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https://doi.org/10.56556/gssr.v4i1.1232  

                                                                  

 
 

    Global Scientific Research   112 
 

RESEARCH ARTICLE  

 

From Product Globalization to Capacity Globalization: BYD's Comprehensive 

Overseas Expansion Strategy 
 

Jialin Liu1, Hongmin Liu1*, Haiming Yu2  

  
1School of Management, Zhejiang University of Science and Technology, Hangzhou China 
2School of Economics, Zhejiang University of Science and Technology, Hangzhou China 

 

Corresponding Author: name: Hongmin Liu.  Email: hmliu@zust.edu.cn 

Received: 29 March, 2025, Accepted: 31 May, 2025, Published: 17 June, 2025 

 

Abstract 

In the face of volatile domestic and international market environments and rapid industrial evolution, the key to 

successful corporate globalization lies in how enterprises dynamically capture multiple windows of opportunity--

institutional, technological, and demand-driven–through environmental scanning strategies. This process must 

align with organizations' dynamic capabilities to translate insights into decisive overseas expansion strategies that 

reconstruct value chains. Through an exploratory case study of BYD Co., Ltd. in Shenzhen, this paper examines 

the application of opportunity window theory and dynamic capability theory in corporate globalization strategies. 

It investigates how enterprises identify optimal timing for internationalization and the critical importance of 

leveraging domestic and global environmental opportunities for overseas expansion. The findings reveal that 

enterprises' acute market insights enable windows of opportunity’s identification and responsiveness to 

international demands, meanwhile, the enhancement of dynamic capabilities is crucial in seizing these 

opportunities, transforming them into core competitive advantages, and ultimately bolstering corporate 

competitiveness, thereby ensuring the successful implementation of globalization strategies. 

 

Keywords: New Energy Vehicles (NEVs); environmental scanning; windows of opportunity; global expansion 

strategy; BYD 

 

Introduction

 

With the escalating challenges of global climate change and environmental pollution, promoting green economic 

transformation and low-carbon development in the automotive industry has emerged as a shared objective among 

nations worldwide. In this context, new energy vehicles (NEVs) have entered a period of rapid development due 

to their demonstrated advantages in reducing carbon emissions and energy consumption. Governments globally 

have implemented incentive policies – including purchase subsidies, tax incentives, and free parking privileges – 

to stimulate NEV adoption. Concurrently, growing consumer recognition of eco-friendly transportation solutions 

has driven sustained market demand expansion. This dual momentum of policy support and environmental 

consciousness has positioned the NEV sector as a critical pathway for achieving sustainable mobility and meeting 

international climate commitments. 



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Leveraging advantages such as a massive consumer market, comprehensive industrial categories, advanced power 

battery technology, efficient industrial chain systems, and holistic innovation capabilities, China's automotive 

industry has successfully executed its "lane-changing competition" strategy and achieved late-mover catch-up, 

while attaining significant progress in its "going global" initiatives(J.T.Chen, 2023). Driven by multifaceted factors 

including policy support, market demand, and corporate technological innovation, China's new energy vehicle 

(NEV) industry has achieved remarkable developmental milestones, establishing a comprehensive industrial 

ecosystem with world-leading capabilities in core technologies such as battery systems, electric motors, and 

electronic controls. As domestic market saturation intensifies and competition escalates, Chinese NEV 

manufacturers are increasingly targeting international markets to pursue sustainable growth opportunities. 

As one of the earliest globalized industries worldwide, the automotive sector exerts strong multiplier effects on 

national economic development. It remains a critical battleground for international industrial competition and is 

frequently prioritized by late-developing nations as a strategic sector for technological catch-up efforts((J.T.Chen, 

2023). As a pioneering enterprise in China's NEV sector, BYD initiated its global strategic expansion as early as 

1998. Evolving from initial overseas deployments in battery and electronics businesses to subsequent commercial 

vehicle exports, and ultimately to its current phase of passenger vehicle globalization and overseas production 

capacity establishment, BYD has demonstrated noteworthy accomplishments in global markets. However, 

international market expansion entails navigating multifaceted uncertainties, including market volatility, 

technological barriers, trade disputes, tariff fluctuations, international public relations challenges, and geopolitical 

dynamics. Against this backdrop, an in-depth investigation into BYD's strategic practices holds significant 

theoretical and practical value—particularly regarding how the enterprise leverages systematic environmental 

scanning strategies to identify opportunity windows arising from institutional transitions, technological 

innovations, and market demands, while synergizing these insights with organizational dynamic capabilities to 

formulate effective globalization strategies. This research paradigm offers critical insights into the operational 

mechanisms through which emerging market enterprises transform environmental uncertainties into competitive 

advantages during internationalization processes. BYD was selected in this study, and a case study approach was 

employed to conduct an in - depth analysis. It focuses on two core research questions: first, how environmental 

scanning and the windows of opportunity theory are interconnected to facilitate successful corporate 

internationalization; second, how the enhancement of enterprise dynamic capabilities, in the context of responding 

to opportunity windows, is transformed into core competitive advantages for global expansion, thereby supporting 

the implementation of a comprehensive internationalization strategy. Compared to traditional quantitative research 

methods, the case study approach enables a profound exploration of specific practices and strategies during 

corporate internationalization. Through a detailed examination of BYD’s strategic evolution from product exports 

to full-spectrum globalization (including production capacity, technology, and brand expansion), this methodology 

vividly demonstrates the application of theoretical frameworks in real-world corporate operations. 

The innovation of this study lies in two aspects. First, it adopts a panoramic perspective on internationalization 

strategy research. Unlike previous studies that focused solely on product exports or single-market expansion, this 

research comprehensively analyzes BYD’s strategic deployments across multiple dimensions, including product 

globalization, overseas production capacity establishment, brand internationalization, and technology 

standardization. By systematically investigating BYD’s holistic globalization strategy, the study fully reveals its 

developmental trajectory and strategic patterns in global markets, providing new perspectives and analytical 

frameworks for understanding corporate internationalization processes.Second,The Window of Opportunity theory 

provides a theoretical framework for analyzing China's electric vehicle industry's "lane-changing competition" 

strategy and internationalization initiatives amid industrial transformation(Wang Jing，2024). the study constructs 

an analytical framework based on the window of opportunity theory. This framework explores how BYD identifies 



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changes in domestic and international institutional environments, technological innovations, and market demands 

through environmental scanning, captures potential opportunity windows, and strategically integrates its internal 

dynamic capabilities with external opportunities to formulate effective internationalization strategies. The 

framework not only enhances the understanding of BYD’s successful globalization practices but also contributes 

new empirical evidence to the development of corporate internationalization theory. Specifically, it demonstrates 

how enterprises align organizational adaptability with emerging market conditions, offering transferable insights 

for emerging market multinationals navigating institutional complexities and technological disruptions. 

The structure and organization of the paper includes the following sections: Literature Review (comprising 

Conceptual Framework, Theoretical Framework, and Research Commentary), Research Design (including 

Research Methodology, Case Selection and Data Sources, Variable Measurement, and Case Stage Classification), 

Case Analysis and Key Findings, and finally, Conclusion. 

 

Literature Review 

 

Environmental Scanning and windows of opportunity 

 

The concept of environmental scanning (ES) was first proposed explicitly in Aguilar’s book Scanning the Business 

Environment in 1967, defining it as an organizational practice of systematically collecting and interpreting external 

environmental information to identify trends or transformative signals, thereby informing strategic decision-

making. Subsequent research has expanded beyond the focus of "external environment", with scholars refining the 

definition of environmental scanning through multiple lenses: A process for acquiring external information 

(Aguilar F J, 1967; Austerity, 1993; Ngamkroeckjoti, 2008; Zhong, 2013), a management method or tool (Liao, 

2008; Haase H, 2011), a business intelligence mechanism integrating internal and external factors (Bedford D, 

2015), an Information retrieval activities in business contexts (Wang, 2004), a comprehensive environmental 

monitoring system for competitive intelligence(Zhong, 2012). Although scholars have varying emphases in their 

understanding of environmental scanning, the consensus lies in its role in serving strategic decision-making. This 

process involves thoroughly identifying and analyzing events, trends, as well as key drivers and subtle signals 

(Maree C, 2010). By recognizing strategic threats and seizing opportunities in the external environment, and 

crafting corresponding strategic responses, enterprises can sustain their long-term competitive edge. The concept 

of "windows of opportunity" was first proposed by Perez and Soete (1988) to explain technological catch-up 

phenomena in latecomer countries. Lee and Malerba (2017) extended the concept to the industry level, categorizing 

it into three types: technological, demand, and institutional. The "demand window" specifically refers to emerging 

demand patterns, significant shifts in local demand, or business cycle changes (Mathews, 2005), later described in 

research as the "market opportunity window". Recent studies have shown that the alignment of opportunity 

windows with innovation strategies can significantly enhance the catch-up performance of latecomer enterprises, 

as evidenced by empirical research on Chinese manufacturing firms (Wu Xiaobo, 2019). Changes in external 

environments—technological, market, and institutional—create opportunity windows for companies to overtake 

through strategic maneuvers, necessitating organizational transformations to effectively respond to these windows. 

 

Dynamic Capabilities 

 

The concept of dynamic capabilities was first introduced by Teece et al. (1997), defined as a firm's ability to 

integrate, build, and reconfigure internal and external competencies to address rapidly changing environments. The 



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term 'dynamic' pertains to the firm's ability to adapt to shifting external conditions, ensuring the sustenance or 

reconstruction of competitive edges, whereas 'capabilities' underscore the pivotal role of strategic management in 

orchestrating and re-configuring organizational resources efficiently (Peng, 2019). Facing the complex and ever-

changing international market, enterprises need to leverage dynamic capabilities to integrate and reorganize 

internal and external resources, thereby adapting to market fluctuations and gaining a competitive advantage in 

global expansion.  

Enhanced dynamic capabilities enable firms to perceive environmental changes more swiftly and comprehensively. 

High perception ability helps companies achieve precise self-positioning, enhance the conversion efficiency of 

opportunity windows, accelerate the process of technological catch-up, and consolidate international market 

position. (Ma, 2023). Subsequent studies have clarify dynamic capabilities into three dimensions: adaptive 

capability (a firm’s ability to identify and capitalize on emerging market opportunities), absorptive Capability (a 

firm’s ability to recognize, evaluate and utilize the value of new external knowledge),  and innovative capacity (a 

firm’s ability to develop new products or markets, through aligning strategic innovative orientation with innovative 

behaviors and processes) (Wang et al., 2007). This tripartite framework, validated by Chinese scholars, 

demonstrates strong representativeness and paradigmatic value. Firms with heightened environmental sensing 

capabilities achieve rapid and thorough market cognition, thereby optimizing the translation of opportunity 

windows into strategic advantages. 

 

Corporate Global Expansion Strategy 

 

Global expansion is a natural progression for companies with mature industrial and managerial capabilities, serving 

as a critical strategic pathway for achieving international growth and sustainable development. This is supported 

by the fact that companies aim to achieve financial growth, which often involves expanding into new markets, 

accessing top talent, and diversifying their supply chains. Through overseas ventures, firms engage in technology 

complementarity and integration (Shi et al., 2024), expand market boundaries, reduce over-dependence on single 

markets, enhance brand value and global influence, drive technological innovation and industrial upgrading. 

Global expansion strategies are increasingly adopted as prudent responses to domestic market saturation and 

intensifying competition, aiming to consolidate global resources and strengthen supply chain resilience. 

However, the expansion of firms into international markets exposes them to a range of concentrated risks and 

environmental turbulence, encompassing geopolitical uncertainties, operational complexities, and the necessity for 

robust risk management strategies. (Zhang, 2024), necessitating meticulous timing and unequivocal strategic 

clarity. To overcome these obstacles, enterprises must adopt environmental scanning strategies, systematically 

identifying and assessing international institutional changes, technological advancements, and shifting market 

demands, ultimately grasping the multidimensional nature of these dynamics. Concurrently, by aligning these 

external opportunities with internal dynamic capabilities, firms can synthesize actionable global strategies, 

translating insights into phased implementation plans that harmonize organizational strengths with market realities. 

 

 

Research Commentary 

 

Environmental scanning serves as a strategic antecedent to corporate decision-making. Existing studies on 

environmental scanning primarily utilize quantitative methods to investigate its effects on firm performance and 

knowledge enhancement, albeit with scant exploration via mixed-methods approaches. While   the windows of 

opportunity constitute a critical focus of environmental scanning, their identification hinges on organizational 



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scanning behaviors. Current research predominantly focuses on categorizing Exploring opportunity window 

dimensions and analyzing their origins, the study pays scant attention to the integrated process of 'environmental 

scanning + opportunity window identification' as a continuous strategic mechanism. 

This study addresses this gap by adopting a case study methodology to incorporate opportunity window 

identification—underpinned by environmental scanning—into the strategic decision-making process of corporate 

global expansion. Through the lens of opportunity window theory, we analyze three pivotal dimensions: Timing 

of internationalization, Target market selection and positioning strategies, Strategic alignment between 

organizational dynamic capabilities and decision-making frameworks. By synthesizing these elements, this 

research elucidates the critical role of opportunity window theory in shaping effective global expansion strategies, 

offering a systematic framework to decode how firms transform environmental insights into actionable overseas 

deployment plans. 

 

Research Design 

 

Research Methodology 

 

Considering the complexity of the above-mentioned research question, we conducted a longitudinal single-case 

study approach, justified by the following considerations: The research focuses on the procedural question of 'how 

new energy vehicle (NEV) enterprises implement comprehensive global expansion strategies by capitalizing on 

opportunity windows', which naturally fits within the framework of case study methodology. The identification of 

internationalization timing and the phased, iterative process of seizing domestic and global opportunity windows 

require longitudinal analysis. An exploratory longitudinal single-case design serves to facilitate: Tracking strategic 

choices throughout various phases of opportunity windows, Performing a comprehensive multidimensional 

analysis of pivotal events, Identifying the fundamental determinants that underpin successful corporate 

globalization. This approach enables a systematic deconstruction of how firms dynamically synchronize external 

opportunity recognition with internal strategic execution, providing granular insights into the nexus between 

environmental scanning, capability orchestration, and global market penetration. 

 

Case Selection and Data Sources 

 

BYD Co., Ltd. in Shenzhen was selected as the case subject of this study, adhering to the following criteria: a. 

Typicality Principle. BYD epitomizes the successful globalization of Chinese independent automotive brands. As 

a pioneer in China’s NEV industry, it offers critical insights into identifying internationalization timing, capturing 

multidimensional opportunity windows, and achieving higher-tier growth amid the sector’s transition from labor-

intensive manufacturing to high-end, intelligent, and green transformation. b. Data Sufficiency Principle. Founded 

in 1994 and listed on the Hong Kong Stock Exchange (2002) and Shenzhen Stock Exchange (2011), BYD 

maintains high visibility globally, ensuring abundant publicly available data for rigorous analysis. 

To fulfill the triangulation requirements of case study methodology, this research integrates multi-source data: a. 

Primary Corporate Disclosures: Official website announcements, annual reports, and press releases from BYD’s 

authorized media channels. b. Academic and Media Publications: Peer-reviewed articles from databases (e.g., 

CNKI) and authoritative industry reports. c. Third-party Verification: Public interviews, news reports (via Baidu, 

Zhihu), and analyses by consulting agencies. This multi-layered data collection strategy ensures informational 

diversity and cross-validation, enhancing the study’s reliability and validity. 



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Variable Measurement 

 

In the variable measurement process, this study adopts definitions that best align with case data characteristics to 

operationalize three core constructs: Environmental Scanning +Windows of Opportunity, Dynamic Capabilities, 

Global Expansion Modes. The measurement framework is detailed in Table 1 below. 

 

Table 1: Constructs, Measurement Variables, and Keyword Lis 

Construct Measurement Variables Keywords 
Key 

References 

Environmental 

Scanning + 

Windows of 

Opportunity 

ES + Technological 

Window 

Public patent information, 

domestic/international technical standards, 

disruptive technologies (Shen et al., 

2016; Liu et 

al., 2024) 
ES + Demand Window 

Shifts in consumer preferences, 

purchasing power fluctuations 

ES +policy 

/ Institutional Window 

Industrial policy guidelines, tax subsidies, 

international agreements, regulatory acts 

Dynamic 

Capabilities 

Absorptive Capacity 
Strategic M&A, technology/talent 

acquisition, knowledge conversion 

(Zhou et al., 

2024) 
Adaptive Capacity 

Organizational flexibility, 

resource integration/reconfiguration,  

anticipatory decision-making 

Innovative Capacity 
R&D investments, product innovation, 

market penetration strategies 

Global Expansion 

Modes 

Product Globalization Trade partnerships, direct/indirect exports 

(Tang, 2022) 
Capacity Globalization 

Overseas plant construction, 

cross-border investments and acquisitions 

 

Key Milestones in the Case Firm’s Global Expansion 

 

BYD has cultivated its “Product Globalization” and “Capacity Globalization” strategies for over three decades, 

with critical milestones in its global industrial layout illustrated in Figure 1. 

BYD (Build Your Dreams) was founded on November 18, 1994. In 1998, BYD set foot in the Netherlands with its 

inaugural overseas subsidiary, signaling the dawn of its global expansion. In 2010, BYD embarked on a strategic 

shift towards 'electrifying urban public transportation', successfully venturing its commercial vehicles into 

international markets. In 2013, BYD established its inaugural overseas electric vehicle manufacturing facility in 

California, USA, focusing on the production of the all-electric bus model K9. In 2021, BYD chose Norway as its 

European launchpad for passenger vehicle exports. In March 2023, the company held a groundbreaking ceremony 

for its first overseas passenger vehicle production base in Thailand. By December of the same year, BYD 

announced plans to construct a new energy vehicle (NEV) production base in Szeged, Hungary, progressively 

securing a strategic foothold in the global passenger vehicle market. 

 

 

 

 



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Figure 1: Key Milestones of BYD’s Global Industrial Expansion 

 

 
From its initial battery product exports in 1998 to achieving full-scale PV capacity globalization by 2023, BYD 

has systematically leveraged latecomer advantages by seizing technological, market, and institutional windows of 

opportunity amid global shifts. Strategic initiatives have significantly expedited BYD’s evolution from a 

component supplier to a globally recognized leader in the New Energy Vehicle (NEV) ecosystem. 

 

Case Analysis and Key Findings 

 

BYD’s "Product Globalization" Strategy 

 

Globalization of BYD’s Battery and Electronics Business  

 

In 1994, the founder of BYD, Wang Chuanfu identified a critical event through environmental scanning: Japan’s 

discontinuation of nickel-cadmium battery production. Recognizing this as an unprecedented window of demand 

opportunity for Chinese battery manufacturers, he mobilized R&D efforts to master nickel-cadmium battery 

technology, laying the foundation for BYD’s battery and electronics business. By 1997, amidst the trend of 

plummeting global battery prices triggered by the Southeast Asian financial crisis, BYD ingeniously implemented 

a "technology-for-market strategy", capturing 40% of the global nickel-cadmium battery market within three years 

and achieving annual sales exceeding 100 million CNY. 

Drawing on insights from environmental scanning, including event-trend correlations and experiences gained from 

success in the Chinese market, BYD expanded globally by establishing subsidiaries in the Netherlands (1998) and 

the United States (1999), and began exporting mobile phone batteries and electronic components. Table 2 outlines 

the timeline of BYD’s battery and electronics product globalization. 

 

 

 

 

 



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Table 2: Battery and electronics product globalization of BYD 

Time Period Typical Supporting Data Core Category 
Main 

Category 

1994-1999 

1. Japan announced the discontinuation of domestic nickel-

cadmium battery production. 

ES 

+Demand 

Window Environment

al Scanning 

+ Windows 

of 

Opportunity 

2. Became a supplier for companies like Daba and gained 

prominence in competition with industry giants (e.g., Sanyo), 

significantly enhancing global brand influence. 
ES 

+Technologica

l Window 
3. Transitioned battery technology from nickel-cadmium to 

nickel-metal hydride and lithium-ion batteries, pioneering 

the development of lithium-ion battery production lines. 

1. Established a European subsidiary in the Netherlands 

(1998), focusing on OEM businesses such as mobile phone 

batteries and components. 
Product 

Trade/OEM 

Business 

Product 

Globalizatio

n 2. Founded a North American subsidiary in Los Angeles 

(1999), specializing in mobile phone battery sales. 

 

Globalization of BYD’s Commercial Vehicles 

 

In 2010, BYD’s commercial vehicle division utilized its “7+4” Full Market Strategy Framework, giving priority 

to new energy buses and coaches, thereby widely implementing electric vehicle (EV) technologies in road 

transportation. In November of that year, the company introduced the innovative “Urban Public Transportation 

Electrification” solution, with the objective of reducing energy consumption and mitigating urban pollution 

resulting from traditional public transit systems. 

As of December 2024, BYD’s new energy commercial vehicles—represented by its electric buses—have 

penetrated six continents, more than 100 countries and regions, and over 400 cities. This expansive global presence 

demonstrates how "environmental scanning + windows of opportunity" have empowered BYD to Monitor 

emerging trends through environmental surveillance and assess the impact of situational shifts on strategic 

decision-making. Table 3 outlines key milestones in BYD’s commercial vehicle globalization (partial). 

 

Globalization of BYD’s Passenger Vehicles 

 

Amid the centenary global transformation and the rapid disruption of the automotive industry in 2021, spurred by 

China's dual-carbon policy objectives, BYD successfully unleashed its accumulated strategic momentum across 

four core sectors: automotive, rail transit, new energy, and electronics. The passenger vehicle division embarked 

on a golden age marked by technological innovation, product upgrades, and market expansion. 

Capitalizing on Norway’s institutional and the windows of market opportunity—including world-leading NEV 

adoption rates, abundant hydro-power resources, tax incentives, and road tax exemptions—BYD forged a strategic 

alliance with RSA Automotive Dealer Group. In May 2020, it entered the Norwegian market with the Tang EV as 

its flagship model. Subsequently, in May 2021, BYD formally launched its "Passenger Vehicle Globalization 

Strategy", accelerating NEV deployment across global markets. Table 4 outlines key milestones in BYD’s 

Passenger Vehicle Globalization Milestones (Partial). 



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Table 3: BYD’s commercial vehicle globalization (partial) 

Time 

Period 
Typical Supporting Data Core Category 

Main 

Category 

2008-

2019 

1. Accelerated internationalization since 2008, coinciding with 

global efforts to address resource constraints. 
ES 

+Institutional 

Window 

Environmental 

Scanning  

+ Windows of 

Opportunity 

2. Capitalized on growing global sustainability awareness and 

institutional opportunities by aligning with the Belt and Road 

Initiative, establishing branches and production bases along 

key routes. 

1. Pioneered core technologies: "Three Electric" systems, 

wheel-side drive technology, and Blade Battery. 
ES 

+Technological 

Window 
2. Deepened R&D in electric buses and advanced 

globalization through the acquisition of Sanxiang Bus. 

1.Electric buses offered dual advantages in economic 

efficiency and social impact as urban transit solutions. 

ES  

+ Demand Window 

2. Prioritized B2B markets (public transit) over B2C markets 

(passenger vehicles) to leverage cost-effectiveness and build 

global brand recognition. 

3. Actively captured international markets by addressing 

stringent environmental regulations and high battery costs. 

1. 2011: Exported K9 electric buses to the U.S. 

Commercial 

Vehicle Trade 

/Direct Export 

Product 

Globalization 

2. 2012: Secured 700 electric bus orders from Israel; orders 

from Finland’s Veolia Transport; signed LOI with Windsor, 

Canada for 10 electric buses; delivered Green-city buses to 

Uruguay. 

3. 2013: K9 debuted in London; obtained EU WVTA 

certification for unrestricted EU sales; showcased buses in the 

Netherlands. 

4. 2014: K9 launched in Australia, completing a five-continent 

footprint. 

5. 2015: Partnered with Thailand’s Loxley Group on K9/e6 

deployments ("Thailand Bus Electrification Strategy"); 

entered Tokyo, Japan; unveiled the world’s first pure-electric 

double-decker bus in London; signed green transit agreements 

with Denmark, Singapore, and Chile. 

6. 2016: Secured orders in Indonesia and Brazil; supported the 

Olympics with Africa’s first all-electric fleet. 

7. 2017: Delivered electric buses/trucks to California; won the 

Netherlands’ largest mid-size electric bus order; deployed 

fleets in Italy and Israel. 

8. 2018: Expanded to Norway, South Korea, Chile, Germany, 

and Hungary; launched first electric bus fleets in Egypt, 

Portugal, and Denmark. 



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9. 2019: Secured orders in Argentina; debuted electric trucks 

in Spain; delivered electric forklifts to Australia; introduced 

electric sanitation vehicles in Silicon Valley. 

 

 

Table 4: BYD Passenger Vehicle Globalization Milestones (Partial) 

Time 

Period 
Typical Supporting Data Core Category Main Category 

2020 

-Present 

Norway’s high NEV adoption rate, abundant hydropower 

resources, and institutional incentives (e.g., 25% VAT 

exemption, reduced road taxes) created a favorable institutional 

window. Partnered with RSA Alliance to launch the BYD Tang 

EV in Norway. 

ES 

+Institutional   

Window 

Environmental 

Scanning + 

Windows of 

Opportunity 

The E6 pure electric and F6DM dual-mode EVs featured 

BYD’s self-developed DM electric system powered by iron-

phosphate batteries, overcoming challenges in repeated 

charging and household socket compatibility. 

ES 

+Technologica

l Window 

Israel’s compact geography, mature charging infrastructure, 

and high market readiness presented a strategic market window. 

ES 

+Demand 

Window 

1.May 2021: Announced the "Passenger Vehicle 

Globalization" plan, initiating global NEV expansion. 

Passenger 

Vehicle 

Globalization 

Product 

Globalization 

2. July 2022 onward: NEV passenger vehicles entered Japan, 

Germany, Australia, Brazil, Thailand, and others. 

3. October 2022: Partnered with Shell to provide access to 

300,000 charging points in Europe. 

4. 2023: penetrated 59 countries/regions globally, with exports 

surging 337%, ranking first among Chinese brands. 

 

Through over a decade of brand equity building and technological iteration, coupled with its proven expertise in 

commercial vehicles, BYD rapidly established a global passenger vehicle sales network. Since July 2022, its NEV 

passenger vehicles have successively entered markets including Japan, Germany, and Australia. At the Paris Motor 

Show, BYD partnered with Shell to announce access to 300,000 charging points across Europe, propelling the 

accelerated evolution of its globalization strategy. 

 

BYD’s "Capacity Globalization" Strategy 

 

Guided by its profound understanding and precise identification of multidimensional windows of opportunity—

spanning current "events" and future "trends" in the NEV market—BYD has strategically deployed production 

capacities overseas. By leveraging technological advancements, cost reductions, policy incentives, market access, 

shifting consumer demands, and supply chain diversification, as demonstrated by BYD's global expansion and cost 

control strategies, BYD has rapidly ascended in the global NEV market through advanced experience absorption, 



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resource optimization, and innovation enhancement. Table 5 outlines key milestones in BYD’s capacity 

globalization (partial). 

 

Table 5: BYD Capacity Globalization Milestones (Partial) 

Globalization 

Phase 
Time Location Key events 

Commercial 

Vehicle 

Capacity 

Globalization 

2013 
United 

States 

Established first overseas electric bus (K9) factory in California—the 

first wholly Chinese-funded NEV factory. 

2014 Brazil 
Built electric bus factory; partnered with local bus manufacturer 

Marcopolo for local assembly in 2015. 

2016 Hungary 
Constructed bus factory and R&D center in Komárom for electric 

truck production. 

2017 

France Launched electric bus plant in Beauvais, operational by 2018. 

Ecuador 
Invested in pure-electric bus factory, deepening bilateral NEV 

collaboration. 

Morocco 
Built factory in Tangier (operational 2021) producing batteries, large 

EVs, and monorail trains. 

2018 
Chennai, 

India 
Commenced production of K7/K9 electric bus batteries and chassis. 

2023 Mexico 
Supplied electric bus chassis for localized assembly via Marcopolo 

partnership. 

Passenger 

Vehicle 

Capacity 

Globalization 

2023 

Thailand 
Held groundbreaking ceremony for first overseas PV production base 

(annual capacity: ~150,000 units). 

Uzbekistan 

Launched joint venture under Investment Agreement for EV/Hybrid 

Vehicle and Component Production; Phase 1 produces Chazor and 

Song Plus; targets 300,000 annual capacity. 

Hungary 
Initiated NEV production hub in Szeged City, Hungary—BYD’s first 

EU-based manufacturing facility. 

2024 

Indonesia 
Broke ground on $1.3 billion plant with 150,000-unit annual 

capacity. 

Brazil 
Began construction of mega-production complex (3 plants) in 

Camaçari, Bahia State, targeting 150,000 PVs annually. 

 

Globalization of BYD’s Commercial Vehicle Production Capacity 

 

The globalization of BYD’s commercial vehicle production capacity—driven by demand orientation, cost 

efficiency, favorable policy incentives, and effective risk mitigation—emerged as an inevitable outcome of its 

comprehensive environmental scanning to exploit multidimensional opportunity windows. In May 2013, marked 

by the groundbreaking of BYD’s electric vehicle factory in Lancaster, California, marking the entry of this 

initiative into a strategic upgrade phase. 

BYD’s selection of target countries for production capacity deployment hinges on three criteria. Industrial 

Infrastructure: Host countries must possess automotive manufacturing foundations, including skilled labor, 



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complete supply chains, and mature industrial capabilities. BYD often leverages idle production capacity through 

third-party acquisitions to reduce costs—exemplified by its factories in Thailand and Brazil. Policy and 

Geopolitical Alignment: Target markets should demonstrate clear governmental support for EVs, political stability, 

and China-friendly diplomatic relations. Regions prioritized include Southeast Asian countries, Central and 

Eastern European nations, and Latin American markets like Mexico and Brazil. Emerging Market Advantage: 

Developing countries lack dominant domestic car brands, which provides an opportunity for BYD to rapidly 

capture market share through localized production. 

 

Table 6: Key Behavioral Evidence of BYD’s Dynamic Capability Enhancement and Core Advantage 

Transformation 

Globalization 

Mode 
Construct 

Measurement 

Variables 
Key Behavioral Evidence 

Implementation 

Path 

& Advantage 

Transformation 

Product 

Globalization 

Absorptive 

Capacity 

Technological 

Absorption 

1.Imitative Innovation: The first 

model, Flyer, reverse-engineered from the 

Suzuki Alto by Shaanxi Qin Chuan Auto; 

the best-selling F3 model derived from the 

Toyota Corolla. 

Identified cross 

-industry 

technological 

opportunities 

(battery-to-auto), 

applied 

electronics 

expertise to NEV 

commercializatio

n, achieved 

leapfrog 

development via 

M&A, 

technology 

acquisition, and 

resource 

reconfiguration. 

2. Integrated Innovation: Established JVs 

with Daimler and San Xiang Bus; 

partnered with Beijing Institute of 

Technology and Singapore’s A*STAR for 

technical knowledge. 

3. Independent Innovation: Dual 

-platform strategy (BEV/PHEV), world-

leading "Three Electric" technologies, 

Blade Battery, IGBT4.0 chips, and DM-i 

Super Hybrid. 

Market 

Absorption 

1. Produced 6 million NEVs by 

November,2023; exported 252,000 NEVs 

in 2023 (+457.66% YoY). 

2. Captured >50% U.S. electric bus market 

share (2020); 20% European NEV market 

share (2023), ranking global No.1. 

Adaptive 

Capacity 

Market 

Adaptation 

Product Diversification: a. Portfolio spans 

EVs, PHEVs, ICEVs to meet diverse 

market demands. b. Customized R&D for 

regional driving habits and preferences. 

Institutional 

agility to align 

with 

sustainability 

mandates and 

social 

Institutional 

Adaptation 

1.Economic Adaptation: Leveraged "dual-

carbon" policy windows to globalize 

NEVs. 



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2. Social Adaptation: "People-oriented" 

HR policies; BYD Charity Foundation 

(est. 2010) for tech-driven poverty 

alleviation. 

responsibility 

imperatives. 

3.Environmental Adaptation: Full-cycle 

battery ecosystem (production -recycling-

reuse); "Cool the Earth by 1°C" initiative; 

carbon management systems aligned with 

global decarbonization. 

Organizational 

Culture 

Adaptation 

Adopted "4+4 Strategy" (4 SUVs + 4 

sedans) with region-specific branding and 

marketing. 

Localized 

branding to 

reduce costs and 

enhance cultural 

resonance. 

Innovative 

Capacity 

Product 

Innovation 

Disruptive product iterations: Expanded 

lineup with four sub-brands (BYD, Denza, 

Yang Wang, Fang Cheng Bao) covering 

premium markets. 

Rapid response 

to market and 

techno 

-logical windows 

of opportunity. 

Technological 

Innovation 

1.Vertical integration from Blade Battery 

to e-Platform 3.0 and four-motor "Yi 

Sifang" systems. 

Sustained R&D 

investment to 

secure 

technological 

leadership. 

2.Filed 37,869 Chinese patents and 10,192 

international patents by Dec 2023 (Source: 

BYD 2023 CSR). 

Capacity 

Globalization 

Absorptive 

Capacity 

Experience 

Absorption 

Adopted international best practices in 

production management. 

Enhanced 

overseas 

production 

efficiency and 

cohesion through 

cross-cultural 

talent integration. 

Talent 

Absorption 

Recruited and trained global talent for 

overseas operations. 

Supply 

Chain 

Absorption 

Integrated global suppliers for stable raw 

material and component sourcing. 

Adaptive 

Capacity 

Market 

Adaptation 

1. Global Layout: 30+ industrial parks 

across six continents. 

Built closed-loop 

industrial chains 

(upstream 

materials 

→midstream 

components→ 

downstream 

vehicles) for 

synergistic 

advantages. 

2.Localized Production: Tailored 

manufacturing to regional regulations. 

3. Full-chain Integration: Synergized 

R&D, procurement, and sales to establish 

local EV dominance. 



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Organizational 

Structure 

Adaptation 

Restructured in 2021: merged PV/CV sales 

divisions into "Auto Sector," divided sales 

into four specialized business units. 

Streamlined 

operations to 

accelerate 

product 

lifecycles and 

channel 

optimization. 

Organizational 

Culture 

Adaptation 

Fostered cross-cultural cohesion among 

global teams. 

Leveraged 

cultural diversity 

to create a 

"flywheel effect" 

of soft power. 

Innovative 

Capacity 

Technological 

Innovation 

1. Deployed advanced production tech in 

overseas plants. 

"Foundational+ 

Competitive" 

resource 

allocation model 

for efficiency 

gains. 

2. Collaborated with global R&D 

institutions. 

Managerial 

Innovation 

Optimized processes using international 

management systems. 

 

Globalization of BYD’s Passenger Vehicle Production Capacity 

 

In March 2023, BYD held a groundbreaking ceremony for its first overseas passenger vehicle (PV) production 

base in Thailand, marking a new chapter in its global expansion. BYD’s selection of Thailand was driven by the 

country's solid automotive industrial base and manufacturing prowess, along with a keen eye for institutional and 

market opportunities in Thailand’s NEV sector. With policy incentives like the development of charging 

infrastructure, smart grid construction, and tax reductions for NEVs, Thailand's NEV market has expanded rapidly, 

exerting considerable market pull. Geographically, Thailand’s strategic positioning—with a long coastline, 

proximity to China (north) and ASEAN nations (south), and access to over 20 international ports—provides 

unparalleled export advantages. Notably, Thailand’s low-trade-barrier agreements with Japan and Australia 

position it as a potential NEV hub in Southeast Asia, facilitating BYD’s strategic advancement. 

In December 2023, BYD announced plans to build an NEV PV production base in Szeged, Hungary, becoming 

the first Chinese automaker to set up a PV manufacturing plant in the EU. This move underscores BYD’s 

commitment to the European market and its acute awareness of global NEV opportunity windows. As an EU 

member, Hungary boasts convenient transportation networks, a robust industrial base, and a favorable business 

environment, serving as a strategic base for BYD to further penetrate the European marketing. 

Enhancement of BYD’s Dynamic Capabilities and Transformation of Core Globalization Advantages: BYD’s 

strategic transition from 'product globalization' to 'capacity globalization' fundamentally reflects a dynamic 

adaptation to global industrial restructuring trends. Its absorptive capacity enables rapid assimilation of global 

advanced technologies and management practices; its adaptive capacity allows agile strategic adjustments to 

navigate complex markets; and its innovative capacity drives breakthroughs in products, technologies, and services. 

BYD’s acute sensitivity to technological trends, market dynamics, and institutional shifts underpins its global 

competitive edge. Table 6 outlines key behavioral evidence of BYD’s dynamic capability enhancement and core 

advantage transformation. 

 



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Conclusion 

  

This study employs an exploratory single-case methodology to uncover critical determinants of successful 

corporate globalization. Our findings demonstrate that acute market insights enable firms to identify windows of 

opportunity and respond to global demands, while enhanced dynamic capabilities facilitate opportunity conversion 

and core advantage transformation, ensuring effective implementation of globalization strategies. The primary 

conclusions are as follows: First, environmental scanning serves as an indispensable precursor to strategic 

decision-making in globalization. By integrating qualitative analysis, this study highlights how environmental 

scanning drives opportunity window identification and strategic alignment. Through systematic scanning, firms 

gain comprehensive insights into international market dynamics, competitive landscapes, and regulatory shifts, 

enabling them to seize favorable conditions, mitigate risks, and substantiate overseas expansion decisions.  

Second, windows of opportunity discovery act as the driving force for strategic choices. This research extends the 

application of opportunity window theory to corporate globalization strategy formulation. Successful 

internationalization demands acute opportunity sensitivity—identifying latent market potentials through 

environmental scanning. Such identification not only shapes the timing and target markets of globalization but also 

determines market positioning strategies and the strategic fit between dynamic capabilities and organizational 

decisions. Third, continuous optimization of dynamic capabilities is imperative for adapting to global market 

volatility. Firms must perpetually refine their competitive edge through product innovation, technological 

breakthroughs, and process reengineering, thereby achieving creative transformation of opportunity windows into 

sustainable advantages. 

The findings of this study offer practical guidance for Chinese new energy vehicle (NEV) enterprises to 

advance internationalization and achieve sustainable development. Initially, enterprises ought to augment 

their investment in environmental scanning and establish formalized systems to meticulously monitor 

and dissect external factors, such as international market trends, competitive terrains, and regulatory 

changes, thereby furnishin comprehensive and precise insights for their global expansion strategies. 

Second, enterprises must develop a keen market foresight by building robust information collection and 

analysis systems to enhance the accuracy and timeliness of opportunity window identification. Third, 

firms need to continuously adapt and enhance their dynamic capabilities in response to global market 

evolution and internal growth imperatives. Fourth, strategic globalization decisions must rigorously 

evaluate the alignment between identified opportunity windows and dynamic capabilities. Through 

scientific and rational strategic planning, firms can seize favorable conditions, mitigate risks, and achieve 

stable overseas growth. 

First, Enhance the Policy Support System. Governments should formulate specialized policies to support the 

international expansion of the new energy vehicle (NEV) industry, encompassing financial subsidies, tax 

incentives, and financial support. For instance, providing capital subsidies for NEV enterprises establishing 

overseas production facilities could reduce internationalization costs and risks. Strengthen the coordination and 

integration of industrial policies, trade policies, and diplomatic strategies to create synergistic policy effects. 

Diplomatic channels should be leveraged to foster favorable international conditions, including enhanced 

intergovernmental collaboration with key target markets and the negotiation of bilateral/multilateral agreements, 

thereby securing institutional safeguards for overseas investments and market penetration. 

Second, Strengthen Public Services. Relevant government departments should establish an NEV industry 

internationalization information service platform to provide enterprises with overseas market intelligence, 

regulatory frameworks, and technical standardization requirements, enabling timely responses to market dynamics. 



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Implement talent development and recruitment programs to cultivate professionals in NEV-related fields, while 

incentivizing overseas high-skilled experts to contribute to domestic innovation ecosystems. This dual approach 

ensures human capital reinforcement for global expansion initiatives. Third, Promote Industrial Collaboration. 

Governments should facilitate synergistic cooperation across the NEV industrial chain to harness cluster 

advantages. Encourage component suppliers to elevate product quality and technological sophistication, thereby 

bolstering the competitiveness of vehicle manufacturers in global markets. Foster industry-university-research 

partnerships to advance R&D in critical generic technologies (e.g., solid-state batteries, intelligent driving systems), 

enhance indigenous innovation capabilities, and establish a technological foundation for international market 

penetration. 

This study has the following research limitations and shortcomings: First, this paper relies solely on third-party 

public data collected from corporate websites, databases, and related platforms for analysis. The research content 

may not be comprehensive, and there may be discrepancies in data analysis compared to the actual situation of 

enterprises. Second, this study adopts a single-case analysis approach, and the generalizability of the analytical 

conclusions may be inferior to that of multi-case comparative analyses. 

Given the limitations of single-case analysis in generalizability, future studies should select multiple representative 

new energy vehicle (NEV) enterprises as research subjects for comparative multi-case analysis. By systematically 

contrasting similarities and differences in internationalization strategies, opportunity window utilization, and 

dynamic capability deployment across enterprises, researchers can more profoundly reveal universal patterns and 

critical determinants underlying the globalization of the NEV industry, thereby enhancing the generalizability of 

research findings. As for Research methodology. Future investigations could further integrate quantitative 

methodologies such as statistical analysis and econometric modeling. Large-scale quantitative analysis of 

corporate data would enable validation of conclusions derived from case studies, thereby providing stronger 

empirical support for theoretical frameworks. Simultaneously, the application of quantitative models could predict 

developmental trajectories and potential influencing factors in NEV industry globalization, offering enterprises 

and policymakers a more forward-looking decision-making basis. 

 

Declaration 

 

This is to declare that this manuscript is an original work and has not been submitted for publication elsewhere. 

 

Acknowledgment: N/A 

 

Funding:  Soft Science Research Program of Zhejiang Province (2025C25022);  

The German-speaking Countries Regional Studies Project of Zhejiang University of Science and Technology 

(2023DEGB008);  

The Major Teaching Research and Reform Project of Zhejiang University of Science and Technology (2024-jg02);  

The Graduate Course Construction Project of Zhejiang University of Science and Technology (F464107N04). 

 

Conflict of interest: The author declares no conflict of interest. 

 

Ethics approval/declaration: The study is in line with ethical standards. 

 

Consent to participate: All participants provided informed consent to participate in this study. 

 



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Consent for publication: Yes, the author consents to the publication of this work. 

 

Data availability: Public. 

 

Authors contribution: All authors contributed significantly and equally in this study. 

 

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