The Chinese manufacturer BYD is renewing its range of electric cars based on the implementation of its new electrical architecture, the e-Platform 3.0, and the new Blade batteries. The BYD Seal, commissioned to release it, sold 22,637 units in just under six hours after opening the reserves in China on May 20 at 4:00 p.m. In this short space of time he has sold four months’ production. A demonstration that the manufacturer is doing things right and one of the reasons why it has become the world’s third most valuable manufacturer by market capitalization.
BYD’s share price has reached $42.92, bringing its total value to $114.03 billion, overtaking Volkswagen with $106.16 billion, which is now in fourth place. Ahead, Toyota remains in second place with a capitalization of 221,320 million dollars. Above all follows Tesla, with the largest market capitalization, although now with a value of 650,000 million dollars, far from the 1,000,000 million it reached months ago.
The reasons why BYD is so well valued by the market is in its organizational structure, which follows a very vertical scheme. The Chinese automaker makes its own semiconductors, batteries and other components and has even been able to produce face masks during the worst of the coronavirus pandemic.
This quality is today especially important in the automotive industry. BYD don’t have to wait for its suppliers to solve logistics problems in other parts of the world or material shortages that radically affect supply chains. To respond to demand or internal problems that may arise just increase productionwithout external dependencies or ties.
With the e-platform 3.0, the Blade batteries and a very attractive and technological line of electric vehiclesthe only current restriction that the Chinese company has is to be able to reach new markets.
This way of working explains why BYD has not particularly suffered from the recent stoppage of production at its Changsha plant, after the government launched an investigation following news that nearby residents began complaining of nosebleeds, nausea, chronic cough and dizziness. Its other factories were able to supply the vehicles currently rolling off the Changsha lines: e2, e3, Destroyer 05, Qin Plus DM-i, Song MAX DM-i, Yuan Pro and the K-series electric buses, thanks precisely to the independence from external suppliers.