Build story · China · 1995–2023
BYD: from phone batteries to the world's biggest EV maker
Wang Chuanfu started BYD making phone batteries in 1995, entered cars in 2003, won Warren Buffett's backing, and in late 2023 overtook Tesla in quarterly battery-electric car sales.
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
by the numbers
- Founded
- 1995, batteries
- Entered cars
- 2003
- Berkshire Hathaway investment (2008)
- about $230 million
- New-energy vehicles sold (2023)
- about 3 million
What happened
Chemist Wang Chuanfu founded BYD in Shenzhen in 1995 to make rechargeable batteries, using labour-intensive processes to compete with Japanese producers on cost. It became a major supplier of phone batteries.
BYD bought a struggling carmaker in 2003. Its battery expertise gave it an advantage in electric and hybrid vehicles, and it produced many key parts itself, including batteries and chips. In 2008 Warren Buffett's Berkshire Hathaway invested about $230 million for roughly 10% of the company. Chinese government support for electric vehicles accelerated growth.
BYD stopped making purely petrol-powered cars in 2022. In the last quarter of 2023 it sold more battery-electric vehicles than Tesla, and it sold about three million ‘new energy’ vehicles that year.
Timeline
- 1995
BYD founded.
- 2003
Enters the car industry.
- 2008
Berkshire Hathaway invests.
- 2022
Stops making petrol-only cars.
- 2023
Overtakes Tesla in quarterly BEV sales.
what made it work
- Core battery expertise became the key EV component.
- Vertical integration lowered costs.
- Supportive home-market policy.
the lesson
Mastering the most important component of a future product can let a supplier become the market leader.
Apply it to your business
- 1Identify the critical component in your industry's future.
- 2Control key inputs to manage cost.
- 3Ride favourable policy trends.
Laws at work in this story
Figures are rounded and drawn from public reports, company filings and widely cited coverage at the time. Check the company's latest filings before relying on any number.