Factors influencing the internationalization of emerging market firms: the BYD case in the automotive industry

This thesis investigates how BYD, a firm from the emerging markets, becomes an international enterprise in the evolving global electric vehicle (EV) industry.The focus of this thesis is to explore how the emerging markets multinational enterprise (EMNE) BYD becomes international in the changing global electric vehicle (EV) industry. The study aims to explore the route of BYD's internationalization, the factors driving BYD's internationalization, the ways by which BYD enters into the international market, the challenges BYD faces and ways how it overcomes these challenges. The secondary research data published mainly during 2020 to 2026 was analysed with a qualitative single case study design. Thematic analysis and triangulation of academic literature, industry reports, company documents, institutional publications and policy sources was conducted. The results show that BYD's internationalisation strategy has shifted from exporting to a wider penetration into international production and operations. It involves its export, overseas sales and distribution, partnerships, joint ventures, foreign direct investment (FDI), local production, its development and research and development activities in its supply-chain. Motivations were identified as market expansion, competitive positioning, international brand development and capability development. Regulatory differences, trade barriers, liability of foreignness, brand recognition, and consumer trust and competition from established manufacturers, however, are all limitations for international expansion. The results show that BYD copes with these challenges by technological differentiation, FDI, localisation, partnership and selective adaptation of markets. In contrast to full localisation, BYD retains basic technologies and production capacity in markets and develops features of the production process, supply chains, distribution process and market activities in line with local needs. The study findings indicate that BYD's internationalisation is a shift from product globalisation to capacity globalisation with both global standards and local responsiveness. Technological capacities built within an emerging economy can facilitate international expansion; and FDI and localisation can provide additional market embeddedness to overcome barriers. Limitations of the study include the use of secondary data and a single company case study as well as the possibility for interviews or comparative studies of companies in future.