In recent years, if you want to ask what is the future direction of the development of the automotive industry? The high probability will tell you about new energy vehicles. However, if you want to ask whether there are car companies that have completely abandoned fuel vehicles, they have not been before, but recently, this is BYD. BYD became the world's first company to stop selling fuel vehicles, what drugs do BYD sell in the gourd?
First, BYD's first fuel vehicle in the world to stop selling?
According to the surging news report, on April 3, 2022, BYD announced that it will stop the production of fuel vehicles from March this year and will focus on pure electric and plug-in hybrid vehicles in the future.
A paper announcement directly made BYD the first car company in the world to officially announce the suspension of fuel vehicles.
At the same time, BYD also announced the full line of passenger car sales in March 2022: 104338 units, exceeding 100,000 units for the first time, respectively, by 50,674 DM models (plug-in hybrid models) and 53,664 EV models (pure electric models). What's more, sales of BYD's fuel models were already zero in March.
According to the news of 21st Century Business Herald, although electrification is the trend of the times, many car companies, including BBA, have planned a timetable for stopping production of fuel vehicles and completely transforming new energy, but most of the deadlines are between 2025 and 2030. In contrast, BYD's "farewell" fuel vehicles, although they have long been traced, are indeed unexpected in time and speed.
In June 2021, a bydie internal communication meeting minutes circulated online, after being asked "In the future, will all the company's fuel vehicles be completely replaced by DMI and DMP, and discontinued?" At that time, BYD replied that "the internal sales of fuel vehicles this year are expected to be about 150,000 units, and the planning of future fuel vehicles has also stopped, and it will be fully replaced as soon as next year (as long as the monthly production capacity of DMI reaches 80,000 units and the monthly shipment is 40,000 units)." However, in response to the above-mentioned meeting minutes, BYD responded at that time, "There is no such plan at present, and there is a demand in the market and consumers, and there is a demand for partner dealers." ”
According to the Beijing News Shell Finance report, according to the Shell Financial Reporter investigation, BYD's total car sales from January to February were 185,600 units, of which the sales of new energy vehicles reached 180,500 units, and fuel vehicles have tended to be "invisible" in BYD's product architecture, and in terms of price, the price of song fuel version models, which account for 3/5 of fuel vehicle sales, has a price gap of nearly 1/3 compared with Song new energy models, and only more than 100,000 yuan. It is also slightly insufficient in terms of brand power.
The data shows that BYD's fuel vehicle sales began to decline rapidly at the time of the 2021 DM-i models. According to BYD's financial report data, in 2020, BYD's fuel vehicle sales were 237,300 units, and the sales of new energy vehicles were 189,700 units, and fuel vehicles were still the "main force" of the brand, and sales rose by about 2% that year. However, in 2021, BYD's fuel vehicle sales will only 136348, and the sales of new energy vehicles will reach 593745, an increase of 200% year-on-year. Fuel vehicles are in decline in 2021, and the strength of DM-i can also be seen from the sales performance.
Second, what kind of medicine is sold in the gourd by BYD's suspension of fuel vehicles?
To be honest, the biggest feeling of seeing BYD stop selling fuel vehicles is unexpected but reasonable, why do you say so?
First of all, BYD is actually facing a situation in which fuel vehicles do not retreat. For BYD, although BYD's fuel vehicle development in 2020 is not bad in recent years, the problem is that BYD's strategic focus in these years is actually no longer on fuel vehicles, although the market has attracted attention in recent years or new energy vehicles.
First, in fact, the fuel vehicle market is also a state of not advancing against the current and retreating, BYD's obvious investment in fuel vehicles in these years of resources is not as good as new energy vehicles, which directly leads to BYD's competitiveness in the fuel vehicle market is declining, the market BYD's fuel vehicles are basically in a state of low price, fuel vehicles have gradually become chicken ribs for BYD in recent years.
Second, BYD is facing a situation of not retreating, which is because in recent years, BYD has adopted the same series of multi-mode play, that is, the same model has both fuel vehicles and new energy vehicles, the advantage of this practice is that it can save a lot of design costs and can also reuse a lot of existing production resources, but the problem is that of course, BYD's fuel vehicle market competitiveness is quite insufficient, the direct consequence is that the price of BYD fuel vehicles is often only about half of the new energy vehicles, for consumers, It is very easy to have the consumer illusion that I spent twice as much money to buy a battery, and this consumer perception will seriously affect the sales of BYD's new energy vehicles. Therefore, for BYD, fuel vehicles may still have value, but not stopping production of fuel vehicles will likely drag down its core new energy vehicle business, which is a bit too much to lose.
Third, the problem of BYD's increase in revenue and no increase in profit is still difficult to solve. IN RECENT YEARS, BYD's sales have surged, with BYD selling 730,000 new vehicles in 2021, up 75.4% year-on-year. The gross profit margin of related businesses fell by 7.81% year-on-year to 17.39%. The problem of increasing revenue and not increasing profits is very significant here at BYD, and IT may be difficult to account to the capital market if it does not want to think of a way.
Secondly, is THERE really hope for BYD's main new energy? From the current point of view, BYD is indeed one of the best enterprises in the traditional car companies in new energy, from BYD's own logic, BYD new energy logic should focus on the following aspects:
First, WHEN BYD has a new energy vehicle market, these years the country's policies are also more and more biased towards the direction of new energy, in the double integral policy and more stringent emission regulations and standards, BYD selling fuel vehicles feels like a feeling that does not conform to the market trend, since so Shuntian should be a better choice, BYD does not do fuel vehicles can be said to be a decision to push the boat along the water, not to mention that it can also win the world's first stop-of-production reputation, why not be happy, it is a good time.
Second, BYD also has its own geographical advantage in terms of production capacity, the current BYD market is quite prosperous, in this case, BYD actually has to make its own trade-offs, BYD itself said in the financial report that its factory passenger car production capacity is 600,000, commercial vehicle production capacity of 8500 vehicles, Its output has reached 597,100 and 10,000 vehicles respectively, the current BYD orders can be said to be soft, so it is entirely possible to close the low-profit fuel vehicle production capacity to make up for its large number of orders on new energy vehicles, so as to obtain more profits, which is BYD's current choice of geographical advantages.
The third is BYD's people and advantages in business development, whether we admit that the current is the best time for new energy automobile companies, supported by policies, there are also international market supply chain tight help, of course, the new energy vehicle companies are a car is difficult to find, in such a case, which car company's supply chain control ability is stronger, the more obvious the advantages of the market, for BYD, its vigorous development of the new energy market in recent years, coupled with its own long-term advantages in the field of power batteries, motors and other fields, BYD can be said to have the people and people in the new energy automobile industry.
Under such circumstances, BYD's main new energy vehicles still have their hopes, after all, BYD's advantages are still very significant.
Third, will the total suspension of fuel vehicles be the ultimate trend? From the perspective of the current development of China's automobile industry, China's automobile industry shutdown of fuel vehicles may be the trend of the times, on the one hand, it is indeed the inevitable result of industrial development, the development of fuel vehicles on the market is entering an inflection point, more and more new energy vehicle companies will increasingly bring the market tendency to new energy vehicles, the traditional logic of fuel vehicles is more and more difficult to meet the needs of the market, fuel vehicles will be eliminated by the market will be inevitable. On the other hand, from China's own energy structure, fuel for fuel vehicles is a kind of material that needs to rely on a large number of imports, the recent rise in international oil prices has seen the impact on our daily lives, once the new energy vehicles are popularized, they can effectively reduce our dependence on overseas energy imports, which will undoubtedly be very helpful to our own energy security. However, if we stand on a higher perspective, the time for fuel vehicles to be replaced worldwide may not be so fast, and there is still a huge market space for fuel vehicles in many parts of the world, and the coexistence of fuel vehicles and new energy vehicles in the future may exist for a long time.
However, BYD has become the first company to eat crabs, but whether SUCH BYD can really succeed is still an unknown, we may wish to wait and see!