BYD’s Vertical Integration

What does it mean for you, the customer?

What is Vertical Integration?

Being a vertically integrated company provides a number of advantages for the manufacturing company itself, as well as servicing the product throughout its lifecycle. Notable manufacturers and brands such as Amazon, Apple, Tesla, and NVidia have placed vertical integration at the center of their operating and manufacturing strategies (1). BYD Material Handling is no different. Because BYD manufacture the battery cells, battery management system, complete battery assembly, the forklift that uses this battery, and the charger that recharges it, they reach a level of efficiency not previously seen in the Material Handling Industry.

But, what does that mean for you, the customer?

For one, all service needs can be addressed by your BYD dealer. There is no need to contact a forklift company, a battery company (which may have had to source their battery management system from another company), and a charger company for service. This also leads to peace of mind in that you know all of these components were designed to work together within the BYD system.
Two, you’ll realize greater energy efficiency during operation, this leads to longer run times and more efficient recharging.
Lastly, you’ll have the benefit of the only 100% non-prorated, 10 year – 20,000 hour battery warranty offered in the industry.

Portland – based Allied Market Research agrees that Vertical Integration is allowing BYD to offer these benefits, to you, the customer, and in a sustainable way, “vertical integration is giving BYD long-term staying power while smaller rivals that aren’t yet vertically integrated will be driven out,” (2)

“That list also includes semiconductors—BYD’s chipmaking arm, BYD Semiconductor, specializes in making the chips used in EVs, which has allowed the firm to get around shortages that disrupted sales of other EV makers. In a global EV market projected to reach $824 billion by 2030 (at a CAGR of 18%), according to Portland-based Allied Market Research, “vertical integration is giving BYD long-term staying power while smaller rivals that aren’t yet vertically integrated will be driven out,” says Bill Russo, CEO of investment advisory firm Automobility in Shanghai.

BYD - The Recipe For Success

Vertical Integration is another buzzword that permeates the business landscape, but, this practice provides tangible benefits to you, the Material Handling Equipment user. One manufacturer being able to provide the truck, battery, and charger, all managed from component creation through final build with one call to make for regular maintenance and any other service required is a recipe for success in an industry where uptime matters most.

Contact MHE at 888-740-1815 and find out what BYD Material Handling Equipment can do for your business.

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Citations

(1) Into the Minds – The Return of Vertical Integration

https://www.intotheminds.com/blog/en/vertical-integration/#:~:text=Since%202021%2C%20vertical%20integration%20has,that%20illustrate%20this%20paradigm%20shift.

Quote: Since 2021, vertical integration has been at the center of the strategies of companies like Amazon, Apple, Ferrero, Tesla, and NVidia. In this article, we explain why big companies are changing their approach.

(2) Forbes Magazine – Plugged In: BYD’s Wang Chuanfu Explains How China’s No. 1 EV Maker Caught Up With Tesla

https://www.forbes.com/sites/russellflannery/2022/11/09/plugged-in-byds-wang-chuanfu-explains-how-chinas-no-1-ev-maker-caught-up-with-tesla/?sh=6e1a401f728b

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