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How German automakers must adapt to stay competitive against BYD’s strategic approach across the automotive value chain - mid- and downstream strategies
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This thesis investigates the disruptive influence of BYD’s value chain strategy on the automotive industry, focusing on its implications for German original equipment manufacturers. Through an in-depth analysis of upstream, midstream, and downstream activities, it reveals how BYD's end-to-end control drives cost leadership, accelerates innovation, and challenges the traditional model. Set against intensifying global
electrification, the analysis underscores mounting competitive pressure on established automakers and shifting consumer expectations worldwide. This study argues that BYD redefines automotive value creation and concludes with strategic recommendations for German automakers: leverage ICEV cash-cow, reinvest in EV capabilities, forge an EU battery standard, and amplify brand equity.
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Automotive industry Automotive value chain Battery electric vehicles BYD Chinese cars Electrification German OEM challenges Vertical integration