Analyzing Supply Chain Complexity and Agility in Building EVs in China

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Abstract:

Among top 20 EV car models sold in 2018 by global players, including Tesla, Nissan, Toyota, Mitsubushi, Chinese cars models took 11 seats, or 47% market share among those top 20 models. Leading Chinese carmakers in producing EVs cars are BAIC (Beijing Automotive Industrial Corporation), BYD, JAC (Jianghuai Automotive Corporation), Chery and SAIC (Shanghai Automotive Industrial Corporation). At the same time, new players having no automanufacturing background, are rushed into the Chinese market, mainly represented by Weilai, Weima, Xiaopeng Motors, when start selling its first 10,000 units in 2019.

In this paper, through several case studies, we examines the complexity of supply chain and the agility of supply chain of those EVs. For Chinese large OEMs, thanks to the existing supplier network and its reputation, the expansion to the EV cars have experienced progressive evolution of supplier system. New forms of supply chain management can be founded in new players of EV. Facing the pressure of quick deliver to the market, higher level of flexibility and supply chain collaborations can be founded, so as to assure the integration of internal technology and external technology. While the flexibility, uncertainty, and quality assurance is the tradeoff faced by the new players.

This paper open the black box of Chinese EV industry, from the perspective of supply chain management, so as to help the understanding on the quick growth of Chinese EV industry, industry dynamics of supply chain management in the Chinese automobile industry.