BYD Auto Co., Ltd. () is the automotive subsidiary of BYD Company, a publicly listed Chinese multinational manufacturing company. It manufactures passenger battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs)—collectively known as new energy vehicles (NEVs) in China—along with electric buses and electric trucks. The company sells its vehicles under its main BYD brand as well as its high-end brands, which are Denza, Fangchengbao and Yangwang, and its commercial-focused brand, Linghui.
BYD Auto was established in January 2003 as a subsidiary of BYD Company, a battery manufacturer, following the acquisition and restructuring of Xi'an Qinchuan Automobile. The first car designed by BYD, the petrol engined BYD F3, began production in 2005. In 2008, BYD launched its first plug-in hybrid electric vehicle, the BYD F3DM, followed by the BYD e6, its first battery electric vehicle, in 2009.
Since 2020, BYD Auto has experienced substantial sales growth that is driven by the increasing market share of new energy vehicles in China. The company has expanded into overseas markets from 2021, mainly to Europe, Southeast Asia, Oceania and the Americas. In 2022, BYD ended production of purely internal combustion engined vehicles to focus on new energy vehicles.
The company is characterised by its extensive vertical integration, leveraging BYD group's expertise in producing batteries and other related components such as electric motors and electronic controls. Most components used in BYD vehicles are claimed to be produced in-house within the group. , BYD's battery subsidiary FinDreams Battery is the world's second largest producer of electric vehicle batteries behind CATL. It specialises in lithium iron phosphate (LFP) batteries, including BYD's proprietary Blade battery.
BYD has become the best-selling car brand in China in 2023, after surpassing Volkswagen, which had held the title since the liberalisation of the Chinese automotive industry. In 2025, nearly 77 percent of BYD's sales came from the Chinese market. BYD is also the third most valuable car manufacturer in the world, based on market capitalization. In 2025, BYD became the world's largest electric carmaker, overtaking Tesla, and overtook Ford to be 6th in total automobile sales.
The company has faced scrutiny and criticism related to its business practices, including allegations of aggressive price reductions, labor issues at its facilities, and various environmental concerns.
History
2003–2008: Establishment and early years BYD Company was founded in 1995 as a battery manufacturer. In January 2003, BYD Company founder Wang Chuanfu established BYD Auto after acquiring and renaming a struggling small automotive manufacturer, Xi'an Qinchuan Automobile, from the state-owned defence company Norinco. The company was acquired for HK$269 million in exchange for a 77% stake, shortly after BYD raised HK$1.6 billion on the Hong Kong Stock Exchange in July 2002. The acquisition was met with disapproval from shareholders, as the plan had not been disclosed in the prospectus. Wang Chuanfu acquired Qinchuan with the intention of developing battery-powered electric vehicles, leveraging BYD's expertise in battery manufacturing. As Qinchuan had been manufacturing cars since 1987, the purchase gave BYD access to car manufacturing technology and an automobile production licence that was difficult to obtain at that time. At the time of the acquisition, Qinchuan was producing a small car called the QCJ7181 Flyer, which BYD renamed the BYD Flyer from 2005. Limited capacity at the former Qinchuan manufacturing plant in Xi'an, Shaanxi prompted BYD to construct a new manufacturing plant in the Xi'an Development Zone within the city.
The first car developed by BYD, codenamed 316, was rejected by dealers due to its poor styling and was scrapped before reaching the market, writing off CN¥100 million in research and development (R&D) expenses. Wang Chuanfu personally destroyed the prototype. The company instead developed the BYD F3 sedan, which entered production on 16 April 2005, with a price of CN¥73,000 (approximately US$10,000). Bearing a resemblance to the Toyota Corolla but offered at a lower price, the F3 gained popularity and became a successful model, with over 63,000 units sold in its first year. The 100,000th F3 rolled off the assembly line on 18 June 2007, 20 months after production began. Following this success, the larger BYD F6 sedan, modelled after the Honda Accord, entered production in August 2007. Initially, BYD cars were equipped with older Mitsubishi Motors engines manufactured in China, but within a few years BYD Auto developed its own engines by modifying Mitsubishi engine designs.
During its early years, BYD Auto achieved growth by reverse engineering competitors' products and supplier parts, and by maintaining tight control over costs. The BYD F3, the company's first mass-produced passenger car, has been described as "a copycat" of the Toyota Corolla. The BYD F0 was described as "a clear copy" of the Toyota Aygo, and the BYD S8 bears a similar appearance to the Mercedes-Benz SL-Class, with an "almost identical" Mercedes-Benz CLK front end and a Renault Mégane CC rear. Wang Chuanfu responded by stating the company used only "non-patented technologies". In 2009, the United States government was advised by its consulate general in Guangzhou that BYD employed an approach of "copying and then modifying car designs." However, according to the consul, BYD had modified the vehicle designs sufficiently to satisfy Chinese courts that no patents had been infringed.
In 2005, BYD Auto contributed 10% of BYD Company's total revenue. As its automotive business expanded, this share rose to 25% by 2006. In the first half of 2009, BYD Auto accounted for 55% of the parent company's total revenue, the first time its automotive division had contributed more than half of overall earnings. By 2008, BYD Auto operated two vehicle assembly plants in Xi'an and Shenzhen with a combined production capacity of 300,000 units per year, alongside an R&D and testing centre in Shanghai and a moulding plant in Beijing.
Following years of sales growth, widespread withdrawal of BYD dealerships was reported in major Chinese cities during 2010, attributable to excessively rapid expansion, a limited model range, and internal competition that created difficulties for dealers. The situation was compounded by BYD's emphasis on production capacity over product quality. In response, BYD reduced its annual production target from 800,000 to 600,000 vehicles; however, actual output fell short of the revised target, reaching only 517,000 units that year. Over the subsequent three years, BYD redirected its focus toward resolving concerns related to quality, dealer channel management, and brand development.
2006–2020: New energy vehicle efforts and sales stagnation
BYD began exploring hybrid and electric vehicles as early as 1997, before acquiring Xi'an Qinchuan Automobile. In that year, Wang Chuanfu, as part of his research into electric vehicles, purchased a BJ6490D, an electric car made by Beijing Second Auto Works that was built off an imported knock-down kit of the Holden Commodore VN station wagon. The BJ6490D was powered by golf cart batteries, with a range of about and a top speed of . Later, BYD acquired a second BJ6490D, later converted into a hybrid vehicle.
At the 2004 Beijing Auto Show, alongside its petrol-powered concept cars, BYD unveiled the BYD Flyer EF3, an electric sedan. Based on the BYD Flyer, the Flyer EF3 was initially intended for production in 2005, with a focus on serving as a taxi in Shenzhen. However, this plan did not materialise. Two years later at the 2006 Beijing Auto Show, BYD showcased another electric car, the BYD F3e. Based on the BYD F3, it had an all-electric range of more than , and was planned to be produced within three years from 2007. In December 2010, a BYD Auto general manager confirmed that the company had cancelled plans for its production due to the lack of support in charging infrastructure.
In 2006, BYD established the Electric Vehicle Research Institute, dedicated to the R&D and trial production of parts for new energy vehicles and the whole vehicle, including battery electric vehicles and plug-in hybrid vehicles.
In 2008, Wang Chuanfu set a goal for the company to become the leader in the Chinese automotive market by 2015, and the largest car manufacturer globally by 2025. Wang stated that electric vehicles would serve as BYD's "stepping stone" to skip the development of internal combustion engine vehicles and facilitate the company's entry into international markets, including Europe and North America.
In March 2008, the plug-in hybrid electric version of the BYD F3, the F3DM, was introduced as the world's first production model plug-in hybrid car at the Geneva Motor Show in Switzerland. Initially, the F3DM was offered in China as a fleet vehicle for governments, banks and other institutions, until retail sales started in March 2010 when the Chinese government started granting subsidies for new energy vehicles as part of the Government’s overall total R&D investment of 230 billion. The vehicle had low sales, with only 100 units sold by 2011.
In January 2009, BYD introduced its first production battery electric vehicle, the e6 at the 2009 North American International Auto Show in Detroit. It is powered by a battery pack codenamed "Fe", which provides a claimed electric range of . While plans to sell the vehicle to the general public in the US were shelved, the company sold the e6 in the US as a fleet vehicle in a limited number.
In May 2009, Volkswagen AG considered forming a partnership with BYD in the area of hybrids and electric vehicles, having signed a memorandum of understanding. Volkswagen withdrew from the partnership after conducting due diligence.
In July 2009, BYD acquired Hunan Midea Coach Company, a bus manufacturer based in Hunan, allowing it to manufacture buses and coaches and enter the commercial vehicle market. The plant in Changsha, Hunan, reportedly received a CN¥ 3 billion investment for development. BYD started producing battery electric buses as part of a pilot scheme initiated by the Chinese government. It signed a deal to supply 1,000 BYD K9 electric buses to the Hunan Government in China. The buses have a range of per charge with a top speed of , a charging time of six hours and 50% fast charging in 30 minutes.
In 2010, BYD Auto Industry Co., Ltd. and Daimler AG, now known as Mercedes-Benz Group AG, formed a 50-50 joint venture named Shenzhen BYD Daimler New Technology with a brand named Denza to focus on research and development of new energy vehicles. The brand showcased a concept car called the Denza EV at Auto China in April 2012. Denza was later restructured in 2021, when BYD took control of the brand by taking a 90% stake in the venture. Mercedes-Benz withdrew entirely from the joint venture in September 2024.
In August 2013, BYD launched the Dynasty Series product line with the introduction of the BYD Qin, a plug-in hybrid electric vehicle variant of the petrol-engine BYD Surui. The Qin was designed to replace the BYD F3DM, an earlier plug-in hybrid model. The Qin quickly became the best-selling plug-in electric vehicle of early 2014.
In November 2016, the company hired Wolfgang Egger as BYD Auto's head of design. Egger, who built his career at Alfa Romeo, Audi, and SEAT, created his first design for BYD, the Dynasty concept, a concept electric SUV that was displayed at the 2017 Shanghai Auto Show and previewed the design of the second-generation BYD Tang.