BYD is reportedly preparing a major restructuring of its research and development operations, shifting from a technology-centered organization to a more brand-focused structure as China’s largest electric vehicle manufacturer seeks to sustain growth in an increasingly competitive market.
According to local media outlet Jipian Lab, BYD plans to reorganize its Engineering Academy into five independent research institutes aligned with its major automotive brands: Dynasty, Ocean, Fang Cheng Bao, Denza, and Yangwang.
Brand Research Institutes Gain Greater Authority
Under the proposed restructuring, the five brand-specific research institutes would be elevated to a level similar to that of the Engineering Academy.
The Engineering Academy would retain responsibility for developing underlying vehicle platforms and shared technologies, while most personnel would be reassigned to the brand institutes.
The report said the brand organizations would assume responsibility for product definition, vehicle planning, and development direction for their respective lineups.
They would also become directly accountable for market performance, reflecting a shift toward placing decision-making closer to customer demand and market trends.
Shift From Technology-Led to Market-Led Development
The restructuring would represent a significant change in BYD’s product development philosophy.
Historically, the Engineering Academy and its network of technology centers have overseen most technical development activities, while brand research institutes played more limited roles focused on project coordination and product planning.
If implemented, the new structure would give brands greater influence over future vehicle programs and product strategies.
The approach mirrors a broader trend across China’s automotive industry, where automakers are increasingly seeking to shorten development cycles and respond more quickly to changing consumer preferences.
BYD Revisits Earlier Organizational Model
BYD has previously experimented with brand-specific research institutes.
The company established dedicated institutes for Denza, Yangwang, and other emerging brands in 2023, while the Dynasty and Ocean lineups later received their own research teams.
However, those organizations remained under the supervision of the Engineering Academy and primarily focused on planning functions.
By mid-2025, many of the brand institutes had been reduced in size, with staff reassigned to centralized engineering and technology departments.
The latest move would reverse that trend and restore greater autonomy to the individual brands.
Growth Slowdown Spurs Organizational Changes
The restructuring comes as BYD faces new challenges after several years of rapid expansion.
The company increased annual vehicle sales from approximately 427,000 units in 2020 to 4.27 million units in 2024, making it one of the world’s largest electric vehicle manufacturers.
However, growth has slowed since then. Full-year sales growth decelerated to 7.7% in 2025, while cumulative sales during the first five months of 2026 totaled 1.405 million vehicles, down 20% from a year earlier.
Industry observers have noted that BYD is entering a new phase of development in which maintaining growth at scale may require organizational changes as well as product innovation.
Similar Strategy Seen at Rival Geely
The reported restructuring bears similarities to organizational changes undertaken by Geely Auto.
Under its “One Geely” strategy, Geely consolidated development of shared technologies within a central research institute while establishing separate vehicle development organizations for brands including Lynk & Co, Zeekr, and Galaxy.
The model aims to combine centralized technology development with decentralized product planning, allowing individual brands to respond more directly to market conditions.
Signs of Recovery Emerging
The reorganization plans coincide with indications that BYD’s sales momentum may be improving.
The company wholesaled 383,453 new energy vehicles in May, a slight increase of 0.26% from a year earlier, ending eight consecutive months of declining year-on-year sales.
International markets were a major contributor to growth, with overseas sales reaching a record 160,644 units, an increase of more than 80% compared with the previous year.
Premium Expansion and Battery Transition Continue
BYD is also navigating a major technology transition as it upgrades from its first-generation Blade Battery technology to a second-generation platform featuring ultra-fast charging capabilities.
The transition has reportedly constrained production capacity and lengthened delivery times for several key models.
Chairman Wang Chuanfu has previously warned of battery production bottlenecks, though the company expects capacity constraints to ease as manufacturing upgrades are completed.
At the same time, BYD continues to push further into the premium vehicle segment. The recently launched Da Tang flagship SUV has attracted more than 150,000 pre-orders since pre-sales began in April, according to the company.
The reported restructuring suggests BYD is seeking to adapt its organization to support the next stage of growth as competition in China’s electric vehicle market intensifies and consumer preferences become increasingly diverse.
