2021 is the year of new energy vehicle fire, according to the data of the Association of Passenger Vehicles, the cumulative sales of new energy models in 2021 reached 2.989 million units, an increase of 169.1% year-on-year, and the performance was particularly eye-catching. Byd, which started with batteries, its stock price has also soared with the sales of its own new energy models. From 2020, its stock price has risen from about 45 yuan per share to a maximum of more than 260 yuan per share, and as of the close of trading on February 21, the market value is still more than 700 billion yuan, becoming a well-deserved leader in domestic auto stocks.
What exactly made BYD's "demon stock" born? What are its core competencies? Why is it Tesla's biggest competitor in the eyes of the media? Today we will talk to you about it.
BYD of "fish farming"
Among the many independent brands, BYD can be described as a maverick rising star. In the eyes of many people in the industry, BYD is also an alternative and strong competitor. And all this is because it can still create miracles frequently after cross-industry development.
Wang Chuanfu, Executive Director of BYD Co., Ltd
Friends familiar with BYD should know that BYD started with batteries. With the funds accumulated in the early days of batteries, BYD acquired Qinchuan Automobile at that time and officially started its own car-making journey.
From the first Flair to the BYD F3 to the later Dynasty family, BYD rose rapidly in just a few years and occupied a place in the highly competitive car market. A large part of the reason why BYD can rise in 2020-2021 is the emergence of "blade batteries" and DM-i super hybrid technology.
The fuel consumption of feeders is as low as 3.8L/100km, which is even lower than the gasoline-electric hybrid models launched by some joint venture car companies, and it is difficult for BYD to think about whether it is hot or not when oil prices are rising. So far, by now, BYD DM-i series model orders have long been in short supply, and the delivery time in the terminal market is about 3-5 months. Looking back in this way, BYD's soaring stock price is also reasonable.
Wang Chuanfu once said: BYD has a technical fish pond, and there are many fish in the fish pond, and when necessary, catch one out.
In addition to breakthroughs in hybrid technology, BYD has made great achievements in many fields. For example, there is BYD Semiconductor in the chip field, which released IGBT 4.0 technology in 2018; in the field of solar energy, BYD has a forward-looking layout as early as 2008, and its unique "optical storage integration" business model has been greatly recognized by customers; in the field of rail transit, BYD has invested 5 billion yuan to develop a cross-seat monorail "cloud rail" that has long been opened to traffic. In addition to the above, BYD also makes masks, parts, mobile phones, forklifts, buses and even rockets.....
Over the past decade, Wang Chuanfu's enthusiasm for "crossing the line" has allowed BYD's extension to continue to expand - not only to become a world-class oem, but also to become Bosch in the field of new energy. Previously, it was revealed that BYD had begun to supply blade batteries to the whole industry in April last year, and among the partners it showed, in addition to the "red flag" clearly marked, the others were replaced by "secret". The follow-up news has also been confirmed, such as the battery equipped with Changan Ford's new electric vehicle Mustang Mach-E, which is provided by Fordy. However, it should be noted that the model uses BYD's "811" ternary lithium battery, rather than the blade battery that has been mainly promoted in the past two years.
Nowadays, not only batteries, many sub-brands of BYD have formed a fairly complete industrial chain, which not only provides parts for BYD, but also provides parts for other automakers, which also guarantees its own profitability. However, rational to look at BYD's words, in fact, there is still a long way to go in battery technology, take the blade battery as an example, due to the characteristics of lithium iron phosphate batteries, electric vehicles will have obvious attenuation in winter, which is not only BYD, but also the entire industry is an urgent problem to be overcome.
"Moutai in the car" BYD
In the same year that BYD entered the automobile industry, Tesla was born in California, the United States, across the ocean. When Tesla achieved a breakthrough from a market value of $100 billion to $1 trillion in 21 months, driving Weilai, Xiaopeng, the ideal market value and stock price to rise together, to a certain extent, it shows that new energy vehicles have ushered in a critical point of take-off. In the continuous stage of the myth of wealth creation, BYD is regarded by many as "Moutai in the car" and can face Tesla head-on.
From the perspective of market capitalization, in the past seven years, BYD's market value has increased sevenfold, especially after the release of blade batteries in March this year, BYD's market value has gone all the way up, and it took only half a year to achieve nearly doubling the market value, the highest point once reached 920.544 billion yuan, and investors made a lot of money.
Although from the perspective of product positioning, BYD and Tesla have a big gap, but for BYD, this gap is not irreparable. Between January and December 2021, BYD Han sold 134,800 units, ranking fifth in China for new energy vehicles, second only to Tesla's China Model Y, which sells 198,400 units a year.
Looking to the future, BYD is also launching a new round of product offensive, the first model to meet with us this year will be a model called "SEAL", the new car positioning a compact pure electric car, the pre-price is expected to be between 150,000 and 200,000 yuan. Next, in the second quarter of 2022, the micro pure electric vehicle - Seagull will meet with us, and the new car is expected to be priced between 60,000 and 80,000 yuan. In the third quarter, the pure electric medium-sized SUV, Haishi, will make its debut, priced between 200,000 and 250,000 yuan, and the cruising range is expected to reach more than 700 kilometers.
In addition to the marine life series, the destroyer 05, which will be unveiled at the 2021 Guangzhou Auto Show, will also be officially listed in the first quarter of this year, with an expected price of 130,000-160,000 yuan, and using DM-i super hybrid technology, the competitiveness of the product is self-evident. The second model of the warship series, the Cruiser 07, will also be officially released in the fourth quarter of this year, and the new car is expected to be priced at 150,000-200,000 yuan. In addition to this accident, the warship series will also launch an MPV model, the vehicle or be named landing ship 07, is expected to be launched in the third quarter of this year, is expected to be priced between 200,000 and 300,000 yuan.
The high-end brand is coming to fruition
In an interview last year, Wang Chuanfu once said: "The next three to five years will be an era of great reshuffling and reshuffling of the automotive industry, and it will be a large-scale war. The market is changing rapidly, we must make quick decisions, of course, if you step in the wrong direction, the loss is not only money, the key is time, because after five years, the battle is over. A good direction and a good strategy should be precise, and only by grasping the direction can we take fewer detours and quickly reach the end. ”
In the face of many new forces such as Weilai, Ideal, Xiaopeng, Lantu, Extreme Krypton, Zhiji, Avita and other high-end intelligent electric vehicle brands of traditional car companies have mass-produced and delivered and sales continue to rise, BYD, which has entered the automobile market as a low-end model, has been criticized for being trapped in the high-end dilemma. However, this dilemma is believed not to last long, at present, BYD's high-end brand is already in intensive preparation.
On February 21, Zhao Changjiang, director of BYD's high-end brand preparation office, said that the business license of Denza Automobile Sales service Co., Ltd. was officially issued, which also means that BYD's rebuilding of high-end services and experiences is about to begin. At this point, the high-end brand previously exposed by BYD is also in the water, still for THE "Denza" brand jointly created by BYD and Daimler, the parent company of Mercedes-Benz. It is worth noting that BYD's high-end brand restart has been confirmed earlier last year, the brand includes MPV, hardcore off-road vehicles and other models, is expected to be priced between 50-1 million yuan, the first model is a hardcore off-road vehicle. According to the information revealed by THE latest BYD internal meeting, BYD's high-end brand Denza plans to hold a press conference in April 2022.
It is understood that the high-end brand will continue to have Mercedes-Benz involved, but this time to build a high-end brand, BYD will occupy a dominant position, BYD and Daimler signed an equity transfer agreement on the adjustment of Denza, after the completion of the equity adjustment, BYD and Daimler will hold 90% and 10% of the shares of Denza respectively.
At present, BYD needs more brands to move up and more model support, and the launch of high-end brands is to better distinguish BYD's existing car series. However, how to enhance high-end brand recognition will be a major problem facing BYD. Despite the help of Mercedes-Benz, from the perspective of terminal sales, the sales volume of deforestation X in 2021 and the launch of desist X in mid-January 2020 is only 4783 units, which is not as good as the monthly sales of the same price rival Nio ES6, which is undoubtedly a heavy blow for BYD.
Write at the end
At present, from the perspective of scale, BYD is still in the second echelon of China's own brand cars, and there is still a big gap between Itely, Great Wall and Changan with a million scale. However, from the perspective of market value, BYD has become the first, which also confirms BYD's achievements in the field of new energy on the one hand. With the acceleration of global electrification, BYD's high-end brands are now emerging. In the future, THE PRODUCT SEQUENCE OF ADI WILL BE CLEARER, AMONG WHICH THE DYNASTY IS POSITIONED IN THE MIDDLE AND HIGH-END, THE MARINE POSITIONING VOLUME, AND THE DENZA BRAND IS A SECRET WEAPON FOR THE BYD BRAND UPWARD. The next time we face Tesla, we believe BYD is ready.