Digital Empowerment for Supply Chain Optimization and Capacity Expansion in the NEV Industry: A Case Study of BYD

Abstract

In contemporary society, a phenomenon has become increasingly overwhelming: more and more firms in the new energy vehicle (NEV) industry are undergoing digital transformation. The paper studies the case of BYD company Limited (BYD). It analyzes secondary data, such as industry reports and the enterprise's disclosures, to examine how digital transformation enables supply chain optimization and expansion of production capacity in the electric vehicle (EV) industry. By the analysis and the use of secondary data mentioned above, research has found that BYD's outcome of digitalization such as its digital system across procurement, manufacturing, logistics, and demand forecasting optimizes its supply chain and expand the production capacity which indicates the significant impact of digital transformation in optimizing supply chain and in reducing the coordination cost of production capacity expansion. These digital systems also provide critical support for scalable production expansion while mitigating the risk of overcapacity.