In recent years, a concerning trend has emerged in China's automotive industry. Many automotive founders have shifted their focus away from technological and product innovation, instead dedicating significant time to short videos, live streams, and social media under the guise of building a "personal brand." This approach prioritizes superficial marketing over substantive business operations, offering little real value and contributing to widespread confusion in public discourse.
Among these entrepreneurs, BYD Company Limited's founder, Wang Chuanfu, stands out for his consistent refusal to engage in such social media performances. Wang maintains no personal accounts on platforms like Weibo, Douyin, or WeChat Video and has never participated in corporate-staged marketing livestreams. He rarely attends launch events for the company's core products, making appearances only at major strategic technology announcements.
Despite his avoidance of showy marketing tactics, Wang Chuanfu commands more attention and influence than many of his peers. For instance, during the recent Beijing International Automotive Exhibition, he became the most talked-about executive, with numerous institutional and independent media outlets vying for coverage.
This high level of interest stems not from self-promotion, but from the impressive lineup of products BYD unveiled at the event. The company's main brand showcased the full-size flagship SUV Tang L under the Dynasty series, while the Ocean network introduced its first large sedan, the Seal 08, its first mid-to-large SUV, the Sea Lion 08, and a new concept car, the Ocean V. The premium brand Denzo launched the world's first intelligent electric convertible supercar, the Denzo Z, and the specialized brand Fang Cheng Bao presented the new coupe series Fang Cheng S and the production-ready concept sports car FORMULA X.
In 2025, several of BYD's highly anticipated flagship models, including the Tang L, Han L, Denzo Z9, N9, and N8L, underperformed in sales due to shortcomings in exterior design, resulting in the company's weakest sales growth in five years. The new models debuted at the auto show, however, feature significantly improved aesthetics, effectively addressing this previous weakness.
With enhanced design complementing its traditional technological strengths, BYD possesses a powerful competitive edge. The recent official launch of its second-generation Blade Battery and flash-charging technology comprehensively addresses two major consumer concerns for electric vehicles: short range and slow charging. This advancement elevates the development of China's new energy vehicle sector to a new level. All new models introduced by BYD at the Beijing auto show will be equipped with these technologies.
The breakthrough of the second-generation Blade Battery and flash-charging technology has created significant waves in the Chinese auto industry, generating substantial positive publicity for BYD as media outlets extensively cover these innovations. This demonstrates the high return on investment in BYD's R&D efforts; beyond enhancing product capabilities and performance, advanced technology also simplifies marketing.
In addition to design and technology, BYD benefits from massive scale and a vertically integrated supply chain, granting it greater control over costs and pricing compared to competitors. Offering technologically superior products at more attractive prices creates a compelling proposition for consumers.
BYD's technological and product achievements have attracted not only media and public attention but also spontaneous endorsements from prominent figures. Renowned value investor Li Lu recently praised Wang Chuanfu in an interview, highlighting his "originality," "determination," and "fiduciary spirit," and describing him as a great entrepreneur in any era.
Yu Hao, founder of Dreame and a young, outspoken entrepreneur known for his bold online presence, acknowledged in a media interview that Wang Chuanfu's greatness is comparable to, if not greater than, that of Elon Musk. He noted that succeeding in China requires a leader to embody both the manufacturing prowess of Terry Gou and the innovative vision of Musk.
The most famous appraisal comes from legendary investor Charlie Munger, who likened Wang Chuanfu to a "combination of Thomas Edison and Jack Welch," capable of solving complex technical problems like Edison and managing enterprise challenges like the former GE CEO. Munger strongly recommended that Warren Buffett's Berkshire Hathaway invest in BYD.
A minor but notable incident during the auto show involved photos and videos of Wang Chuanfu, his wife Li Ke, and other BYD executives taking the subway, which went viral on social media. This should not be surprising; even the wealthiest entrepreneurs are ordinary people. Given Beijing's notorious traffic congestion during major events, the subway represents the most logical and reliable transportation choice. This decision reflects a key trait of both Wang and BYD: pragmatism and rationality, making choices based on practical necessity rather than status or convention.
In contrast, leaders of other automakers often opt for less efficient, status-conscious transportation, enduring traffic jams to maintain a perceived superior image. This difference in mindset influences whether a company consistently makes sound decisions and executes effectively. The public resonance with BYD executives taking the subway stems from the appeal of their务实 (pragmatic) and rational approach.
This organic marketing, driven by technological leadership and corporate culture—endorsed by figures like Charlie Munger, Li Lu, Yu Hao, and the public—is far more effective than the self-promotional videos and livestreams favored by some executives. The global marketing impact of Buffett's investment in BYD, for example, rivals that of multi-billion-dollar branding campaigns.
Amid BYD's success at the Beijing auto show, the company released its Q1 2026 financial report on April 28, which disappointed some investors. The report showed revenue of approximately 150.225 billion RMB, an 11.82% decrease from 170.360 billion RMB in the same period last year. Net profit attributable to shareholders plummeted 55.38% to 4.085 billion RMB from 9.155 billion RMB.
This significant decline in revenue and profit caused concern in capital markets. However, an overly pessimistic view of these results is unwarranted. The figures reflect past missteps and challenges but do not represent the current state of BYD's business.
Investors familiar with BYD's history will recall its spectacular growth between 2020 and 2024, a period ignited by the maturation of its Blade Battery technology and the launch of the Han EV, marking a qualitative leap in its technological and product offerings.
By 2025, however, competitors had narrowed the technology gap, and several strategic new models underperformed due to design issues. BYD quickly recognized these problems. From the second half of 2025, it slowed its pace, reducing sales targets and focusing resources on developing the next generation of technology and products to prepare for a resurgence in 2026.
The first quarter is typically a slow season for auto sales in China, a period many companies use for strategic adjustments and building momentum for the busier quarters ahead. BYD followed this pattern, spending much of Q1 2026 clearing inventory of older models, which limited its product offerings.
It was only in the latter half of March that BYD began its product offensive, launching a series of significant new models. Beyond the products unveiled at the Beijing auto show, BYD recently launched the popular all-electric SUV Song Ultra and introduced upgraded versions of previous best-sellers like the Sea Lion 05, Seal 06, Yuan Plus, and Yuan UP. The competitive midsize electric sedan Qin MAX is also slated for release soon. With a mix of volume-sellers, brand-enhancing premium models, and forward-looking concept vehicles, BYD's 2026 product portfolio is its strongest in years.
Apart from this strategic business rhythm adjustment, a major contributor to the profit decline was foreign exchange losses, not operational issues. The financial report indicates that financial expenses related to exchange rates shifted from a gain of 1.908 billion RMB in the same period last year to a loss of 2.100 billion RMB this quarter, directly reducing reported profit by over 4 billion RMB. Such forex losses do not represent actual cash outflow and are not a recurring operational expense; in some years, exchange rate movements can conversely lead to significant gains.
Therefore, there is little reason for excessive pessimism regarding BYD's long-term prospects. In the short term, the launch of its new product lineup is expected to drive a strong performance in the second quarter. Long-term, BYD's systemic competitiveness—comprising technological leadership, scale, integrated supply chain, brand strength, management, corporate culture, and global expansion—builds a wide and durable moat. At this juncture, maintaining investment conviction in BYD is a key test of a true value investor's mettle.