Editing BYD Auto (section)

=== 2003–2008: Establishment and early years ===
BYD Company was founded in 1995 as a battery manufacturer. In January 2003, BYD Company founder [[Wang Chuanfu]] founded BYD Auto after acquiring and renaming a dwindling small automotive manufacturing company, Xi'an Qinchuan Automobile, from a [[State ownership|state-owned]] [[Arms industry|defense]] company [[Norinco]]. The company was acquired for [[Hong Kong dollar|HK$]]269 million in exchange for a 77% stake, shortly after BYD raised HK$1.6 billion on the [[Hong Kong Stock Exchange]] in July 2002.<ref name="Sina Finance-2023">{{Cite web |last= |date=2023-08-19 |title=当下的比亚迪，能不能代表中国汽车？ |trans-title=Can current BYD represent Chinese automobiles? |url=https://finance.sina.cn/stock/relnews/hk/2023-08-19/detail-imzhtrfw0743695.d.html |access-date=2023-12-25 |website=Sina Finance}}</ref><ref>{{Cite book|last=Thraen|first=Joachim Jan|url=https://books.google.com/books?id=bD2sDAAAQBAJ&q=tsinchuan++byd+company&pg=PA115|title=Mastering Innovation in China: Insights from History on China's Journey towards Innovation|date=2016-07-13|publisher=Springer|isbn=978-3-658-14556-9|language=en}}</ref><ref>{{Cite book|last1=Wang|first1=Jiazhuo G.|url=https://books.google.com/books?id=Jz-5BAAAQBAJ&q=buffet+byd+auto&pg=PA15|title=Who Gets Funds from China's Capital Market?: A Micro View of China's Economy via Case Studies on Listed Chinese SMEs|last2=Yang|first2=Juan|date=2014-01-13|publisher=Springer Science & Business Media|isbn=978-3-642-44913-0|language=en}}</ref><ref>{{cite web |author=Anne C. Lee |date=17 February 2010 |title=Most Innovative Companies - 2010: BYD |url=http://www.fastcompany.com/mic/2010/profile/byd |url-status=dead |archive-url=https://web.archive.org/web/20120217170916/http://www.fastcompany.com/mic/2010/profile/byd |archive-date=17 February 2012 |publisher=Fast Company}}</ref> The acquisition was met with disapproval from shareholders, as the plan was not disclosed in the [[Prospectus (finance)|prospectus]].<ref name="Breevoort-2021">{{Cite web |last=Breevoort |first=Leo |date=2021-08-01 |title=The Big Read: History of BYD |url=https://carnewschina.com/2021/08/01/the-big-read-history-of-byd/ |access-date=2023-11-14 |website=CarNewsChina.com |language=en-US}}</ref> Wang Chuanfu acquired Qinchuan with the intention of developing battery-powered electric vehicles, leveraging BYD's expertise in battery manufacturing.<ref>{{Cite web |last1=White |first1=Edward |last2=Campbell |first2=Peter |date=2022-07-09 |title=The 'nutty' professor behind rise of China's electric vehicle giant |url=https://www.ft.com/content/367af909-5cdb-4780-a577-b84f815bcddd |access-date=2023-12-22 |website=Financial Times |publisher=The Financial Times Limited}}</ref><ref>{{Cite web |date=2008-12-11 |title=比亚迪F3DM将上市 王传福称比亚迪是象征-搜狐汽车 |trans-title=BYD F3DM will be listed on the market Wang Chuanfu said BYD is a symbol |url=https://auto.sohu.com/20081211/n261157111.shtml |access-date=2024-04-24 |website=Auto Sohu}}</ref> As Qinchuan had been manufacturing cars since 1987, the purchase gave BYD access to car manufacturing technology and an automobile production license that was difficult to obtain at that time.<ref name="Schenau">{{cite web |last=Van Ingen Schenau |first=Eric |date=2008 |title=Catalogue of the Present Chinese Motorcar Production |url=http://file.cio360.net/s/f/2009/1252913169mka5f.pdf |archive-url=https://web.archive.org/web/20160304104325/http://file.cio360.net/s/f/2009/1252913169mka5f.pdf |archive-date=2016-03-04 |publisher=China Motor Vehicle Documentation Centre |page=36 |location=Ortaffa, France}}</ref><ref>{{citation |last=Chang |first=Crystal |title=Developmental Strategies in a Global Economy: The Unexpected Emergence of China's Independent Auto Industry |date=2009-08-09 |page=13 |ssrn=1450117}}</ref> At the time of the acquisition, Qinchuan was producing a small car called the QCJ7181 Flyer, which BYD renamed to [[BYD Flyer]] from 2005. Limited capacity at the former Qinchuan manufacturing plant in [[Xi'an|Xi'an, Shaanxi]] prompted BYD to construct a new manufacturing plant in the Xi'an Development Zone within the city.<ref name="Quartz-2018">{{Cite web |date=2018-12-13 |title=Inside BYD—the world's largest maker of electric vehicles |url=https://qz.com/1492853/inside-byd-largest-electric-vehicles-maker |access-date=2023-11-11 |website=Quartz |language=en}}</ref>

The first car developed by BYD, codenamed 316, was rejected by dealers due to its poor styling and was scrapped before reaching the market, writing off [[CN¥]]100 million of [[research and development]] (R&D) expenses as a result.<ref name="Mehta-2021">{{Cite web |last=Mehta |first=Adesh |date=2021-04-25 |title=BYD: How the Former EV Pioneer Will Win the New Battle |url=https://medium.com/batterybits/byd-how-the-former-ev-pioneer-will-win-the-new-battle-92f989067ef5 |access-date=2023-11-11 |website=BatteryBits (Volta Foundation) |language=en}}</ref> Wang Chuanfu personally smashed the [[prototype]] to destroy it.<ref>{{Cite web |date=2006-04-24 |title=王传福忍痛砸毁316 比亚迪孤注一掷F3-搜狐汽车 |trans-title=Wang Chuanfu reluctantly smashed the BYD 316, went all-in on the F3 |url=https://auto.sohu.com/20060424/n242961914.shtml |access-date=2023-12-22 |website=Auto Sohu}}</ref> The company instead developed the [[BYD F3]] sedan, which entered production on 16 April 2005, with an affordable price tag of CN¥73,000 (approximately US$10,000). Bearing resemblance to the [[Toyota Corolla]] with a lower price, the F3 quickly gained popularity and became a successful model with over 63,000 units sold that year.<ref name="Quartz-2018" /><ref name="Mehta-2021" /> The 100,000th F3 rolled off the assembly line on June 18, 2007, just 20 months after production began. Following this success, the larger [[BYD F6]] sedan, which was modelled after the [[Honda Accord]], entered production in August 2007.<ref>{{Cite journal |last1=Wang |first1=Hua |last2=Kimble |first2=Chris |date=2010 |title=Betting on Chinese electric cars? &ndash; analysing BYD's capacity for innovation |url=http://www.inderscience.com/link.php?id=31457 |journal=International Journal of Automotive Technology and Management |language=en |volume=10 |issue=1 |pages=77 |doi=10.1504/IJATM.2010.031457 |issn=1470-9511|url-access=subscription }}</ref><ref>{{Cite web |last=McNabb |first=Mark |date=2014-12-21 |title=2014 BYD F6 |url=https://www.topspeed.com/cars/byd/2014-byd-f6/ |access-date=2023-12-30 |website=TopSpeed |language=en |quote=Modeled after the Honda Accord, the car does share some similarities with the Accord’s exterior, but overall has its own BYD flavor.}}</ref> Initially, BYD cars are equipped with Chinese-built [[Mitsubishi Motors]] older engines, but within a few years, BYD Auto created its own engines by improving Mitsubishi Motors engine blueprints.<ref name="Breevoort-2021" /><ref>{{Cite news |last=Ally |date=2007-07-20 |title=BYD Auto to launch F6, F8 within 2007 |url=https://autonews.gasgoo.com/Detail2020.aspx?ArticleId=2673 |access-date=2023-11-14 |website=Gasgoo}}</ref><ref name="1miModel3">{{cite news |last= |first= |date=2008-01-14 |title=BYD Auto Introduces Plug-in Hybrid Electric Vehicle in Detroit; On Sale This Year in China |url=https://www.greencarcongress.com/2008/01/byd-auto-introd.html |access-date=2023-11-14 |website=Green Car Congress |publisher=}}</ref><ref>{{Cite web |last=Williams |first=Kevin |date=2022-11-10 |title=Driving the BYD Atto 3 Proves China Is a Major Automotive Threat |url=https://jalopnik.com/byd-atto-3-first-drive-chinese-electric-crossover-1849766606 |access-date=2023-11-14 |website=Jalopnik |language=en}}</ref>
[[File:2009 BYD F3 1.5L, front 8.3.18.jpg|thumb|The [[BYD F3]], the first vehicle designed by BYD was produced in 2005–2019]]
During its early years, BYD Auto achieved growth by [[reverse engineering]] competitors products and supplier parts, and maintaining strong control over costs. The first mass-produced passenger car from BYD, the BYD F3 is considered "a copycat" of the [[Toyota Corolla]].<ref>{{Cite book |last1=Kasperk |first1=Garnet |url=https://books.google.com/books?id=bkRuAwAAQBAJ&dq=tsinchuan++byd+company&pg=PA140 |title=Internationalization of Chinese Automobile Companies |last2=CIAM |first2=RWTH Aachen University Center for International Automobile Management |date=July 2012 |publisher=Lulu.com |isbn=978-1-4478-3954-5 |language=en}}</ref> The [[BYD F0]] small car was described as "a clear copy" of the [[Toyota Aygo]],<ref>{{cite web |date=2008-03-05 |title=BYD's bid to break the Chinese mould |url=https://www.easier.com/2715-byd-s-bid-to-break-the-chinese-mould.html |access-date=21 April 2019 |website=Easier.com}}</ref> and the [[BYD S8]] has a similar appearance to the [[Mercedes-Benz SL-Class (R230)|Mercedes-Benz SL-Class]], with features an "almost identical" [[Mercedes-Benz CLK-Class (C209)|Mercedes-Benz CLK]] front-end and [[Renault Mégane#Mégane III (2008–2016)|Renault Megane CC]] rear.<ref>{{cite web |date=15 April 2009 |title=BYD S8 Convertible: A Chinese Chopstick Dumpling Deathtrap |url=https://jalopnik.com/byd-s8-convertible-a-chinese-chopstick-dumpling-deatht-5213003 |access-date=21 April 2019 |website=Jalopnik}}</ref><ref>{{cite web |last=Raja |first=Siddarth |date=26 June 2018 |title=Another Chinese copy, the BYD F8 |url=https://www.motorauthority.com/news/1028623_another-chinese-copy-the-byd-f8 |url-status=dead |archive-url=https://web.archive.org/web/20180626135950/https://www.motorauthority.com/news/1028623_another-chinese-copy-the-byd-f8 |archive-date=26 June 2018 |website=MotorAuthority}}</ref> Wang Chuanfu responded by claiming the company only uses "non-[[patent]]ed technologies".<ref>{{Cite web |date=2023-08-11 |title=比亚迪「格局」刷屏，500 万辆新能源汽车助它当国产汽车大哥 |trans-title=BYD's "pattern" refreshes the screen, 5 million new energy vehicles help it become the big brother of domestic automobiles |url=https://www.ifanr.com/1558221 |access-date=2023-12-22 |website=爱范儿 |language=zh-CN}}</ref> In 2009, the US government had been advised by its [[Consulate General of the United States, Guangzhou|consulate general in Guangzhou, China]], that BYD uses an approach of "copying and then modifying car designs." However, according to the consul, BYD had modified the vehicles designs significantly enough to convince Chinese courts that the company has not infringed on patents.<ref name=":7">{{cite web |date=9 March 2011 |title=Special Report: Warren Buffett's China car deal could backfire |url=https://www.reuters.com/article/us-wiki-buffett-byd/special-report-warren-buffetts-china-car-deal-could-backfire-idUSTRE72848X20110309 |access-date=21 April 2019 |website=Reuters |language=en}}</ref>[[File:BYD 01.JPG|thumb|The BYD stand at the 2009 Central China High-Tech Fair in [[Shenzhen]]]]

In 2005, BYD Auto contributed 10% to BYD Company's revenue. As its automotive business grew, by 2006, BYD Auto's contribution increased to 25%. In the first half of 2009, BYD Auto accounted for 55% of its parent company total revenue, marking the first time it contributed more than half of the company's earnings.<ref name="Sina Finance-2023" /> By 2008, BYD Auto owned two vehicle assembly manufacturing plants in [[Xi'an]] and in [[Shenzhen]] with a production capacity of 300,000 units per year, an R&D and testing center in [[Shanghai]], and a [[Molding (process)|moulding]] plant in [[Beijing]].<ref name="1miModel3" />

After years of sales growth, widespread withdrawal of BYD [[Car dealership|dealerships]] were reported in large Chinese cities during 2010 due to excessively rapid expansion, limited model range, and [[internal competition]] that presented difficulties for dealers. It was exacerbated by BYD's focus on production capacity over quality. BYD responded by adjusting its annual production target from 800,000 to 600,000 vehicles, but fell short, reaching only 517,000 vehicles that year. In the subsequent three years, BYD shifted its attention to resolving concerns related to quality, dealership channels, and brand promotion.<ref name="Sina Finance-2023" />