Comparison of Marketing Strategies and Technological Innovation in New Energy Vehicles: A Case Study of BYD and Tesla

Abstract

In this study, the marketing mechanism and technology innovation of Tesla have been compared with another successful EV company BYD in China. The study seeks to investigate on how the two corporate firms use green marketing and technological innovations in order to affect customer preferences as well as increase their market share. Tesla’s products are high-end with cutting-edge technology, and focus on energy efficiency—not a detracting feature for environmentally conscious consumers willing to pay a premium. Instead, BYD is focusing on affordable, reliable and more diverse offerings aimed at the mass market — namely in its homeland of China. The research shows that although Tesla has managed to lead in technology and offers a premium product range, vertical integration in manufacturing and competitive pricing by BYD helped it quickly capture more of the market – especially emerging ones. Furthermore, both firms are facing headwinds from high pricing and dependence on better charging network. It is further concluded that even though Tesla and BYD have been successful in promoting green marketing and innovation strategies, doing away with infrastructure bottlenecks, reducing price complexities are indispensable for the higher adoption of EVs through developing markets.