Innovation Model Analysis of New Energy Vehicles

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Critical Review
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29 October 2017

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Innovation model analysis of new energy vehicles: taking Toyota, Tesla, and BYD as an
example
Introduction
This article focuses on the vehicle industry with regard to new energy and the innovative
models adopted by Toyota, BYD and Tesla Companies. The specific areas of innovation that
are analyzed and compared to this paper are the environmental, marketing strategy,
innovative track and corporate model (Liu and Meng 2017).
Innovation model analysis of new energy vehicles:
Toyota
Toyota is perhaps the most spread vehicle company across the globe. It is established in 27
countries worldwide with 50 manufacturing facilities and worldwide car sales in over 160
countries. The quick integration of the new energy Toyota vehicle is attributed to its global
presence, cooperation with higher institutions of learning, and creation of conducive
environment for innovation such as the establishment of research institutions. For instance,
The Research Institute (TRI) was established with the cooperation of Toyota and GM Group
when it was first introduced in the United States.
Tesla
Tesla is currently ranked one among the top ten innovative companies in the vehicle
manufacturing industry worldwide. Tesla has the advantage of innovation environment hence
the reason for its remarkable growth within ten years only and without any experience in the
automotive industry. The disruptive innovation of Tesla is attributed to the genius team
behind the company production and operation activities (Hardman, Shiu and Steinberger-
Wilckens, 2015). With Elon as the most significant member for providing Internet genes;

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Black in charge of user experience and Tesla CTO who oversees the technological aerospace
of the company manufacturing process.
BYD
This company major in IT to achieve all its competitive advantage in the motor vehicle
industry. It combines technologies in IT, vehicle and new energy and is ranked as a high-tech
business worldwide. It is well-known for the benefits of its new energy innovation in motor
batteries among other leading technologies. Additionally, they produce their batteries and
other technology related gadgets for international companies like GM, Chrysler, etc.,
cooperated with giant global manufacturers to enhance their worldwide brand influence.
Marketing and innovative strategy of BYD, Tesla, and Toyota
BYD, Tesla, and Toyota have at least adopted the 4P approach in market positioning
(Armstrong et al., 2015). Tesla is a luxurious car customized to suit and attract the rich who
are in search for super quality and the desire for new things. BYD is the leading company in
new energy vehicles in China and is made to suit the public transportation field. This is
because of its energy saving and environmental protection features. Toyota is as well known
for its hybrid technology car which is also a cushion for unpolluted electronic technology.
The authors make four recommendations in four features of new energy vehicle innovation
model. First, in the innovative ecological environment, the companies should focus on
developing their technology in the areas of electronic control, batteries, and motor because
the new energy motor vehicle sector is a high-tech sector. Secondly, market positioning
should be aimed at the public transport sector to create awareness and then consider prices
after recognition. Third, under the innovation path, the companies should comprehend the
technology in new energy automotive to ensure long-term development. Lastly, the best