Analysis of the Impact of BYD's R&D Efficiency and Geely and Xiaomi's Product Strategies on the New Energy Vehicle Market

Comprehensive Analysis

Impact of BYD’s R&D Investment Conversion Efficiency
:
In the first three quarters of 2025, BYD’s R&D investment reached 43.75 billion yuan, a year-on-year increase of 31.3%, far exceeding Geely’s 11.7 billion yuan and Xiaomi’s auto business-related investment [0]. However, Chairman Wang Chuanfu admitted that the “wow factor” of its technological leadership has decreased, and user pain points (such as slow charging at low temperatures) have not been fully resolved, leading to pressure on domestic sales decline [0]. R&D investment that does not hit consumer demand may weaken its long-term technological advantages and market competitiveness, affecting investors’ confidence in its valuation.
Differentiated Product Strategies of Geely and Xiaomi
:
Geely competes for the market through precise positioning in segmented markets and cost-effective strategies. Taking the Galaxy M9 as an example, its sales reached 10,639 units in November 2025, exceeding 10,000 for two consecutive months [0], showing competitiveness in the high-end vehicle market; although the sales of Star Wish and Seagull are close (44,007 units vs 50,106 units), they still reflect its cost-effective advantage in the small car market [0].
As a cross-border player, Xiaomi has quickly gained a foothold relying on brand influence and precise product strategies. Its YU7 model sold 33,729 units in November 2025 [0], and at the same time, its auto and AI business achieved revenue of 68.9 billion yuan in the first three quarters with a loss of only 100 million yuan [0], showing efficient input-output ratio and market adaptation capabilities.

Key Insights

R&D Efficiency Matters More Than Investment Scale
: BYD’s case shows that R&D investment needs to be closely aligned with consumer demand; otherwise, it is difficult to convert into market competitiveness. The efficient strategies of Geely and Xiaomi reveal the “market-oriented” development trend of the new energy vehicle market.
Competition in Segmented Markets Intensifies
: Geely’s layout in high-end and low-end markets and Xiaomi’s cross-border entry are breaking the original market pattern, promoting the new energy vehicle market to shift from a “technology-driven” model to a dual-wheel model of “market-driven + technology-driven”.

Risks and Opportunities

Risks
: If BYD fails to improve its R&D conversion efficiency, it may lose more market share; Geely needs to continue to maintain its product cost-effectiveness advantage to cope with competition; Xiaomi needs to solve the long-term challenges of capacity ramping and technology accumulation.
Opportunities
: BYD can achieve technological breakthroughs by adjusting its R&D direction to focus on user pain points; Geely can expand overseas markets relying on existing advantages; Xiaomi can leverage cross-border integration capabilities to build an intelligent car ecosystem.

Key Information Summary

BYD’s R&D investment is high but conversion efficiency needs improvement; it needs to strengthen user demand orientation [0].
Geely performs strongly in segmented markets through precise positioning and cost-effectiveness [0].
Xiaomi has obvious cross-border advantages, with precise product strategies and efficient input-output [0].
The competition among the three is reshaping the new energy vehicle market pattern, promoting the industry to develop in a direction more in line with market demand.

Analysis of the Impact of BYD's R&D Efficiency and Geely and Xiaomi's Product Strategies on the New Energy Vehicle Market

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