In 2023, Japanese engineers disassembled the BYD Seal electric car down to the last bolt to discover the secret behind the success of one of the fastest-growing automakers. The findings are compiled in a 350-page manual sold to engineers from Toyota, Honda and Nissan. The study shows how the Chinese manufacturer achieves a lower price through a design with fewer parts and a closer connection between development and production. One example cited is the BYD Atto 3, in which eight major components are combined into a single power unit, and parts are used in several different models, which reduces the number of individual elements, facilitates assembly and limits dependence on external suppliers.
The company manufactures its own batteries, electric motors, electronics and other key components using lithium-iron-phosphate batteries, which are cheaper and more stable, although they have a lower energy density than some alternatives.
The US engineering company Caresoft Global is also dismantling a BYD Seagull that was purchased from China and shipped to the United States. Terry Wojciechowski, president of Caresoft Global and a former chief engineer of General Motors pickup trucks, describes the vehicle as an “exercise in efficiency”. According to him, “things will have to change radically” if Western manufacturers want to compete with Chinese electric vehicles. Wojciechowski also points out that BYD manufactures a significant part of the equipment itself, including electric motors, dashboards, bodies and headlights. This gives the company control over more stages of production and uses its scale to reduce costs.
While the little Seagull costs around £7,500 in China, the car is sold in the UK as the BYD Dolphin Surf with a starting price of £18,675. The difference is explained by transport, value added tax, dealer margins, different safety requirements and pricing policies in individual markets. Despite these differences, BYD sold 51,422 cars in the UK in 2025, or over 6,000 more than Tesla, which sold 45,513.
Such teardowns do not automatically prove how the cars will perform after years of operation, but they do show why Chinese manufacturers can offer more equipment and a lower production cost, and this is already changing the competition in the European market.