On April 3, BYD officially announced that it will stop the production of fuel vehicles from March 2022 in accordance with the company's overall strategic development and deployment. In the future, the automotive sector will focus all its industrial efforts on pure electric and plug-in hybrid vehicles. Unlike other traditional car companies, including Volvo, Volkswagen, Jaguar, Audi, Ford, Honda, etc., which only announced plans to stop production of fuel vehicles, BYD became the first car company in the world to officially announce the suspension of fuel vehicles.
In the current situation that the fuel vehicle market still has a huge amount, what is the reason for BYD to make this decision to stop production and focus on the new energy vehicle market? Xiaobian believes that it can be simply summarized as the following points:
First, strengthening environmental protection, achieving carbon peaking and carbon neutrality has been a global consensus, and the country has also listed the "double carbon" project as a future development strategy. BYD will continue to focus on the project, adhere to the green and innovative development concept, use scientific and technological innovation power, green and low-carbon cycle to promote social development, and lead the transformation of the automotive industry.
Second, international oil prices continue to rise, fossil fuel resources are in short supply, and new energy vehicles mainly rely on ordinary metal elements such as lithium iron phosphate, no longer rely on nickel and cobalt, effectively preventing foreign capital card neck, to solve energy security problems.
Third, with the continuous development of science and technology, more and more traditional models have gradually been replaced by new energy vehicles, and in the past year, the penetration rate of new energy vehicles has continued to increase significantly. By the end of February, the penetration rate of the new energy vehicle market has reached 28%, and by the end of this year, this data is expected to increase to 35%.
Of course, in addition to the above external reasons, BYD's sales of new energy vehicles have continued to soar in recent years, which has also given BYD people the confidence to adhere to the development path of new energy vehicles. At the technical level, BYD adheres to the independent research and development of core technologies in the new energy industry chain, and has a number of core technologies such as DM-i super hybrid, blade battery, e-platform 3.0, etc., and has formed a rich matrix of new energy models by empowering these technologies to products. In the past March, BYD's monthly sales of new energy vehicles reached 104338 units. Among them, the two models of EV pure electric and DM plug-in hybrid have exceeded 50,000, with 53,664 vehicles and 50,674 vehicles respectively. The growth rate is still huge, and the year-on-year growth rate has always remained above 300% compared with last year. The only domestic medium and large sedan Han series that can compete with the BBA, sold 12,359 units in a single month in March, with cumulative sales exceeding 190,000 vehicles, ranking firmly in the TOP1 of Medium and Large Cars of Chinese Brands, and continuing to lead Chinese brands to continue to make upward breakthroughs.
There is no doubt that the future new energy vehicle market will usher in a period of rapid growth, and at this moment, BYD announced the suspension of fuel vehicles, which is a major trend that conforms to the trend of the automobile market. As long as we hold the core technology in our hands and adhere to the development path of scientific and technological innovation, I believe that BYD will continue to lead the new energy vehicle market and drive the progress and development of the entire industry.