Optimizing the distribution channels for new electric vehicles in China

In the context of global energy transformation and the promotion of “dual carbon” goals, China’s new energy vehicle industry has entered a phase of rapid development. The purpose of our research is to develop a strategy for optimizing the distribution channels of a leading Chinese company YD (a subsidiary of BYD Company Limited). To achieve this, we analyzed the current state of YD ’s distribution channels, identified existing challenges, and proposed strategies for optimizing these channels. It is noted that YD has already established an extensive offline network, leading the industry in terms of the number of channels, but faces challenges such as an unbalanced channel structure, low efficiency of individual stores, insufficient online conversion, the need to improve the customer experience, insufficient coverage of lower markets, and weak coordination between the public and private sectors. The strategy of optimizing YD ’s channels is proposed in the areas of optimizing the channel structure; for example, to solve the problem of uneven regional development, it is proposed to establish a mechanism of dynamic adjustment of channels based on provinces according to the “one strategy per province” principle. Online and offline integration: building a digital user management system, managing the customer’s life cycle; improving the service experience: implementing a combination of standardization and personalization; organizational and personnel support: activating the internal driving forces in the channels. The importance of organizational guarantees and staff motivation is emphasized, and it is proposed that staff implement a “comparing, learning, catching up, helping, and surpassing” competition mechanism to stimulate the activity of frontline teams. Comprehensive optimization of the channel system can help YD improve its market competitiveness by providing practical guidance for innovation in distribution channels and the strategic transformation of China’s new electric vehicle industry.

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