Leapfrog Thinking and the BYD Lesson

Hello 

In the early 1990s, China had a problem. It saw that most rich countries had built their wealth with strong automotive industries. So, it invited foreign carmakers in but with strings attached. Each company had to partner 50-50 with a local Chinese brand. The hope was simple: learn from the best, then outgrow them. But it didn’t work.

So they changed the question.

Instead of playing catch-up, China asked, what’s next? The answer: electric vehicles and renewable energy. Rather than trying to win an old game, they decided to leverage a new one.

Fast-forward to 2018. Tesla is given the green light to build a wholly owned factory in Shanghai. Within a year, Chinese EV makers had front-row seats to global innovation. They already had the tech, world-class batteries, software, and supply chains but they were still weak on design. Their solution? They hired German car designers and closed the gap fast. 

By 2022, BYD – a Chinese company – wasn’t just competing with Tesla, they were winning!

The lessons?

1. Long-term vision beats short-term imitation.

2. Leapfrogging requires courage to abandon the old playbook.

3. Invest where others haven’t looked yet.

4. Combine technical know-how with global talent.

5. Think systems, not silos.

Most companies are still trying to win a game that’s already over. BYD shows what happens when you decide to build the next one instead.

Actionable Insights

Step 1 | 

• If you want to leapfrog in your career or business, ask yourself this powerful question: what’s next?

Write a list of 10 ideas.

Step 2 |  

• Which idea from your list above excites you most? Use my list of 5 lessons from the BYD example, and figure out how you can implement this idea.

Until next time…