BYD Reportedly to Change R&D Structure, Each Sub-Brand Has Its Own Research Center

BYD Seal car (ANTARA)

JAKARTA - BYD is rumored to be splitting its central Automotive Engineering Research Institute into five different brand research centers. This structural transformation redefines how the automotive group coordinates its engineering workforce.

Quoting from the Carnewschina website, Sunday, June 21, according to a Sina report, in the upcoming framework, the core engineering division will fully serve as a technology middleware repository. This centralized unit will remain fully responsible for blade battery chemistry, dedicated electric platforms, and electronic architecture foundations.

The newly established research facility will have independent authority over product definition and vehicle planning, which of course corresponds to existing brands such as the Dynasty, Ocean, Denza, Fang Cheng Bao to Yangwang series.

This restructuring shifts the decision of front-end engineering closer to the consumer. In addition, in conjunction with the reengineering of the structure, manufacturers will implement independent profit and loss accounting mechanisms for each portfolio. Dynasty, Ocean, Denza, and Fang Cheng Bao must operate under the direction of independent financing.

However, the Yangwang luxury brand is currently excluded from this short-term profitability target. Each brand will face billing costs based on market prices when accessing the company's shared assets.

This internal settlement aims to optimize cost efficiency, although a decentralized management framework, on the other hand, can increase the overall complexity of the organization.

Meanwhile, this change in the organizational structure is said to aim to overcome product overlap at various price ranges. Because the previous implementation of a centralized platform led to cannibalization of consumers between the Ocean and Dynasty lines, which have similar prices.