On the evening of April 3, "BYD's discontinued fuel vehicles" landed on the first place in Sina Weibo's hot search.
On April 3, BYD officially announced that it will stop the production of fuel vehicles from March 2022 in accordance with its strategic development needs. This marks that BYD has become the first car company in the world to officially announce the suspension of fuel vehicles.
In response to BYD's move, netizens have talked about it:
Fuel Car Terminator! BYD is great!
New energy sells too well, production capacity can not keep up, to use the production line of fuel vehicles.
This should be the first car company to stop producing fuel vehicles! However, new energy vehicles have become the trend of the times, which is also very good.
BYD announced the suspension of production of fuel vehicles
According to the latest sales report, BYD's new energy vehicles sold 104,300 units in March, an increase of 160.9% year-on-year, a record high. Among them, the sales of DM plug-in hybrid and EV pure electric models were almost flat, dm plug-in sales of 50,700 vehicles, an increase of 615.2% year-on-year; EV pure electric models sold 53,700 units, an increase of 229.2% year-on-year.
BYD's total installed capacity of new energy vehicle power batteries and energy storage batteries in March 2022 was about 5.353GWh, and the cumulative installed capacity in 2022 was about 14.738GWh.
BYD also said that according to the company's strategic development needs, it has stopped the production of fuel vehicles from March 2022. In the future, in the automotive segment, the company will focus on pure electric and plug-in hybrid vehicles.
In fact, since BYD's production capacity of plug-in hybrid models has been declining month by month since the ramp-up of plug-in hybrid models, the proportion of fuel vehicle sales has been decreasing month by month, replaced by plug-in hybrid models. Judging from its sales data, since June last year, BYD's pure electric models and plug-and-mix models have accounted for half of the monthly sales. In March this year, BYD's sales of pure electric vehicles were 53,664 units, and the sales of plug-in hybrid cars were 50,674, still maintaining this trend.
In the past year, BYD has achieved a leading position in China's new energy vehicle market. According to the China Association of Automobile Manufacturers, its new energy vehicle market share reached 17.1% in 2021, an increase of nearly 8% during the year.
ACCORDING TOD's 2021 annual report shows that its annual passenger car sales were 713,400 units, of which new energy passenger car sales were 555,000 units, accounting for 77.79% of sales; from the perspective of revenue, the sales revenue of new energy passenger cars reached 79.418 billion yuan, accounting for 70.6% of the total automobile and related business revenue.
According to the annual report, BYD achieved revenue of 216.142 billion yuan last year, an increase of 38.02% year-on-year; net profit of 3.045 billion yuan, down 28.08% year-on-year. Among all the business segments, the largest contributor was the automotive business segment, accounting for 52.04% of the total revenue, and last year's revenue was 112.489 billion yuan, an increase of 33.93% year-on-year.
In 2021, by virtue of blade batteries, DM-i super hybrid, e platform 3.0 and other technologies, BYD adheres to the "two legs" of pure electric and plug-in hybrid, ushering in the outbreak of technology, products and markets, with annual sales of 740,000 cars and new energy vehicles exceeding 600,000, an increase of 220% year-on-year, ranking first in China for 9 consecutive years. In the first quarter of this year, BYD's cumulative sales of new energy vehicles have reached 286,000 units.
BYD new energy vehicles previously announced price increases
It is worth noting that the price of battery-grade lithium carbonate in the Chinese market has risen from 60,000 yuan / ton at the beginning of 2021 to the recent 500,000 yuan / ton, and the rapid rise in lithium carbonate prices has brought greater cost pressure to the entire industrial chain such as batteries and vehicles.
Based on the 50kWh of the charging capacity, the theoretical cost increase of the bicycle caused by the rise in the price of lithium carbonate has reached 13,000 yuan (iron lithium battery) / 15,000 yuan (ternary battery).
OEMs generally adjusted prices twice in January and March to cope with subsidy decline and cost increases, of which the first price increase was about 3,000-5,000 yuan, and the price increase was mainly used to cover the impact of subsidy decline; and with the recent price negotiations of OEMs and battery suppliers, the main engine factory carried out the second price adjustment to cover the rapid rise in battery costs.
As international oil prices continue to soar, the price of new energy vehicles is also rising on the other hand.
Just in mid-March, Tesla and BYD both announced price increases, with the highest price increases of 20,000 yuan and 6,000 yuan respectively.
According to BYD's latest financial report, in 2021, the total installed capacity of Fudi battery new energy vehicle power batteries and energy storage batteries is about 37.921GWh, and most of The Fudi batteries are lithium iron phosphate batteries, calculated at a unit price of 0.7 yuan / Wh, then the revenue of this part is about 26.545 billion yuan, which brings a lot of profit growth to BYD.
At the same time, BYD is also carrying out research and development and manufacturing of vehicle-grade chips. On October 15, 2004, BYD Semiconductor (formerly known as BYD Microelectronics) was established, whose main business covers the research and development, production and sales of power semiconductors, intelligent control ICs, intelligent sensors and optoelectronic semiconductors, and has an integrated operation of the whole industry chain including chip design, wafer manufacturing, packaging and testing, and downstream applications.
In 2020, after the completion of the name change, BYD Semiconductor announced that it intends to introduce strategic investors by means of capital increase and share expansion, and actively seeks to independently list at an appropriate time. According to the Tianyancha APP, BYD Board Semiconductor received a total of 3 financings in 2020. It is reported that the valuation of BYD Semiconductor is about 10.2 billion yuan.
The chairman of Weichai Power warns of new energy vehicles
While new energy vehicles are singing all the way, there are also people in the industry who make different voices.
According to First Finance, recently, in Weichai Power (000338. SZ) 2021 annual results conference, Weichai Group Chairman and CEO Tan Xuguang said that there will be a catastrophic overcapacity of new energy vehicles.
In terms of new energy, Weichai Power has been involved in hydrogen fuel cells since 2018, and has initially formed a fuel cell engine product with a wide coverage, which is mainly used in commercial vehicles. At this performance conference, Tan Xuguang pointed out in response to the topic of the new energy industry that in recent years, the new energy industry has "been more lively, rushing to the scene, there is disorderly competition", there are many companies involved in private activities, through the capital market to expand wealth, resulting in capital market disorderly capital expansion of new energy. This will lead to a catastrophic overcapacity of new energy vehicles, especially passenger cars.
Subsequently, Tan Xuguang said that the above statement was "carefully considered, not nonsense, which is a phenomenon that can be seen clearly in the industry." ”
Coincidentally, on March 26, Lin Nianxiu, deputy director of the National Development and Reform Commission, said at the 2022 China Electric Vehicle 100 Forum that the development of new energy vehicles in the mainland has achieved new breakthroughs and become new highlights, but problems such as blind investment and disorderly development of new energy vehicles still exist to varying degrees.
As the new energy track continues to be hot, a lot of capital is accelerating. There is a structural overcapacity problem in the industry. "While solving the problem of overcapacity of traditional automobiles, the automotive industry must also prevent overcapacity of new energy vehicles." The Association of Passenger Vehicles pointed out in the "Analysis of The Production Capacity of Passenger Vehicles in Mainland China in 2021".
Editor| Sun Zhicheng, Wang Jiaqi, Du Bo
Proofreading | He Xiaotao
Daily Economic News Comprehensive 21st Century Economic Herald, Per App, Securities Times, South +, First Finance