Abstract
This article will examine some of the reasons why the automobile industry in China has become the subject of so much interest in recent years. In particular, it will focus on its capacity for innovation through an in-depth study of one company: the BYD group. The article will examine the growth of the group and trace the development of the innovative strategies that have helped it to become a significant player in the electric car market. It will highlight three particular levels at which innovation has taken place, the organisational, human resource management and technological levels, and will analyse how these innovations interrelate to the overall breakthrough strategy of BYD. The article concludes with some observations about the capacity of BYD to continue to innovate, prosper and grow using its existing strategy.