Abstract

This case is about the corporate venturing of BYD Auto into the market for electric vehicles - both plug-in hybrid electric vehicles and pure electric cars - and exploiting global environmental concerns on sustainability as a business opportunity. The innovation of electric vehicle technology threatened to disrupt the dynamics of the conventional automobile industry, and BYD Auto sought to capitalize on its strengths in Lithium-ion battery technology based on years of research and development. Analysts felt that BYD Auto's intention of becoming the first Chinese automaker to achieve a leadership position in the US/global auto market was 'ambitious, but practical'. However, BYD Auto had to face competition from well-established automakers as well as new entrants to this nascent market. Moreover, the evolution and growth of the market for electric vehicles depended to a large extent on the regulatory environment and the availability of charging infrastructure.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Sustainability as a source of big business opportunities in the 21st century
• Disruptive technology innovation
• Strategic intent, long-term vision, corporate venturing (top-down intrapreneurship)
• Resource-based view of the firm
• International business strategies of an emerging multinational

Keywords

BYD Auto, BYD Company, Lithium-ion battery technology, Wang Chuanfu, Plug-in hybrid cars, Pure electric cars, Environmental sustainability, Energy security, Fossil fuels, Low emission vehicles, Charging stations, Fuel efficiency, Greenhouse gases, Total cost of ownership, Low carbon technologies, Tesla Roadster, Better Place, Coulomb Technologies Inc, Toyota Prius, Honda Insight, Renault-Nissan Alliance