On April 3, BYD released its March production and sales report. At the same time as the sales volume was announced, BYD Automobile announced a bigger news - according to the company's strategic development needs, it will stop the production of fuel vehicles from March 2022 and focus on EV pure electric and DM plug-in hybrid vehicles.
The announcement also mentioned that BYD will continue to produce and supply fuel vehicle parts, continue to provide perfect service and after-sales guarantee for existing fuel vehicle customers, as well as the supply of spare parts throughout the life cycle to ensure worry-free travel.
This also means that in the world's well-known automakers - such as Volvo, Volkswagen, Ford and Honda, etc., in the aggressive 2030 such a timetable for banning the sale of fuel vehicles, BYD has become the world's first fuel car company to abandon the pure fuel vehicle business.
Regarding the news that BYD stopped production of fuel vehicles, a wave was searched last year.
At the 26th United Nations Climate Change Conference, BYD has said that the company participated in the declaration of accelerating the transition to zero-emission vehicles and trucks, and signed the "Global Memorandum of Understanding on Zero Emissions of Medium- and Heavy-Duty Vehicles", which aims to achieve zero emissions of medium- and heavy-duty trucks by 2030 to reach 30% of sales, and achieve zero-emission medium- and heavy-duty truck sales by 2040 to promote zero carbon emissions by 2050. This means that it will stop producing fuel vehicles in 2040 or before, which is also the first time THAT BYD has clarified the timetable for banning the sale of fuel vehicles for passenger cars and commercial vehicles.
At that time, there were also some market forecasts that pointed out that due to the hot sales of new energy models in the market, BYD was likely to advance the timetable for banning the sale of fuel vehicles again.
Now it seems that the plan has indeed been greatly advanced. The explanation given by BYD is: the strategic adjustment of BYD, around the national "double carbon" strategic goal, adhere to the new development concept of "innovation" and "green", and lead the transformation of the automotive industry with the driving force of scientific and technological innovation; and promote the sustainable development of society with green and low carbon cycle.
From a longer-term perspective, all this seems to start from 2006 BYD to create the first generation of EV pure electric models, and in 2008 to create the first generation of DM plug-in hybrid models, more than ten years of time, including follow-up blade battery, DM-i super hybrid, e platform 3.0 and other independent and controllable core technology research and development, in these two years finally ushered in the outbreak of the consumer market. BYD also completed the power switch.
From the ridiculed F3e to "two legs, walking in unison"
Once upon a time, BYD was a name that people couldn't help but laugh at.
On February 10, 1995, founder Wang Chuanfu founded BYD Industrial Co., Ltd. in Longgang, Shenzhen, and the business at that time was actually mainly to develop and produce nickel-cadmium and nickel-metal hydride batteries, and the customers were mainly in the field of mobile phones.
On July 31, 2002, with the continuous expansion of its business, BYD was listed on the main board of The Stock Exchange of Hong Kong Limited. In 2003, BYD has grown to become the world's second largest producer of rechargeable batteries, and in the same year, BYD announced the acquisition of Qinchuan Automobile Co., Ltd. and officially entered the automotive field.
We also mentioned in a previous article on BYD's design ideas that most of the BYD gasoline cars with blue sky and white cloud standards in the early years were mainly "reverse development", such as the classic F3, and the S8 such a convertible sports car.
Of course, at that time, domestic automobiles had just started, and the automobile industry environment was completely incomparable with the present, in view of various reasons such as insufficient research and development capabilities and insufficient funds, similar operations can be said to be more than just BYD.
It was also in that era when fuel vehicles were still relying on imitation and learning. In 2006, the first F3e electric vehicle equipped with lithium iron phosphate batteries was born inside BYD. However, it was born in the early years, but it was never listed due to market supporting reasons. Within two years, BYD announced that it would abandon this pure electric vehicle.
Wang Jianjun, then deputy general manager of BYD Automobile, told the media at the time, "Regarding the commercial promotion of BYD's pure electric vehicles, we are also doing things according to changes in the market. ”
BYD first tried to do electric vehicles, doing pure electric EV products, but when soliciting market opinions and dealer opinions, everyone believes that there are problems in the supporting environment, and there is a need for transitional products, so the idea of hybrids that are more suitable for the market environment was born.
It can be seen that although fuel vehicles were still the main line of the market at that time, BYD was already considering the possibility of trying electric vehicles or even hybrid models that were more suitable for the needs of the market.
Image from Autohome
In 2008, BYD's first hybrid car, the F3 DM, was officially launched, which was also the debut of the first generation of hybrid system DM. The two power technology lines are officially unveiled, which also hints at BYD's strategic policy of "walking on two legs" later.
We are familiar with the story behind. In order to solve a series of problems in which plug-and-mix technology is technically difficult to meet consumer needs, BYD has opened a series of vertical integration of related technology chains in the automotive industry, from the first generation of DM on F3DM, to the third generation of DM launched in 2018 and the DM-i super hybrid system used in today's main products, BYD's plug-and-mix technology has been iterated for as many as four generations.
In 2018, the e-platform for pure electricity was also officially unveiled. On this track where pure electricity is the future scenario, there are actually few modes of walking in both technical paths at the same time.
In 2020, new energy vehicles have ushered in a transformation in both the policy and consumer markets. In the field of new energy, BYD adheres to the strategy of "two legs and walking together" in the field of pure electric and plug-in hybrid. Because BYD believes that two-thirds of China's car consumers come from first-time buyers, and first-time buyers will still prefer fuel vehicles in long-distance driving.
As a result, while BYD actively deployed the e-platform 3.0 to pave the way for the development of next-generation electric vehicles, DM-i Super Hybrid also made a smooth transition plan for two-thirds of the car-free families in the Chinese market, which met the market demand.
New energy sells too well, and production capacity gives way
ACCORDING TOD's latest annual report data in 2021, the sales of new energy vehicles in 2021 exceeded 600,000 units, an increase of 218.30% year-on-year, about one-fifth of the sales volume of the entire industry last year, and achieved the first domestic sales of new energy vehicles for 9 consecutive years.
According to the data released by the China Association of Automobile Manufacturers, BYD's new energy vehicle market share reached 17.1% in 2021, an increase of nearly 8% during the year, and sales were far ahead of the domestic new energy vehicle market.
Image from a screenshot of BYD's 2021 annual report
In 2021, BYD ushered in the 1 millionth new energy vehicle off the production line, DM-i a number of models are hot, it is precisely because it is more in line with the needs of consumer car scenes.
The data also shows that in 2021, BYD's sales of cars, new energy vehicles have accounted for more than 80%. In February 2020, BYD sold a total of 91,078 vehicles, of which 88,283 were new energy vehicles, accounting for 97%.
BYD's latest production and sales report for March shows that BYD passenger cars sold 104338 units in March, an increase of 160.9% year-on-year. Among them, DM plug-in and hybrid sales in March were 50,674 units, a sharp increase of 615.2% year-on-year; while DM model sales were high and stable, EV models sold 53,664 units in March, an increase of 229.2% year-on-year.
Both legs entered the 50,000-vehicle mark at the same time, walking in balance. Moreover, the sum of the two is exactly the sum of the passenger cars. That is to say, the production and sales report of pure fuel vehicles is 0.
However, fuel vehicles are not completely out of sales. From January to February 2022, BYD also sold 5,049 vehicles.
However, according to the information released by the minutes of the BYD investor meeting, BYD's cumulative undelivered orders have reached 400,000 vehicles, of which DM-i exploded after listing, and the order volume is still increasing month by month.
Therefore, it is a global consensus to stop the production of fuel vehicles, on the one hand, environmental protection, and achieve carbon peaking and carbon neutrality. Bydir focuses on the national "double carbon" strategic goal, adheres to the new development concept of "innovation" and "green", leads the transformation of the automotive industry with the driving force of scientific and technological innovation, and promotes the sustainable development of society with a green and low-carbon cycle.
With the continuous introduction of policies, there are more and more positive factors for the accelerated development of the new energy automobile industry, and the penetration rate continues to increase. From 6% in 2021 to 22% in 2022, it is expected to reach 35% by the end of 2022.
In addition, the discontinuation of fuel vehicles is actually to cope with the stronger market demand for DM-i models. From the perspective of order queuing performance, BYD's current production capacity is not enough to meet the continuous influx of DM model orders, and because many BYD models dm and fuel vehicles are actually collinear production, releasing orders for pure fuel vehicles can also take care of more DM-i models to meet market demand.
Of course, more memorable than these business analysis is actually BYD in the past decade, at that time the automobile industry related supporting facilities are not perfect, most of the car companies choose a relatively stable procurement plan excessive, but BYD through a series of acquisitions and integration, built a new technology and industrial model, in addition to the car itself, BYD has a start-up battery, and later vertical integration of the industrial chain acquisition of semiconductors, and then the later development of photovoltaic and cloud rail, constitute a huge territory of BYD shares.
BYD became the only BYD
From the data point of view, BYD is the first new energy vehicle company in China to enter 100,000 monthly sales.
From many car companies in the past, it is difficult to define BYD.
BYD is not Ford and Volkswagen. The T-type car and the platform have opened the curtain on the large-scale production of automobiles, but it is still the form of upstream and downstream cooperation and integration of the traditional automobile supply chain. In the field of new energy, Ford and Volkswagen have also lost such appeal.
BYD is not Tesla either. In terms of data, Tesla produced more than 305,000 vehicles and delivered more than 310,000 vehicles in the first quarter, with production and deliveries increasing by nearly 70% year-on-year. BYD is only slightly inferior, delivering 285,000 vehicles, which is obviously a double confrontation with Tesla in the new energy market.
But BYD is really not yet, the computing company known for its software and computing power.
The source of the image comes from the photo shoot of the pin driver editor
In the era of new energy vehicles, there is Wei Xiaoli, but there is no BBA. Tesla is expanding its Berlin plant, which is expected to have an annual production capacity of 500,000. BYD is also busy expanding its production capacity in Xi'an, Zhengzhou, Changsha, Fuzhou and Hefei, with a target capacity of 200,000+ by the end of the year.
BYD, the only BYD.
*Header image from Reuters
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