During the World Economic Forum Annual Meeting 2026 in Davos, BYD Executive Vice President Stella Li systematically reviewed the rise of China's new energy vehicle industry and shared BYD's practical experience in global market expansion, particularly in Europe.
Li told Sina Finance that the rapid development of China's new energy vehicle industry primarily stems from the government's clear, firm, and consistently long-term policy direction. "This sends a very strong signal that companies must invest in R&D and allocate their best resources to new energy and future technologies; otherwise, they have no future." Under such clear expectations, companies no longer hesitate about strategic direction but make sustained long-term investments toward a unified goal.
She emphasized that the greatest value of such policies lies not in short-term subsidies but in providing long-term certainty for businesses. It is precisely this certainty that enables companies to confidently make high-intensity, long-cycle R&D investments, shifting almost all resources from internal combustion engine vehicles to electrification and intelligent technologies, forming a "ten years of grinding a sword" technological accumulation process.
Beyond policy factors, Li believes intense domestic competition within the Chinese market is equally crucial. She noted that competition in China's new energy vehicle sector occurs not only among traditional automakers but also involves numerous new entrants with IT and internet backgrounds. Unburdened by legacy constraints and excelling in software, system architecture, and user experience, these companies rapidly break traditional boundaries, revitalizing the entire industry's innovative vitality.
"The automotive industry was traditionally very conventional, even somewhat stagnant, but in China, it has become one of the most innovative sectors, surpassing even mobile phones and traditional IT industries in certain aspects." Li stated that this cross-boundary competition has upgraded the automotive industry from pure manufacturing to an integrated industry combining hardware, software, algorithms, and system capabilities.
Regarding innovation capacity, BYD's engineering culture is considered the core foundation. Li revealed that R&D personnel constitute over 10% of BYD's workforce, with approximately 120,000 R&D engineers. The company provides ample space for technological exploration, encouraging engineers to continuously challenge limits and push boundaries. Within this system, BYD not only iterates continuously on batteries, electric drives, and vehicle architecture but also developed a 3000-horsepower pure electric vehicle that set a world record of 496.22 km/h.
At the supply chain level, facing geopolitical shifts and external uncertainties, Chinese automakers are accelerating the establishment of self-sufficient industrial systems. Li indicated that such pressures have instead spurred stronger endogenous motivation, with rapid evolution occurring across the entire industrial chain from mineral materials and core components to chips, software, and system integration. "Given time, we can produce anything ourselves."
Discussing the European market environment, Li candidly acknowledged that Chinese companies face challenges from policy uncertainties during their global expansion. She noted that compared to China's long-term stable and directionally clear industrial policies in the new energy sector, Europe still exhibits certain fluctuations and uncertainties in related policies, including changes in subsidy rules, technical standards, and trade policies.
"This uncertainty presents a very real dilemma for entrepreneurs." Li emphasized that when making overseas investment, capacity planning, and localization decisions, companies require long-term, predictable policy environments, while frequently changing policy signals significantly increase operational costs and decision-making complexity.
She stressed that Chinese companies do not fear competition itself; the real challenge lies in rule instability. "As long as the rules are clear and transparent, we are confident in participating in fair competition in any market."
Regarding industry trends, Li endorsed the judgment that "electrification is the first half, intelligence is the second half," pointing out that the current global automotive industry's competitive focus is shifting from powertrain systems to intelligent capabilities, system integration capabilities, and continuous iteration capabilities.
In international markets, particularly Europe, Li stated that Chinese new energy vehicles are gradually breaking inherent biases through product strength. She observed that while the European automotive industry accumulated deep expertise during the internal combustion engine era, its pathways and pace for electrification and intelligent transformation are not entirely consistent.
"When we actually bring our cars to Europe, letting consumers see, test, and compare them, many people's first reaction is 'too good to be true'." Li indicated that in terms of performance, intelligent features, and overall experience, Chinese new energy vehicles already possess the capability to compete directly with traditional luxury brands.
She believes that in real market environments, consumers ultimately vote with their feet. "When they find no obvious shortcomings and even superior performance across many indicators compared to traditional models, the choice becomes very straightforward."
Li expressed that as the Chinese government continues to promote high-level openness, supporting companies' global expansion while welcoming international competitors into China, the Chinese new energy vehicle industry will continuously evolve through fuller global competition, gradually establishing long-term, sustainable international influence.
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