Compete for the new energy market BYD broke the midstream industry chain

Reporters Huang Lin and Zhao Yi reported in Shenzhen

Following by byding bydy Semiconductor's IPO application through the ChiNext Board before the Spring Festival, BYD Co., Ltd. (002594. SZ, hereinafter referred to as "BYD") has once again upgraded its competition for the market share of new energy vehicles.

After BYD updated the group logo together with the BRAND logo of BYD Automobile, BYD released the first SUV model based on the e-platform 3.0 yuan PLUS, which started the delivery of more than 1,000 overseas pure electric buses. In addition to new logos and new models, BYD's investment pace is also growing.

After increasing the capital of Shenzhen Denza New Energy Automobile Co., Ltd. (hereinafter referred to as "Denza"), BYD officially established a wholly-owned subsidiary, Denza Automobile Sales service Co., Ltd., and invested in Fujian Jinshi Energy Co., Ltd. (hereinafter referred to as "Jinshi Energy"), focusing on the photovoltaic industry.

At the moment of the rapid development of new energy vehicles, BYD actively expands its production capacity to build the Xiangyang BYD Industrial Park, through semiconductors, power batteries, new energy vehicles and other layout of the upper and middle reaches of the industrial chain, in the increasingly fierce new energy vehicle market competition, BYD's "full blossom" strategy can help it expand its market share, it still needs to continue to observe.

Attack overseas markets

At the beginning of 2021, BYD replaced the new LOGO of domestic passenger cars, hoping to reshape users' perception of the brand. A year later, BYD Group announced a new upgrade to its brand, released a new logo, and upgraded the logo of its BYD cars. BYD said that the new logo of BYD Group will be used in its electronics, new energy, rail transit and automotive industries, while the brands in the passenger car sector of the automotive industry will use their own brand identities.

Two days after the release of the new logo, BYD launched the first SUV model based on the e-platform 3.0 yuan PLUS. It is reported that there are 5 models in the yuan PLUS, and the official guidance price is between 131,800 yuan and 159,800 yuan. Since the 2022 New Year's Day pre-sale, the domestic order volume of Yuan PLUS has exceeded 20,000 vehicles.

In terms of marketing strategy, the press conference of Yuan PLUS invited Olympic champion He Chong to stand on the platform and assumed the "vanguard" of BYD's passenger car going to sea plan. As BYD's first "strategic overseas" global passenger car, YUAN PLUS has opened pre-sales in the Australian market and named ATTO 3.

As the tide of new energy vehicle companies going to sea intensifies, BYD's ability to open up the overseas passenger car market with the yuan PLUS has attracted much attention. In terms of hardware, the metaPLUS is equipped with an eight-in-one electric powertrain, the overall efficiency of the system is 89%, the volume is reduced by 20% under the same power, and the weight is reduced by 15%. At the same time, the model has a wide temperature range high efficiency heat pump system, with -30 ~ 60 °C wide temperature range working capacity, breaking through the traditional distributed system architecture, using body electronic control domain technology, to achieve high integration, lightweight and efficient electronic and electrical systems.

At the software level, MetaPLUS uses DiLink 4.0 (4G) intelligent networking system to detect targets through the fourth-generation monocular camera, with full-vehicle radar, equipped with DiPilot intelligent driver assistance system, integrated ACC-S&G start-stop full-speed adaptive cruise system, AEB automatic emergency braking system, ICC intelligent pilot system, TSR traffic sign intelligent identification system, LDWS lane departure early warning system, BSD blind spot monitoring system and other auxiliary functions.

Comprehensive comparison of new energy vehicle SUV models on the market, it is not difficult to find that BYD is exploring the market through compact SUVs, including the previous Dolphin and the yuan PLUS this time. In fact, in recent years, compact SUVs have emerged in the new energy vehicle market, and the market strategy similar to that adopted by BYD is also a major way for new energy vehicle companies to compete for market share.

It is also worth mentioning that BYD has recently begun to deliver pure electric buses to Bogotá, the capital of Colombia, which marks the start of batch delivery of byBYD's largest overseas pure electric bus order (1,002 units) currently winning bids. Up to now, BYD has won more than 1550 pure electric bus orders in Colombia, accounting for more than 96.5% of the local electric bus market share.

Layout on the upper midstream

On January 27, 2022, BYD announced that the initial IPO application of BYD Semiconductor Shares on the ChiNext Board was approved. If there is no accident, BYD Semiconductor will become the first A-share listed company on-board chips, and it is also the first bydir group to succeed BYD (002594. SZ), BYD Electronics (00285. HK) after the third listed company.

In the competition for the market share of new energy vehicles, BYD's tactics have also expanded to the upstream of the industrial chain, in addition to promoting the listing of BYD semiconductors, BYD also continues to expand production and capacity in power batteries. According to the official website of Xiangyang China Merchants Bureau, the city has signed a strategic cooperation framework agreement with BYD in January 2022 to build the Xiangyang BYD Industrial Park, including power battery production lines and parts, zero carbon parks and auto parts and other projects, the industrial park will be built in three phases, with a total investment of 10 billion yuan in the first phase.

Plans such as opening up the supply of blade batteries throughout the industry and promoting bydir's chip supply have contributed to BYD's market share in the upstream field of new energy vehicles. Coupled with the manufacture of new energy vehicles, BYD is trying to break through a new round of market competition in the middle of the industry.

In terms of new energy vehicle products, BYD's capital increase has become a hot topic in the industry recently. Back in 2010, BYD and Daimler Greater China Investment Co., Ltd. (hereinafter referred to as "Daimler") signed an agreement on the establishment of a 50:50 R&D technology joint venture "Shenzhen BYD Daimler New Technology Co., Ltd.", which is committed to the development and production of new energy vehicles in China and For China.

Subsequently, the joint venture launched a new model under the brand name of "Denza", becoming the first Sino-foreign joint venture in China to focus on new energy vehicles. However, the development of Denza is not as smooth as imagined, at present, Denza is selling two models of Denza X plug-in hybrid and pure electricity, of which Denza X has sold a total of 4783 vehicles in 2021.

At the end of 2021, BYD and Daimler signed an equity transfer agreement on adjusting the Denza structure. Upon completion of the transfer, BYD and Daimler will hold 90% and 10% of Denza's shares, respectively. BYD said that the matter is subject to the approval of the relevant regulatory authorities and is scheduled to be completed in mid-2022.

In mid-February 2022, BYD's wholly-owned subsidiary, Denza Automobile Sales & Service Co., Ltd., was formally established with a registered capital of 50 million yuan, and the legal representative was HE Zhiqi, an executive of BYD. The outside world is confused about BYD's inclusion of Denza in a major business sector, and the relevant person in charge of BYD told reporters: "Denza's return is mainly committed to filling the gap of BYD's 300,000 to 500,000 yuan new energy models, and it is expected that in the next two years, Denza will launch 3 highly competitive new models in the Chinese market, including MPVs and SUVs." ”

In addition, BYD has recently increased its attention to the photovoltaic industry. It is reported that BYD has recently added foreign investment in Jinshi Energy, which has expanded its business scope to photovoltaic equipment manufacturing. Previously, BYD has also invested in photovoltaic company CSI Solar, focusing on solar photovoltaic modules.

(Editor: Zhao Yi Proofreader: Peng Yufeng)