Since 2021, BYD should be regarded as a domestic auto manufacturers, the most market impact of a brand, thanks to the new energy vehicles, including hybrid models and pure electric models of the double rise, BYD in the domestic auto manufacturers in the ranking performance is also repeatedly pushed up, to February 2022, BYD with nearly 90,000 vehicles of the month's retail sales (data of the Association), ranked second in domestic auto manufacturers sales, ranked first in the sales of independent brands, becoming a new champion of retail sales of independent brands! BYD's existing performance in the market and sales level, as well as more new cars continue to be listed, make us very optimistic about BYD's sales and market prospects in 2022.
Friends familiar with BYD know that ATD is currently facing a big problem, that is, insufficient production capacity, mainly concentrated in the field of supermix models based on Song PLUS DM-i and Qin PLUS DM-i, and the current order to book Song PLUS DM-i models needs to wait at least 3 months to pick up the car, so at present, BYD's channels have a backlog of a large number of undelivered vehicles. However, we do not know how many undelivered vehicles BYD has accumulated in the channel, and we have expressed our views before, that is, if BYD's backlog of sales in the channel is delivered in a few months, then BYD's monthly sales are fully likely to be the first in China.
A few days ago, it was reported that BYD said in the minutes of the investor meeting that the current cumulative number of undelivered orders of BYD is 400,000 vehicles, and it is increasing month by month. Based on the number of orders, BYD conservatively estimates that sales will be 1.5 million units in 2022, and if the supply chain continues to improve, it will hit the sales target of 2 million units. The minutes of the meeting also show that bydy Han DM-i orders are good after pre-sale, and the follow-up is expected to sell more than 30,000 Han series models in a single month...
In fact, according to the sales data of January and February, if BYD's above data is true, the total order volume of 400,000 vehicles will be released in the remaining 10 months, which is equivalent to 40,000 sales per month, which is already much better than the sales of many domestic independent brands. So in our view, if according to the current trend, BYD conservatively reaches 1.5 million sales, impacting the annual sales target of 2 million, it is still very promising, of course, the premise is that there is no problem in the supply chain, especially the chip and battery raw materials.
So from BYD's expression, this year's annual sales of more than 1.5 million vehicles, or even reach 2 million are very promising, if there is no problem in the supply chain, then the annual sales of about 2 million vehicles, basically can be determined to win the 2022 domestic sales champion, that is, beyond FAW-Volkswagen, SAIC-Volkswagen, SAIC-GM and other joint venture brands. If that's the case, then BYD will have the opportunity to make history and become the first self-owned brand manufacturer to surpass the joint venture brand in annual sales.
Of course, as mentioned above, the biggest problem that may affect BYD's sales at present is the supply chain problem, especially chip supply and battery supply. But fortunately, BYD is not much subject to people in these two pieces, because BYD has its own IGBT chip production capacity, and BYD also has the ability to develop and produce blade batteries, so in fact, compared with other manufacturers that need to rely on third-party suppliers in a large area, BYD's pressure is much smaller. And because BYD has its own production capacity in terms of batteries, so in the previous collective price increase tide of domestic new energy vehicles, BYD used the cost advantage to increase the price margin almost the least, the price increase of hybrid models was 3,000 yuan, and the price of pure electric models increased by 6,000 yuan, which also maintained the market competitiveness of BYD's related products to a large extent.
Since the second half of 2021, BYD has launched a number of models, including but not limited to BYD Dolphin, Destroyer 05, Yuan PLUS, and in the future, it will also launch many new cars such as Han DM-i and new Tang series models. According to the sales performance of these existing models, it can be expected that in the future, the number of BYD's best-selling models will increase, which is a good news for BYD.
Of course, BYD's more powerful place is that almost all of BYD's sales are from new energy vehicles, and the sales of hybrid models and pure electric models are basically five or five, that is to say, BYD's current or future sales are dependent on new energy vehicles as the absolute main force, and there is no need to consider the transformation of fuel vehicles to new energy sources, and many traditional car manufacturers are experiencing "pains" in the process of converting to new energy vehicles, and some have even failed to transform. Therefore, with the increasing number of BYD orders, the stronger the performance at the sales level, the more successful BYD's transformation is, in this case, if it can win the domestic car sales champion in the eventful autumn of the automotive industry in 2022, the significance of BYD itself and its own brand is completely different.