Cost Management of Chinese Alternative Energy Vehicle Enterprises Based on Value Chain Analysis: Taking BYD Company as an Example

The research aims to explore the effectiveness of BYD’s digital innovation initiatives in cost management along the company’s internal value chain. With BYD as a case study, this research analyzes the company’s annual report data over the past seven years. A comparative analysis is conducted on expenses related to R&D investment, procurement and production, and operation and sales. Data and indicators are employed to show the changes in cost and efficiency brought by the digital transformation. BYD’s new measures for cost management in the context of digital transformation led to increased efficiency in cost utilization. Supply chain resilience from these new cost management measures is evident in its response to the impact of the COVID-19 pandemic. Noteworthy aspects include cost containment and maintenance of R&D, highlighting the cost optimization capabilities of digital transformation. There is limited research on the supply chain cost of China’s domestic automobile manufacturing, especially in the smart era where research on new energy vehicles has just started. An analysis of BYD can expand the research scope of supply chain management in the automobile industry. This research analyzes BYD’s internal and external value chain cost management strategies and results, summarizes effective innovations, and proposes feasible measures for the digital transformation of value chain management. It is expected that this analysis will enhance the effectiveness of cost management and provide examples of supply chain optimization in the manufacturing industry. © 2025 Elsevier B.V., All rights reserved.