial legitimacy as producer of reliable batteries.
Don’t be afraid
According to the BYD historian, BYD’s battery clients asked them to make other components as well like chargers and housings. When they finally transitioned to Li-ion batteries, they also increased their customer base. Even today, BYD continues to manufacture smartphones and related technology for Huawei and Honor among others.
In 2003, another pivotal moment happened when BYD Auto was born after acquiring Xi’an Qinchuan Automobile. Chuanfu saw this as an opportunity to get into the car market and start developing battery-powered cars.
While we are still enjoying a Mitsubishi Pajero, BYD is already looking into the future of car powertrains. Their first car is the BYD F3 which was a purely internal-combustion engine model launched in 2005. Shortly after, its plug-in hybrid version was launched in 2008. It was followed by BYD’s first battery-electric vehicle, the e6, in 2009.
Attention to detail
BYD does not forget to pay attention to the small things in their cars. In their Di Space Museum, they gave a sneak peek into some of their studies. You’ll see familiar things like the steering wheel design, the clay models of their cars, speaker housings, and console switches. What you’ll be surprised about are their studies on color, NVH, and even the smell of particular flowers for the cabin.
They’re also the first car brand I’ve seen to have noticed the elegant natural figuring of wood. There’s a mini section about them where they check the different patterns of different species of wood that can be incorporated into the cabin. This is much more exquisite than the usual wood veneers you’ll see in cars.
Play the long game
One of the most impressive displays in the Di Space Museum was their profit over the years. For so long, they are a small-time player. There was definite growth once they had the ball rolling in the car market, but it wasn’t much compared to the dominance they’re experiencing today in China and worldwide. This resilience is the reason they’re in the position they’re now in. When New Energy Vehicles had their moment around 2019, BYD was more than ready to capitalize on that opportunity.
One can only respect a company that stuck to their guns and believed in the long game. BYD could have chased profitability in their original product, but they doubled on mobility technology. This gave us the Blade Battery among others, as well as the highly-lauded DM-i system. Of all the car brands in the world that can rival Tesla, I didn’t expect that a Chinese brand with a cheesy marketing tagline would be the one to have the chance to eclipse Musk and co.
Words and Photos by Vincent Villa
Kaya pala namatay ang nokia, ericsson and motorola, BYD batteries pala gamit nila noon. At last the puzzles were solved.
ReplyDeleteKung sa Tingin mo because sa Battery kaya nagFail yang mga Brands. Sayang pinaaral sayo.
DeleteThose companies were arrogant when they were on top of the market and didn't believe the new players and new tech would pose a challenge to them.
DeleteWhen the new players and new tech took over, those companies reacted too late and lost their dominance.
Does that story sound familiar? I think the latest version of this is about an industry much bigger than phones. That's a new puzzle for you. 😁
Apple disrupted the phone industry.
DeleteBYD is an EV giant, there is no doubt on this. I am curious where BYD sources its ICE motor for their DM-i nameplates.
ReplyDeleteLike most of their parts, most likely in-house yan. ICE tech is not that challenging as long as you have competent engineers. Kahit hindi mag ka-level ng German or Japanese engines hindi nmn nila need ng ganun ka optimized na performance kasi majority of the workload is on the electric motors anyway.
Deletefrom copycat and still copycat
ReplyDeleteAlmost all the car companies started out being copycats. Even Toyota started by copying western designs in the 1930s. After WW2 finished they made jeep copycats and had to rename their products once Jeep started to trademark the name 'jeep'. It's the origin of the 'J' in cars like the FJ cruiser.
Delete