BYD, a Chinese automaker, has adopted a strategy of manufacturing a large portion of its vehicle components in-house, which helps it offer electric vehicles (EVs) at lower prices than many of its competitors. Research by the Rhodium Group found that BYD produces about 80% of its first-tier components internally, compared to around 37% for Tesla. A similar analysis by Swiss bank UBS showed that 75% of the BYD Seal, one of its models, is made internally, while a Tesla Model 3 built in China has 46% internal production, and a Volkswagen ID.3 has 35%. This internal manufacturing approach allows BYD to cut costs and avoid the additional expenses that come from relying on outside suppliers. Japanese engineers and automotive suppliers have studied BYD’s electric SUV, the Atto 3, and noted that the company uses fewer parts than traditional automakers. Sho Kato, head of a service at Japanese supplier Nissin Seiki, said the low number of components used by BYD and Tesla was surprising. When the electric traction system of the Atto 3 was disassembled by the Next Generation Vehicle Center Hamamatsu, it became clear that BYD produces many of the most expensive parts, including batteries, electric motors, and power electronics, internally. This reduces the need for outside suppliers and helps BYD maintain control over production costs. BYD’s in-house battery production gives it a significant advantage in the EV market. The company originally specialized in battery technology and is currently the second-largest producer of batteries for electrified vehicles globally, with a 14.7% market share. This comes behind CATL, a leading Chinese battery maker, which holds 39.9% of the market. Producing batteries internally allows BYD to better manage costs, as batteries are one of the most expensive parts of an electric vehicle. BYD is also focused on reducing the number of parts in its vehicles. The Atto 3 is built on the e-Platform 3.0, an electric vehicle architecture developed by the company. This platform uses an eight-in-one electrical system that combines the motor, transmission, on-board charger, and electronic management units into a single module. This design increases energy efficiency to 89% and reduces the number of cables, assembly steps, and unused space in the vehicle. These design choices help streamline production and further reduce costs. In addition to its manufacturing strategy, BYD has its own fleet of ships to transport vehicles globally. The company is also expanding into Europe, with a production plant currently under construction in Hungary. This plant is expected to start production in 2027, marking BYD’s growing presence in international markets.