BYD manufacturing strategy revealed through Japanese teardown

Japanese engineers and suppliers recently conducted a detailed teardown of the BYD Atto 3 to understand how the Chinese manufacturer achieves such competitive pricing for its electric vehicles. The analysis revealed that BYD’s cost advantage stems largely from its high level of vertical integration.

Unlike many traditional automakers that rely on a vast network of specialized third-party suppliers, BYD produces a significant portion of its own components internally. Findings indicated that nearly all parts of the Atto 3 are manufactured in-house, with only exceptions such as windows and tires. This internal production model allows the company to bypass the markups associated with multiple intermediary suppliers.