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In the automotive industry of 2025, “intelligence” has transformed from a technological high ground into a competitive red ocean. BYD, with its dual strategy of “self-developed chips + vertical integration,” not only frequently trends but also reshapes industry rules with a disruptive posture. What strategic logic lies behind this “hardcore” transformation?
1. Self-Developed Chips: From “Choke Point” to “Definer”
BYD’s history of chip self-development dates back to 2005, when it was constrained by automotive-grade IGBT chips. Wang Chuanfu proclaimed, “Chips are man-made, not god-made,” initiating the self-development journey. In 2024, BYD launched the 4nm BYD 9000 chip, achieving a score of 1.15 million, directly competing with Qualcomm Snapdragon, and is equipped in high-end models like the Fangcheng Leopard, enabling smooth operation of intelligent cockpits and AI large models.
More critically, cost control: BYD’s self-developed 80TOPS intelligent driving chip, while inferior in performance to NVIDIA Orin, cuts costs by half, specifically designed for models priced at 100,000 yuan, becoming a core weapon for “intelligent driving equity.”
2. Vertical Integration: The “Cash Capability” of the Supply Chain
BYD’s ambitions extend beyond chips. From laser radars (cost reduced to under 1,000 yuan), domain controllers to drive-by-wire systems, it achieves full-chain self-research and production through subsidiaries like Fudi Technology, with costs 20%-50% lower than external procurement. For example, the cost of millimeter-wave radars has dropped to the hundred-yuan level, directly squeezing the survival space of traditional suppliers. This deep integration not only ensures supply chain security but also allows BYD to engage in price wars with precision—by 2025, it plans to offer high-speed NOA and other features in models priced at 100,000 yuan, effectively making intelligent driving “affordable.”
3. Data Dominance: The Ultimate Fuel of Scale Effect
BYD’s monthly sales exceed 500,000 units, with an annual target of 5 million units, and intelligent driving models accounting for 60%. This means the daily driving data generated is comparable to the total of a city’s taxis. Relying on the “Eye of God” system and Deepseek large model, the speed of algorithm iteration has increased exponentially, forming a closed-loop flywheel of “data-optimization-experience.” This scale effect makes Tesla’s “shadow mode” pale in comparison.
Industry Insights: From “Technological Aristocrats” to “Technology Going Rural”
BYD’s logic is clear: break the technological monopoly with self-development, compress costs through integration, and use scale to feed back the ecosystem. While competitors are still debating whether full-stack self-development is necessary, BYD has already reduced the cost of intelligent driving to 4,000 yuan per set through vertical integration, planning to achieve 80% coverage of high-level intelligent driving in 2025. This transformation is not just a technological race but a dimensional reduction attack on business models—the future automotive battlefield belongs to hardcore players who can both “create chips” and “control chains.”
Conclusion
BYD’s “hot search physique” is essentially a resonance of technological independence and commercial ambition. When “intelligent driving going rural” becomes a reality, the competitive logic of China’s automotive industry has been completely rewritten: it is no longer about who is more “high-end,” but who is more “inclusive.” This may well be the best annotation of Wang Chuanfu’s statement, “The first half is electrification, the second half is intelligence.”