BYD Cars in India: Can They Make a Dent?

In October 2022, Chinese car company BYD Auto Co., Ltd. (BYD) announced its entry into the Indian automobile market with the Atto 3, an electric sports utility vehicle (e-SUV). Despite facing challenges in India’s emerging electric vehicle (EV) market and the close scrutiny on investments from China, BYD aimed to sell 15,000 units to be assembled at its existing Chennai plant, to establish manufacturing facilities, and to open fifty-three dealerships by the end of 2023. BYD’s push into India was part of its larger expansion strategy to diversify into new markets globally to include Japan, Thailand, the United States, and Brazil. However, the company needed to determine its target segment, who its competitors were, and what macroeconomic challenges it would face so that it could establish a position within India’s competitive car market. The existing Chennai plant saved BYD from having to obtain new approvals from the government, but the company still had to navigate the challenges of entering a new market with a nascent EV infrastructure.

<p align="justify">This case is suitable for courses in undergraduate, postgraduate business administration, and executive-level programs in brand management, marketing strategy, and marketing management. The case is also suitable for courses on brand equity, segmentation, positioning and repositioning, diversification, and leveraging secondary associations to build equity.<br><br>The case analyzes a firm’s multinational entry strategy in an industry still at the launching stage of its life cycle. The case is focused on external analysis techniques of the Indian market and exploring the competencies of BYD and ways of leveraging its capabilities on the Indian subcontinent. After working through the case and assignment questions, students will be able to<br><br><ul><li>understand the marketing concept of targeting and segmentation;</li><li>use PESTEL (political, economic, sociocultural, technological, environmental, and legal) analysis to understand the EV industry’s external environment;</li><li>understand the entry barriers for BYD in a competitive market;</li><li>use Porter’s five forces framework to formulate an entry strategy for the company; and</li><li>understand the concept of direct and indirect competitors in the context of EVs.</li></ul>

• Electric Vehicles, Market Penetration