Navigating the German EV Market: Strategies for BYD's Sales Growth

Abstract

With the escalating global attention on climate change and environmental concerns, electric vehicles (EVs) have emerged as a crucial solution for mitigating CO2 emissions, driving a surge demand worldwide. As the leading EV manufacturer and having solidified its leadership in the Chinese market, BYD has accelerated its expansion efforts overseas. However, its entry into the German market with electric passenger vehicles at the end of 2022 has yielded disappointing sales over the past year. Thus, this master thesis aims to explore How can BYD adjust its business strategy adapting to the German EV market to increase sales? The analysis addresses three sub-questions: the institutional opportunity and challenge does BYD face through the lens of institution-based view, the opportunities and challenges BYD face in the German EV market is investigated by applying Porter’s Five Force and VRIO frameworks is used to identify the resources can help BYD achieve a competitive advantage in the German EV market. Throughout the analysis, key considerations for BYD's strategic adjustment in Germany include enhancing infrastructure with government collaboration to address shortcomings in current EV policies, boosting brand awareness and loyalty, maintaining its R&D advantage to develop cutting-edge technologies while ensuring cost control, and adopting market segmentation strategies to tailor objectives and marketing approaches for different segments. These adjustments are crucial for BYD to expand its customer base and increase sales in the German EV market.