Shanghai (ZXZC)- On March 16, BYD Company Limited ("BYD") and JD.com officially signed a strategic partnership agreement at JD.com's headquarters in Beijing, according to a post on the WeChat account of BYD's commercial vehicle (CV) business unit. This partnership marks a significant step for both corporations, aiming to leverage their respective strengths in advancing China's automotive industry and embracing the opportunities presented by the era of electrification and digital transformation.

BYD CV business unit; photo credit: BYD

Together, BYD and JD.com will explore comprehensive cooperation in passenger vehicles (PVs), CV applications, digitalized supply chain services, materials procurement, and integrated services. For instance, BYD's CV unit will utilize the group's leading PHEV (plug-in hybrid electric vehicle) technology, high-safety Blade Batteries, and efficient dedicated engines to renew the logistics light-duty truck products. This partnership aims to meet the demands of green logistics across various scenarios with significant Total Cost of Ownership (TCO) advantages. Integrating fleet cloud service management systems with JD Logistics’ digital supply chain and automated warehousing systems, the collaboration is set to achieve cost reduction and efficiency improvements, serving as a model for development in the logistics sector.

BYD, an international enterprise spanning electronics, automobiles, new energy, and rail transit industries, saw its annual passenger vehicle (PV) sales exceed 3 million units in 2023, securing the top spot in China’s automotive industry. JD.com, positioned as a technology and service company based on supply chain, operates across retail, technology, logistics, health, industrial development, private brands, insurance, and international business. The company is committed to fostering high-quality development of the physical economy through solid and innovative experiences.

Wang Chuanfu, Chairman and President of BYD, expressed that the electrification of China’s automotive industry is rapidly advancing. This strategic signing with JD.com is seen as an opportunity for mutual benefit and deeper cooperation. By leveraging JD.com’s advanced supply chain technology and services, both companies aim to drive the transformation and upgrade of China’s automotive industry chain, accelerate the international expansion of new energy vehicles, and enhance the international competitiveness of Chinese automobiles.

JD.com CEO Xu Ran stated that JD.com, drawing upon its strategic orientation and digital supply chain strengths, is focusing on the automotive industry as a pivotal area of development. The company is in the early stages of establishing two key service capabilities: a digitalized supply chain operational service tailored to the automotive industry, encompassing production, supply, sales, and service, and a comprehensive lifecycle service for vehicle owners, covering purchasing, accessorizing, maintenance, usage, and exchange. The aim is for both parties to accelerate business expansion and deepen collaboration, jointly promoting high-quality development within the automotive industry's supply and value chains.