BYD Restructures: Five Brand Research Institutes Go Independent with Profit-and-Loss Accountability

On June 19, BYD announced a new operational mechanism under which its four sub-brands—Dynasty, Ocean, Fangchengbao, and Denza—will operate independently and be financially self-sufficient. The Yangwang brand is temporarily excluded from this new structure. Under the new mechanism, each brand can access the group’s R&D, production, and procurement resources according to its own needs and will conduct independent cost accounting. Additionally, BYD plans to restructure its existing Automobile Engineering Institute into five separate research institutes aligned with the aforementioned brands, retaining only the core functions of platform development for hybrid/electric architectures and chassis systems within the central engineering institute. This move marks a shift from the previous model, where the Automobile Engineering Institute centrally oversaw vehicle definition and development. Previously, the vehicle development process involved five brand-specific research institutes under the Automobile Engineering Institute handling product definition and planning, while sales teams from each brand provided market insights and user requirements. Other technical divisions within the engineering institute managed overall vehicle development, and the Advanced Technology Research Institute supplied support in areas such as intelligent systems and electronic/electrical architecture. In May, BYD’s total vehicle sales reached 383,453 units, comprising 330,215 units from the Dynasty and Ocean series combined, 30,186 units from Fangchengbao, 16,303 units from Denza, and 286 units from Yangwang.