Why is BYD's production capacity insufficient?
2 Answers
BYD's insufficient production capacity is due to issues with blade batteries, resulting in inadequate production capabilities. Introduction to BYD: BYD Company Limited was founded in 1995, starting with a team of just over 20 people. By 2003, it had grown into the world's second-largest rechargeable battery manufacturer and established BYD Auto in the same year. Starting as a battery manufacturer, BYD was essentially an 'outsider' when it came to making cars. However, leveraging its strong reputation for 'independent intellectual property rights' and the acquisition of Qinchuan Auto, BYD gained a first-mover advantage over other newcomers. Brand Introduction: BYD Auto adheres to a development path of independent R&D, production, and branding, committed to creating truly affordable and high-quality vehicles for the people. The product designs not only incorporate advanced international trends but also align with the aesthetic values of Chinese culture.
I ordered a BYD Han last year and had to wait over three months to get the car. I think BYD's production capacity can't keep up mainly because the demand for electric vehicles is skyrocketing. Their sales nearly doubled last year, and everyone's rushing to buy their cars due to the great value for money. Supply chain bottlenecks are also an issue—the global chip shortage slowed production, while lithium prices for batteries surged with limited supply. Factory expansion is slow too, with new plants struggling to catch up with the surge in orders. Hiring and training staff also takes time, and sometimes even running production lines at full speed isn't enough. I'd suggest they invest more in automation, but overall, the EV boom is a good thing—just a bit painful waiting for the car. Things should improve next year.
