From China to the World

BYD’s Distinctive Path to Internationalization in the NEV Market

Abstract

Spurred by mounting environmental concerns and government incentives, the global New Energy Vehicle (NEV）market has witnessed exponential growth in recent years. Chinese companies are swiftly entering this arena, challenging the established dominance of conventional automakers. Among these, BYD has emerged as a particularly noteworthy case, rapidly ascending to become the world’s top NEV manufacturer. With its expansion into over 70 countries, BYD offers a compelling case study in internationalization. This paper examines the distinctive aspects of BYD’s internationalization strategies that set it apart from earlier Chinese multinationals like Haier, Lenovo, and Goldwind. By analyzing data from 58 markets where BYD operates, this study aims to provide a thorough analysis of the key drivers behind its unique approach.

Existing internationalization theoretical frameworks, including the OLI paradigm, LLL framework, and Uppsala model, fall short in fully capturing the unique dynamics of BYD’s global expansion. Through the lens of these established frameworks, this study seeks to identify the specific aspects of BYD’s internationalization pattern that diverge from traditional models. It introduces the concept of Third-wave Emerging-Market MNEs（multinational enterprises）, proposing an alternative model for firms that develop in-house technological advantages and accelerate market entry across multiple regions simultaneously.

This research contributes to the expanding literature on internationalization by offering insights into the strategies and dynamics of this new wave of emerging-market firms making their mark on the global stage. The findings hold substantial implications for both academics aiming to understand the evolving nature of international business and practitioners navigating the complexities of global market expansion.