Reduced Import Duties

Import duties are taxes levied on goods imported into a country. In Malaysia, the
government may reduce or eliminate import duties on EVs to make them more
competitively priced compared to traditional internal combustion engine vehicles. BYD,
as an international automaker, would need to work with Malaysian customs authorities
to ensure that its EVs qualify for these reduced import duties.

Excise Tax Reduction

Excise taxes are typically imposed on the production or sale of specific goods, including
automobiles. Governments often offer reductions or exemptions on excise taxes for EVs
to stimulate their adoption. BYD would need to comply with the requirements set by the
Malaysian government to benefit from these reductions.

Road Tax Reduction

Road tax is an annual tax that vehicle owners pay to use public roads. In some cases,
governments offer lower road tax rates for EVs to encourage their ownership. BYD
would need to ensure that its EV models are eligible for these road tax reductions, and
this would likely involve meeting specific emissions or energy efficiency criteria.

Eligibility Criteria
To benefit from these tax incentives, BYD would need to ensure that its electric vehicles
meet the eligibility criteria established by the Malaysian government. These criteria may
include factors like battery capacity, energy efficiency ratings, and emission standards.
BYD's electric vehicles would need to align with these requirements to qualify for the
incentives.

Certification and Compliance

BYD would likely need to undergo certification and compliance processes to prove that
its electric vehicles meet Malaysian government standards. This could involve testing
and verification of the vehicles' emissions, safety features, and energy efficiency.
Ensuring compliance is essential to qualify for tax incentives.

Collaboration with Government Agencies

Collaboration with relevant government agencies is vital. BYD would work closely with
Malaysian government bodies responsible for transportation and environmental policies
to stay informed about the latest incentives and requirements. Regular communication
with these agencies can help BYD navigate the regulatory landscape effectively.
Consumer Education
In addition to meeting eligibility criteria, BYD may also engage in consumer education
and awareness campaigns to inform potential buyers about the benefits of electric
vehicles and the associated tax incentives. Educating consumers about the long-term cost
savings, environmental benefits, and government incentives can drive adoption.

Safety Standards
Malaysian authorities have specific safety standards and regulations that electric vehicles
must adhere to. These standards cover various aspects, including crash safety, emissions,
and electrical safety. BYD would need to ensure that its electric vehicles meet or exceed
these safety standards through design modifications and testing.

Emission Standards
Malaysia has emissions standards that electric vehicles are expected to comply with,
particularly regarding noise emissions. Although electric vehicles are generally quieter
than traditional internal combustion engine vehicles, there may still be regulations in
place to limit noise pollution.

Charging Infrastructure:
To facilitate the adoption of electric vehicles, Malaysia is also investing in charging
infrastructure. BYD might need to ensure that its electric vehicles are compatible with
the charging standards prevalent in Malaysia, such as CCS (Combined Charging System)
or CHAdeMO, to ensure ease of charging for consumers.

3.6 Mode of Entry

Mode of Entry:
BYD Car has used joint ventures as a mode of entry to penetrate the international market
(Sharma & Jha, 2016). By forming partnerships with established automotive manufacturers,
BYD Car gains access to their expertise, technology, and distribution networks. This mode of
entry allows BYD Car to overcome barriers to entry and establish a presence in new markets.
5. Mode of Entry:
BYD Car has utilized joint ventures as a mode of entry to penetrate the international market .
By forming partnerships with established automotive manufacturers, BYD Car gains access
to their expertise, technology, and distribution networks. This mode of entry allows BYD Car
to overcome barriers to entry and establish a presence in new markets. BYD Car's entry into
the Malaysian market was facilitated by a joint venture with a local automotive distributor.
This strategic partnership allowed BYD Car to leverage the distributor's knowledge of the
Malaysian automotive industry, regulatory requirements, and established distribution
channels. However, BYD Car faced resistance and challenges during its market entry into
Malaysia. Some of the key challenges included:
Consumer Perception: Malaysian consumers were initially skeptical about electric vehicles
(EVs) due to concerns about battery life, charging infrastructure, and range anxiety. BYD Car
had to work on changing these perceptions and educating the market about the benefits of
electric vehicles.
Charging Infrastructure: The availability of charging infrastructure for electric vehicles was
limited in Malaysia at the time of BYD Car's entry. This posed a significant hurdle for
potential EV buyers. To address this issue, BYD Car had to collaborate with local partners
and invest in charging infrastructure development.
Competition: The Malaysian automotive market was already competitive, with established
players offering conventional internal combustion engine (ICE) vehicles. BYD Car had to
differentiate itself and demonstrate the advantages of its electric vehicles compared to
traditional options.
Regulatory Compliance: Adhering to local regulations and obtaining necessary approvals for
electric vehicles and their components was a complex process. BYD Car had to navigate
these regulatory challenges to ensure its vehicles met Malaysian standards.

To overcome these obstacles, BYD Car engaged in extensive marketing and educational
campaigns, highlighting the benefits of EVs, investing in charging infrastructure, and
working closely with local partners and authorities. Over time, these efforts helped BYD Car
establish a foothold in the Malaysian market and gain acceptance among consumers.
Product Launching

Before launching a standardized product in a new market, thorough market research is

crucial. While the core product remains the same, companies need to understand local
preferences, regulations, and potential challenges. For BYD, launching in Malaysia, this
might involve studying Malaysian consumer preferences for electric vehicles,
understanding local regulations related to vehicle safety and emissions, and identifying
local competitors.
Once of the example that BYD implemented the localized marketing strategy by
conducting the event at one of the renowned convention center and hosted by Malaysian
popular singer and comedian. Here's a vivid example of how this played out in the
Malaysian context:

Scenario: BYD Car's Grand Launch in Malaysia

Location: Kuala Lumpur Convention Centre (KLCC)
Date: September 28, 2021

Global Appeal
The event started with the grand unveiling of BYD's latest electric vehicle models,
including the e6 and Tang. These vehicles boasted the same cutting-edge technology and
features found in BYD's offerings worldwide.
Global Branding
International brand ambassadors and executives from BYD's global team were present to
reinforce the company's international pedigree.
Local Artistry
To establish a strong connection with the Malaysian audience, BYD Car collaborated
with popular Malaysian artists, including the renowned singer Datuk Siti Nurhaliza and
beloved comedian Harith Iskander. Datuk Siti Nurhaliza performed a special song
highlighting the importance of sustainability and environmental consciousness,
resonating deeply with the local culture's love for music.
Environmental Commitment
BYD Car emphasized its commitment to a greener Malaysia by planting a tree for every
electric vehicle sold during the launch event. Local environmental activists and
influencers joined the initiative, underlining the brand's alignment with Malaysia's
conservation values.
Partnerships: BYD may establish partnerships with local companies or government
entities to gain market access and build trust. For instance, they might collaborate with
local universities or research institutions on electric vehicle research projects,
showcasing their commitment to local development and innovation.

In summary, BYD Motors employs a combination of standardized and localized

marketing strategies when entering international markets, including Malaysia. They
maintain a consistent global brand image and product lineup but adapt their marketing
approaches to align with local cultural, regulatory, and market conditions. This flexibility
is crucial for their success in diverse international markets.

Community Engagement: BYD Car initiated a "BYD Scholars Program" in partnership

with local universities, offering scholarships to students pursuing studies in clean energy
and automotive engineering. This commitment to education was a localization strategy
aimed at contributing to Malaysia's academic growth.
Impact:
The grand launch event garnered widespread attention from the Malaysian media and
public. The combination of BYD's global reputation and its thoughtful localization
efforts created a buzz across the nation. Local media extensively covered the event, and
social media was abuzz with posts and shares of the event's highlights, particularly the
performances by Datuk Siti Nurhaliza and Harith Iskander.

In the months following the launch, BYD Car's sales in Malaysia saw a significant
uptick. The brand's association with local artists and its commitment to environmental
initiatives resonated with Malaysian consumers, making BYD electric vehicles a symbol
of sustainable and community-focused mobility.

Benefits of Product Standardization for International Markets:

Cost Efficiency: Standardizing products allows companies to achieve cost efficiencies

through bulk production and streamlined processes, which is especially beneficial when
dealing with multiple international markets.

Consistency: A standardized product offers a consistent brand image and customer experience
globally, which can enhance brand trust and recognition.

Faster Market Entry: Launching standardized products is typically faster and requires fewer
resources compared to customized products, enabling quicker market entry.

Global Branding: A consistent product lineup reinforces a global brand image, making it
easier for customers to identify the brand's offerings across different markets.
Scalability: Standardized products are easier to scale globally, allowing companies like BYD
to expand their reach efficiently.

Distribution and Sales Channels:

BYD has localized its distribution and sales channels to suit the specific market conditions in
each country. In Malaysia, they may collaborate with local dealerships and establish service
centers to provide convenient support for Malaysian customers. Adapting to local distribution
networks ensures efficient product availability and after-sales service.

In conclusion, product standardization is a strategic approach that offers several benefits,

including cost efficiency, consistency, and faster market entry, making it a valuable approach
for companies like BYD when approaching international markets like Malaysia. However,
careful market research and localized adaptations are still essential to ensure success and
customer satisfaction in diverse international markets.
BYD Car's international marketing practices in relation to the marketing mix elements of
product, pricing, promotion, and distribution have contributed to its success in the global
automotive industry. The company has implemented strategies that are both standardized and
localized to cater to the ASEAN people. Additionally, BYD Car has utilized joint ventures as
a mode of entry to penetrate international markets. By analyzing the practices of other car
manufacturers, such as Tesla and Toyota, we can gain further insights into the diverse
strategies employed in the automotive industry.

In summary, BYD Car's product strategy revolves around low-cost innovation, allowing them
to offer electric vehicles with similar functionalities to Western products at a more affordable
price. This sets them apart from Tesla, which focuses on premium, high-performance electric
vehicles with advanced technology. Both companies have carved out their own niche in the
electric vehicle market, catering to different customer segments with distinct product
offerings.
Conclusion and policy implications

Creating a substitute for internal combustion vehicles is a major technological challenge

even more so for firms and governments in developing economies. The Chinese auto
industry has been seeking to improve technologies used in electric cars just as the
Japanese consumer electronics industry improved the technology in the 1970s and
1980s. Efforts are being made to develop the main components of the electric car: the
battery, its management and powertrain systems. Moreover, Chinese firms and
governments are also investing in this venture and contributing to the expansion of the
incipient infrastructure, i.e., charging stations, as these are essential if EVs are to
become more widely adopted in transportation in China.

Bakker, Maat, and van Wee (2014) study the strategies of relevant stakeholders
regarding the development and commercialization of EVs for the case of Netherlands.
They identified some conflicts of interest among different stakeholders that seem to be
present in the case of Chinese stakeholders. To keep the momentum for electric vehicles
expansion, conflicts must be reduced at the same time that cooperation among different
partners must be deepened. BYD is a case in point of a company that is investing in
supplying solutions and not just products. While producing EVs, the company is also
producing the most expensive part of these vehicles – the batteries and infrastructure
equipment. At the same time, the company is also investing in developing solar
technology in order to ensure that its technologies are ecologically sustainable.

Even with central and local government subsidies, BYD's EV production and marketing
is still in an embryonic stage. However, given the exponential growth of the sector in
China and the rest of the world, BYD is progressively seeking to deepen the
technological developments that the industry demands, particularly in battery
production. Expanding its solar energy sector is also helping to search for solutions
suitable to satisfy consumer demands and environmental problems. The company is
also rapidly internationalizing its EV operations, as stated by one of the executives, to
explore the pioneering advantages in this emerging automotive segment both in China
and abroad.

Research on the internationalization strategies in the emergent EVs industry being

pursued by fast movers like BYD deserves to be further investigated. Future research
should be directed at more in-depth case studies analyzing the company's performance
in local and foreign markets. Specifically, further research is needed to understand if the
vertical integrated structure of production of EVs that has driven the company's
expansion in the Chinese market is able to continue as government subsidies are
reduced. In foreign markets, case studies of BYD's investments could help to identify
which factors (the gains from local production, the reduction of costs for batteries, the
expansion of infrastructure, etc.) are most critical for the consolidation of the EVs
segment. Beyond BYD, further research is also needed on what other Chinese
companies as well as global automakers are doing to leverage the development of the
EVs industry. These questions are a promising research agenda that should be pursued
in the near future.

In general, as an excellent new energy vehicle brand in China, BYD has good independent
innovation capabilities and production capabilities. At the same time, because BYD’s
product positioning is in the mid-to-low market and its market distribution is concentrated
in China, its investment risk is lower than that of other international brands, such as Tesla
andMercedes-Benz. But this also means that BYD’s earnings will be lower. Not only that,
BYD’s advantage lies in China’s relatively cheap labor, a market with great potential,
and strong support from the national government. And new energy is an important
development direction in the future, and BYD’s future development prospects are also
huge. But there are also many threats, such as threats from different brands at home
and abroad. BYD has been hit by lower demand for cars under the influence of the
COVID-19 outbreak. Moreover, BYD’s high dependence on foreign automotive chips
is also a major problem. Therefore, the suggestion for BYD is to strengthen cooperation
with other brands on the premise of adhering to independent research and development
and innovation. Reduce manufacturing cost. Strengthen global sales layout and expand
consumer groups, thereby expanding market competitiveness.
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