Diversified vertical integration strategy is to build small to interior, paint, large to chassis, engine production capacity, BYD body has 70% of the parts are produced by themselves, which makes the cost significantly reduced, but as a new member of the automotive industry, inevitably will appear the process is not high, product stability is not strong problems, and over-investment, so that BYD does not have enough money to do a good job in all aspects of the car. These issues have been highlighted since 2015. As the domestic auto market becomes more and more mature, consumers began to have a higher pursuit of the quality of the car products, so BYD several models due to more problems began to decline in sales. And BYD in the development of new energy vehicles at the same time into electric mining vehicles, electric sanitation vehicles, electric port vehicles, electric engineering machinery, etc. , in short, the biggest problem is the overinvestment leading to no specialization, product quality is not up to standard, and no star products of their own.
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