In the face of fierce market competition and strong rivals, experts often recommend innovation and differentiation as the keys to survival. In practical business scenarios, this translates into the recently popular "borderline" incidents.

Regardless of how messy the process may be or the actual outcome, the controversy generated by these incidents has made the parties involved famous, and their value has soared. They continue to dance and push the boundaries as before.

Of course, only those who succeed can be called borderline strategists. In the auto industry, dominated by engineering men, borderline incidents are not uncommon. However, Toyota and BYD have leveraged them to become world leaders.

The rise of Toyota and BYD can be attributed to the benefits of the times. As global efforts to regulate automotive energy efficiency and emissions intensify, the automotive industry is finally paying the price for its past extensive development model.

Europe, the birthplace of the modern automobile, and North America, which pioneered industrialized automobile production, are reluctant to relinquish their long-held market power. As a result, turbocharged small-displacement engines and 48V mild hybrid technology have become increasingly popular.

Apart from lightweight vehicles and engine modifications, most automakers have not considered other methods to truly meet the seemingly "unreasonable" environmental protection requirements of governments worldwide, as pure electric vehicles (EVs) were not yet widespread or feasible at the time.

Toyota's global rise aligns perfectly with the current theme of environmental protection, particularly the high cost of automobile use triggered by the economic and oil crises.

Toyota achieves lower fuel consumption and emissions with engines of the same displacement and even outperforms smaller turbocharged engines in larger displacements. However, Toyota does not compete head-on with global auto giants but anticipates potential limitations in the future development of the automotive industry.

Therefore, Toyota was the first to introduce power batteries into fuel vehicles. These batteries are not just for starting the car or powering the cabin but are genuinely used to drive it. However, this is not the pure EV that would have been mocked in the past.

With the official launch of the Prius, the world's first mass-produced hybrid electric vehicle (HEV) in 1997, Toyota emerged as a leader in the auto industry's borderline strategies.

Amidst the collective confusion of global automakers, Toyota secured patents for HEV technology, laying a solid foundation for its ascent to the top.

Years later, as the global automotive industry embraced energy conservation and emission reduction, competitors had to sacrifice performance and power, reducing displacement to comply with regulations. In contrast, Toyota's HEV technology directly met new standards, offered the same price as fuel vehicles, did not require users to change their driving habits, and even provided a better driving experience with improved power and lower fuel consumption.

Based on HEV technology, Toyota firmly grasps the initiative in global automotive development. It not only has the world's largest application of electrified vehicles but can also seamlessly transition to plug-in hybrid electric vehicles (PHEVs), once again seizing the commanding heights of the global new energy vehicle market.

For multinational automakers other than Toyota, the future lies solely in pure EVs, a narrow path blocked by Tesla and Chinese automakers.

Borderline strategies embody boundless innovation because, from this perspective, opportunities are always abundant in market development.

Amidst the technological and patent barriers in global fuel vehicles and Toyota's monopoly on HEV technology, BYD sought to overtake Chinese automakers with the world's first PHEV dual-mode vehicle, the F3DM.

Despite the deprecation of hybrid technology as a transitional technology with no future and the lack of mature battery support in the market, BYD gradually established its self-research advantages in batteries, motors, and electronic controls, effectively eliminating the existential threat posed by global fuel vehicles.

Building on Toyota's HEV technology, BYD increased battery capacity, enhanced motor performance, and added external charging functionality, truly integrating fuel and pure electric power into one vehicle. While not the first to conceive of this idea, BYD was the first to succeed.

From January to October 2024, Toyota sold 8.3333 million vehicles globally, a slight year-on-year decrease of 1.5%, maintaining its position as the world's top-selling automaker. Among them, sales of HEVs reached 3.3572 million, a year-on-year increase of 20.7%.

From January to November 2024, BYD sold a total of 3.7409 million passenger vehicles, a year-on-year increase of 39.97%, making it the top-selling automaker in China and the world's leading seller of new energy vehicles. Among them, sales of PHEVs reached 2.1836 million, a year-on-year surge of 69.45%!

In fact, many automakers in the industry engage in borderline strategies, but not all succeed.

Globally, only Toyota and Honda have successfully navigated the HEV market, accelerating their expansion in the global market. Other multinational automakers, faced with impossible tasks due to strict fuel consumption and emission limits for fuel vehicles, have begun to apply the brakes comprehensively.

As for PHEVs, BYD is the only automaker to achieve large-scale production. Geely and Chery have only recently begun to popularize PHEVs and need more time to demonstrate their true strength.

Both HEVs and PHEVs must confront the soul-searching question from pure EV leaders like Tesla: When will they abandon internal combustion engines?

For Toyota and BYD, abandoning engines is a matter of time, but they prefer to push boundaries rather than conform, as that is their unique path to success.

Toyota has officially unveiled its next-generation super engine for EVs, while BYD is about to announce a dedicated battery for PHEVs with a pure electric range exceeding 300 kilometers. Engines are still present, even if in a supporting role.

Smaller, lighter engines with higher thermal efficiency and high-capacity, high-performance batteries specifically designed for PHEVs with ultra-long range are the key weapons for Toyota and BYD to lead the next generation of automotive development.