On April 3, BYD Automobile officially announced that it will stop the production of fuel vehicles from March 2022 in accordance with its strategic development needs. At this point, "new energy vehicle leader" is no longer a slogan, and BYD has become the first car company in the Chinese market to announce the suspension of fuel vehicle production and put it into practice.
BYD said that in the future, BYD will focus on pure electric and plug-in hybrid vehicles in the automotive sector. BYD will continue to provide continuous service and after-sales support to existing fuel vehicle customers, as well as the supply of spare parts throughout the life cycle.
BYD's suspension of production of fuel vehicles is not without a trace. ACCORDING TOD's latest March production and sales report, its new energy vehicle production in March was 106,700 units, sales of 104,900 units, while fuel vehicle production and sales were "0"; from January to March, BYD's cumulative sales of fuel vehicles were only 5,049 units, down 89.78% year-on-year, and accounted for only 1.7% of total sales.
According to the data, in March 2021, BYD's sales of new energy vehicles exceeded the traditional fuel vehicles for the first time, reaching 59.33%, and IND's cumulative sales in 2021 were 740,000 vehicles, of which the sales of new energy vehicles were 603,800 units, accounting for 81.58%; while the sales of fuel vehicles were 136,300 units, accounting for 18.4%.
At the same time, in the 2021 financial report just released by BYD, there was no mention of the development of fuel vehicles, only in the automotive business part, "the Group will actively grasp the historic development opportunities of the new energy automobile industry", "focus on market safety pain points", "actively explore intelligence" and "increase production capacity expansion".
For the next market performance, BYD revealed in the minutes of the investor meeting after the release of the 2021 financial report that BYD's cumulative undelivered orders have reached 400,000 units and are still increasing month by month. According to this, BYD conservatively expects to sell 1.5 million vehicles in 2022; if the supply chain is good, it will hit the sales target of 2 million units. The minutes of the meeting show that BYD Han DM-i sales orders are good after the listing, and the follow-up is expected to sell more than 30,000 Han series units in a single month. BYD said that the current growth trend of raw material prices has slowed down, and if the price of lithium carbonate remains at its current price, it will not have much impact on the sales of new energy vehicles this year.
At the same time, BYD revealed some product layouts this year in the financial report. In terms of plug-in hybrid, Models equipped with DM-i super hybrid technology such as Song MAX DM-i and Destroyer 05 have been listed one after another; in terms of pure electricity, after Dolphin, the Yuan plus model equipped with e platform 3.0 has been listed in February 2022, and more models equipped with e platform 3.0 will be launched on Dynasty Network and Ocean Network.
It is also understood that BYD is also further expanding the high-end market and launching high-end brands, and the price range is expected to be more than 500,000-1 million yuan. After the equity change, the Denza brand will also launch a new car to the market in 2022. According to the plan, Denza will launch three new models in the Chinese market in the next two years, including MPV and SUV.
Judging from the overall performance of the current market, the new energy vehicle market is currently in high demand, and the growth rate has completely crushed fuel vehicles. According to the China Automobile Association, from January to February, China's automobile production and sales reached 4.235 million units and 4.268 million units, up 8.8% and 7.5% year-on-year, respectively. Among them, the production and sales of new energy vehicles were 820,000 units and 765,000 units, an increase of 1.6 times and 1.5 times year-on-year. At the BYD investor conference, the penetration rate of new energy vehicles will exceed 35% for the whole year, and may reach 40%.
(gcy source: Financial Associated Press)