An increasingly obvious trend is emerging: BYD has gradually become the "new king" after Tesla.
In november, the company sold a total of 97,242 passenger cars, up 84.1% year-on-year. Among them, the sales volume of new energy vehicles soared by 252.7% year-on-year to 90,121 units. This is the ninth consecutive month of growth in BYD's sales since March this year, and it is also a new record for monthly sales of new energy passenger cars in China so far.
The reason why BYD can achieve such rapid growth is first of all inseparable from the rapid development of the overall new energy automobile industry.
According to data from the China Automobile Association, in the first 10 months of this year, the production and sales of new energy vehicles in China exceeded the mark of 2.5 million units, reaching 2.566 million and 2.542 million units respectively, an increase of 175.3% and 176.6% year-on-year. In November, the penetration rate of China's new energy vehicle market increased to 19.5%.
Second, BYD's long-term "slow logic" in strategic execution has also played a key role in it.
Since 2021, the continuous increase in sales has brought ABUNDANT cash flow to BYD. However, BYD's net profit is running low. The reason is that BYD chose to reinvest a large amount of revenue into technology research and development and capacity expansion.
In the process of investing in long-term and heavy assets, BYD's new energy basic disk has also been polished more solidly. Once the overall industry is good, BYD's "growth flywheel" will turn faster and faster, and finally exceed the average growth rate of the industry.
The basic disk has been stabilized, hybrid + pure electricity parallel
In BYD's sales in November, there are two points worth paying attention to: one is that the proportion of new energy vehicles has reached 92.68%; the other is that the proportion of pure electric models has steadily exceeded that of hybrid models.
According to BYD's 2020 full-year financial report data, the company sold a total of 427,000 cars that year. Among them, 189,000 new energy vehicles, accounting for 44.26%, and 237,000 fuel vehicles, accounting for 45.74%.
A simple comparison of the data before and after, a clear conclusion can be revealed - BYD took less than a year to completely transform into a new energy vehicle company. At the same time, after the transformation of BYD, the sales of new energy vehicles in the past month are already close to half of the total sales of new energy last year. Such a transformation and expansion speed is almost impossible for other traditional OEMs in China.
Why is it so fast? The "flywheel effect" in modern corporate management theory may be simply explained.
The so-called "flywheel effect" means that in order to make the stationary flywheel rotate, it is necessary to push it repeatedly with great force at the beginning. In this process, each turn is very laborious, but the effort of each lap will not be in vain, and the flywheel will turn faster and faster. In the same way, in terms of company management, the current period is done deep enough in each business line, and a huge synergy will be formed between the business lines in the later period to jointly promote the overall business forward.
Looking back at BYD, this is one of the few OEMs in China that has laid out battery business and vehicle business at the same time. "Do what you don't have" and "insist on self-research and self-production" are also the logic of Wang Chuanfu's work.
Around such a big logic, BYD has been investing in the underlying technology and capacity transformation. For example, in 2020, BYD's R&D investment reached 8.556 billion yuan, accounting for 5.46% of revenue, higher than saic, Great Wall, Geely, Changan and other traditional car companies; in the first half of 2021, BYD's R&D investment reached 4.41 billion yuan, almost equivalent to the investment in 2016.
According to the latest three quarterly report data, as of September 30, BYD's investment in construction projects reached 6.111 billion yuan, an increase of 124.99% compared with December 31, 2020; due to the increase in foreign investment, BYD's other non-liquid financial assets were 654 million yuan, an increase of 129.67%; the advance payment for engineering and equipment assets also rose sharply, nearly 8 times compared with December 31, 2020.
Under the long-term high proportion of investment, blade batteries, DM-i super hybrid platform, e-platform 3.0 and many other product lines have been successfully rolled off the production line, and BYD's basic disk is already powerful enough. Driven by the DM-i super hybrid platform alone, BYD's DM models rose 499.8% year-on-year in November, with a total of 43,984 units sold, successfully carrying the banner for BYD in the transitional stage of fuel to pure electricity.
At the same time, with the help of "black technology" such as e-platform 3.0 and blade batteries, pure electric models have also become a new engine for BYD's growth. In November, BYD EV reached a new high, selling 46,137 units, up 153.2% year-on-year.
The volume price rises together, and the brand rises
In fact, in addition to the sharp increase in sales, BYD's brand premium ability is also continuing to increase.
In November, BYD Han reached a new high, with sales reaching 12,841 units; of which Han EV sold 10,021 units, it is China's first pure electric medium and large sedan with monthly sales of more than 10,000, and is expected to hit the monthly C-class sedan championship. As a luxury medium and large sedan comparable to the German BBA, Han has sold more than 140,000 since its launch in July 2020.
It is worth noting that in the research and development design of Han EV, BYD has once again embodied the basic method of "doing what is missing".
In order to benchmark the pure electricity and luxury standards under the new mainstream, Han EV is equipped with BYD DiLink 4.0 (5G) intelligent network connection system for the first time, and the maximum download rate of vehicle 5G is about 1Gbps, and the maximum upload rate is about 100Mbps. Based on the blessing of high-speed network, the latency of 5G is in the millisecond level, and users will hardly encounter stuttering and delay when switching different applications and browsing high-definition videos.
Aiming at the inaccurate positioning problem of complex elevated highways, dense streets, urban canyons and other weak signals, BYD dual-frequency positioning technology uses L1+L5 band for positioning, L1 has a carrier frequency of 1575.42MHz, while L5 has a carrier frequency of 1176.45MHz, L5's frequency is lower than L1, the wavelength is longer, the free space attenuation is smaller, and L5's coding ability is stronger. Therefore, under the same conditions, Han EV can improve the positioning accuracy of complex environments by 2 times.
"For BYD, this year is the year of the 'triple' outbreak of technology, products and sales, and our years of technology accumulation have been presented in products and markets." Li Yunfei, general manager of BYD's auto brand and public relations business department, once said that BYD will continue to promote brand upgrading in six aspects, such as optimizing brand vision, improving sales services, and improving marketing style.
In fact, in the path of brand upwards, BYD has already left a son in 2021.
On September 8, BYD officially released the exclusive platform e-platform 3.0 for pure electricity. The concept car ocean-X, built on the e-platform 3.0, also debuted, positioning a medium-sized high-performance sports sedan with an integrated blade battery body design, an eight-in-one powertrain and a four-wheel drive architecture.
"E-platform 3.0 is the product of BYD's integration of knowledge and action for many years, and is the most critical layout for BYD to shift from electrification in the first half to intelligence in the second half of the new energy vehicle revolution." Wang Chuanfu said that the e-platform 3.0 has the advantages of intelligence, efficiency, safety and aesthetics, fully releases the potential of electric vehicles, and can create models from 100,000 yuan to 400,000 yuan, achieving full coverage of small cars, medium-sized cars and large cars.
In addition, according to Li Yunfei' previous statement, BYD's high-end brand will be an unprecedented brand, which is new and independent in terms of brand, product, sales service network, and operation team. This brand is positioned at the high end, the price is expected to range from 500,000-900,000 yuan, the first model will be a high-end hardcore off-road vehicle, the brand is expected to be released in the first half of next year.
From the perspective of the entire new energy automobile industry, according to the judgment of Ouyang Minggao, an academician of the Chinese Academy of Sciences, china's new energy vehicle sales will be between 7 million and 9 million in 2025; by 2030, sales will be between 17 million and 19 million.
With the wind, BYD's future "flywheel" synergy may be more powerful.
(This article is tiring of the Titanium Media App, author |.) Rao Xiangyu)