BYD, the Chinese electric vehicle giant, is in full sprint mode to close the gap in autonomous driving technology, consolidating internal teams and recalibrating its approach.
Insiders told 36Kr that BYD recently merged its two core autonomous driving R&D teams—the Tianxuan and Tianlang departments. The unified team is now working toward a mid-2024 launch for BYD’s intelligent driving systems, which will include highway and urban navigation features. The first models featuring this technology will debut under BYD’s high-end Yangwang brand, with models priced around RMB 1 million (USD 140,000).
The reorganization follows a push earlier this year to strengthen BYD’s in-house technology development. In June, BYD established the Tianxuan department, led by Xu Lingyun, a former executive from HiPhi’s smart driving division, to focus on high-level autonomous driving solutions. Meanwhile, BYD veteran Li Feng led the formation of the Tianlang department to handle entry-level autonomous features and oversee select supplier projects, including the Seagull project.
BYD’s culture of competition
BYD has long fostered internal competition, applying this approach across its divisions, from chip development to intelligent driving. This model encourages innovation but can also strain resources and delay product timelines. In autonomous driving, focus and precision are crucial, and a streamlined, unified team is better positioned to deliver results. BYD’s recent restructuring underscores its determination to bring self-developed intelligent driving technology to market quickly.
Industry competition is also intensifying, with new advances in highway and urban navigation from leaders like Huawei. BYD’s restructuring signals its intent to keep pace in this fast-evolving space.
The Tianxuan team was originally part of BYD’s intelligent driving research center within its new technology institute, while the Tianlang team came from the intelligent driving unit of BYD’s electronics division. Earlier this year, as BYD began streamlining its intelligent driving resources, the electronics division’s 100-strong intelligent driving team was folded into the new technology institute, led by Li.
Since then, these groups have shifted from parallel operations to a full merger. Insiders reported that the Tianlang team absorbed experienced talent from other automotive companies, giving it an edge in development speed.
The recent consolidation means that Xu, who previously reported to new technology institute head Yang Dongsheng, now reports to Li. This shift marks another change in BYD’s autonomous driving leadership, following a year in which the role passed from veteran Han Bing to rising star Xu, and now to Li.
This restructuring reflects BYD’s intense focus on self-developed intelligent driving systems. Yang told 36Kr that intelligent technology is now BYD’s top priority, adding that he frequently discusses the topic with Chairman Wang Chuanfu.
“It’s common for big initiatives at BYD to involve competition, especially at the company level. But if a team isn’t delivering, changes are made,” a seasoned BYD insider shared with 36Kr.
Autonomous driving: BYD’s new growth lever?
In September, BYD reached a milestone, selling over 400,000 vehicles in a single month, with total sales reaching 419,400. The Dynasty and Ocean series accounted for 401,500 of these, representing 95.7% of total sales, while high-end brands Denza, Fangchengbao, and Yangwang made up just 3.8%.
While the Dynasty and Ocean series dominate the low- to mid-end segments, allowing BYD to control pricing in the RMB 100,000–200,000 (USD 14,000–28,000) range, BYD has set its sights on higher-end market share. Capturing this segment is no small feat. Rivals like Nio, Aito, and Li Auto, which have long benchmarked themselves against BMW, Mercedes-Benz, and Audi, have strong brand recognition and consumer loyalty.
To break into this market, BYD is focusing on advanced intelligent driving technology. Recent releases, such as the Denza Z9 GT, have drawn significant interest, with 5,000 orders placed within 36 hours of its launch. If equipped with enhanced navigation features, these models could perform even better in the market.
If BYD’s proprietary algorithms and signature technologies, like Yisifang and DiSus (known locally as Yunnian), are rolled out, the brand may offer a differentiated driving experience that accelerates its entry into the mid- and high-end market.
Self-developed intelligent driving requires substantial financial support, an area where BYD has a distinct advantage. Chairman Wang previously stated that the company plans to invest RMB 100 billion (USD 14 billion) in intelligent driving R&D, focusing on advanced technology including generative AI and end-to-end large models.
These plans are not just on paper. Known for its “engineer culture,” BYD invested RMB 20.2 billion (USD 2.8 billion) in R&D in the first half of 2024 alone.
While Yang has described BYD’s end-to-end approach as “mechanical” in scope—integrating every element from sensors to actuators—BYD is quietly advancing in software. In June, the company briefly brought in Zhou Peng, a former Baidu smart driving executive, to lead end-to-end algorithm development for large models. With the Tianxuan and Tianlang teams now combined, BYD is channeling its resources toward breakthroughs in software algorithms.
BYD’s reliance on multiple teams previously energized its intelligent driving efforts but also created redundancies. Now, by pooling resources, BYD is positioned to address its weaknesses more effectively.
As mid-level autonomous driving features become standard in RMB 150,000 (USD 21,000) vehicles, BYD’s future in the mid- to high-end market depends on its autonomous driving capabilities. Without a strong showing in this area, BYD risks losing traction not only in the premium segment but also in its core RMB 100,000–200,000 range. With its recent restructuring, BYD is clearly ramping up to accelerate its development.
BYD’s sustained commitment to electric technology has given it a head start in the industry, with new energy vehicle sales now surpassing 9 million and revenue reaching over RMB 300 billion (USD 42 billion) in the first half of the year. But as BYD steers this giant ship forward, its intelligent driving technology will be critical to unlocking new market potential.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Han Yongchang for 36Kr.