On April 3, BYD released a blockbuster news on the official micro-micro, announcing that it would stop the production of fuel vehicles from March 2022. At the same time, the sales data for March was also announced, and BYD's passenger car sales in March were 104338 units, an increase of 160.9% year-on-year. Among them, a total of 50,674 DM models were sold, 53,664 EV models were sold, and all new vehicles sold in March were new energy models.
It can be seen that it is the hot sales of its new energy vehicles that make BYD more confident and become the first traditional car company in the world to announce the suspension of fuel vehicles.
According to the announcement, BYD will focus on pure electric and plug-in hybrid vehicles in the automotive segment in the future. At the same time, BYD will continue to provide perfect service and after-sales protection for existing fuel vehicle customers, as well as the supply of spare parts throughout the life cycle to ensure worry-free travel.
In fact, at the end of 2021, Six traditional car companies, including Volvo, Ford, General Motors, Mercedes-Benz, BYD and Land Rover Jaguar, signed the Declaration on Accelerating the Transition to Zero-Emission Cars and Trucks at the 26th United Nations Climate Change Conference (COP26), with the goal of achieving 100% of zero-emission vehicles and truck sales by 2040. But BYD is so quick and loud to announce the cessation of production of fuel vehicles, the determination must be great!
It is worth mentioning that in the sales data of BYD passenger cars in 2021, the proportion of new energy models has reached 81.59%, and from this year's situation, the proportion of new energy vehicle sales is still increasing, so stopping the production and sale of fuel vehicles is itself a good capacity upgrade and optimization.
According to the data, from January to March this year, BYD's sales of new energy vehicles were 93168, 88283 and 104878, respectively. This year, BYD's annual sales target is 1.2 million vehicles, which is very promising according to the current trend, so it seems that BYD's announcement of the suspension of fuel vehicles is also based on the hot sales of new energy models.
In addition, from BYD's Sales in March, it can be seen that the Song family is 26,729 vehicles, the Qin family is 24,797 vehicles, and the monthly sales of the Yuan family and the dolphin are more than 10,000 vehicles, and their prices are between 100,000 and 200,000, including the newly listed destroyer 05, which just covers the main sales price range of traditional fuel vehicles.
Facing the higher-end market, BYD has THE DM and EV models of the Han and Tang families as a support. Therefore, from another aspect, there is no place for fuel vehicles in the BYD car series, and it is reasonable to announce the suspension of fuel vehicles at this time.
Red dot observation:
At the China Electric Vehicle 100 Forum in March, Wang Chuanfu, chairman and president of BYD Co., Ltd., pointed out in his speech that the penetration rate of new energy vehicles in mainland China has increased from 6% in January 2021 to 22% in December in just one year.
According to this calculation, the average monthly increase of 1.3 percentage points, and combined with the 28% penetration rate performance in the first three months of 2022, it is expected that the penetration rate of the new energy vehicle market in December 2022 may exceed 35%, which means that the market will increase more new energy vehicle users.
In our view, the technological breakthrough of the blade battery, coupled with the technological breakthrough of DM-i hybrid technology, coupled with its own strong vertical integration of industrial capabilities, BYD stopped producing fuel vehicles and focused on the field of pure electricity and plug-in hybrid, everything is a matter of course. This will further enhance the BYD brand image, especially the international image of the BYD brand.
In addition to the research and development and ownership of core technologies, as well as out of the prediction of the rapid growth of the new energy market in the future, BYD has made the decision to stop production of traditional fuel vehicles. Byd, which started with battery technology, seems to be one step ahead of its understanding of the development of new energy.