BYD has made the choice to completely switch to new energy vehicles, how will other fuel vehicle companies make a choice? The decision to determine the fate of the enterprise cannot be careless, but the time is getting more and more urgent.
Text / Zhao Ying
During the Qingming Festival, most of the time is spent meditating. In the spring, in the leisurely laziness of spring, I have recovered the fatigue of my recent academic work. Walking in the morning, it is already a thousand trees, and the spring color is full of eyes. By the way, the apricot blossoms quietly fill the path.
I was about to continue writing when I got home, but A major news woke me up from my sleepy state: BYD announced that it would stop producing fuel vehicles. It's a big deal, and it's worth writing a few words.
Since this is a landmark event for the automotive industry, the relevant news will be briefly reproduced here: On April 3, BYD Automobile officially announced that it will stop the production of fuel vehicles from March 2022 according to the needs of strategic development. BYD said that in the future, BYD will focus on pure electric and plug-in hybrid vehicles in the automotive sector. BYD will continue to provide continuous service and after-sales support to existing fuel vehicle customers, as well as the supply of spare parts throughout the life cycle.
BYD became the first manufacturer of fuel vehicles to officially announce the bidding of fuel vehicles.
BYD occupies a special position in China's auto industry, being both the "new force" in the "old forces" and the "old forces" in the "new forces".
BYD is one of the pioneers of private enterprises breaking into China's auto industry after China's accession to the WTO. BYD started with batteries and then entered the field of fuel vehicle production.
With the rise of new energy vehicles, BYD has led the trend in the field of new energy vehicles by virtue of the advantages accumulated in battery research and development. From the perspective of battery technology, blade batteries have been launched; from the perspective of the production and sales scale of new energy vehicles, it is in the forefront.
In March 2022, BYD produced 106,700 new energy vehicles and sold 104,900 units, far exceeding Wei Xiaoli. Therefore, BYD is the "new force" among the "old forces".
However, BYD has been deeply involved in the field of traditional fuel vehicles for many years, and belongs to the "amphibious" enterprises of new energy vehicles and traditional fuel vehicles. Therefore, BYD is also the "old force" of the "new forces".
Despite this, BYD's categorical announcement of the farewell of fuel vehicles is still of symbolic significance.
From the industry level:
First, BYD's suspension of fuel vehicles marks that traditional fuel vehicle manufacturers have begun to shift from the thinking and layout stage of corporate strategic transformation to the implementation stage.
IN THE FIELD OF TRADITIONAL FUEL VEHICLE PRODUCTION, BYD IS A SECOND-TIER ENTERPRISE, BUT IT IS ALSO AN IMPORTANT ENTERPRISE. In 2021, BYD sold 740,000 vehicles, of which 603,800 new energy vehicles were sold, accounting for 81.58% and fuel vehicles were sold 136,300 units, accounting for 18.4%.
The overall transformation of important enterprises in the field of fuel vehicles to new energy vehicles will have a rather shocking and exemplary effect on the entire industry.
Second, BYD has taken the initiative to make strategic transformations, indicating that the mainland government's strategic roadmap for new energy vehicles so far is basically correct.
In the process of the rise of global new energy vehicles, some developed countries have announced a "ban on combustion" timetable, and the mainland also has such calls. However, the government has basically adopted the practice of promoting and encouraging the development of new energy vehicles, and does not make mandatory administrative restrictions on "banning combustion".
BYD's decision shows that handing over the decision to "ban combustion" to the market and to enterprises is a feasible, less volatile, and in line with the reality of economic development.
Third, the strategic decision announced by BYD marks the acceleration of the mainland automobile industry as a whole to the field of new energy vehicles, which is the embodiment of the continuous acceleration and deepening of the development process of new energy vehicles since last year (the author calls it the "first year of new energy vehicles").
From a global perspective, the overall transformation of fuel vehicle companies into new energy vehicle companies marks that China continues to lead the world in this field.
Fourth, BYD's actions are of exemplary significance for how other fuel vehicle companies can gradually "withdraw" from the field of fuel vehicles, and how to determine the "withdrawal" process that is in line with their own interests to maximize and meet social responsibility.
For example, how to dispose of and utilize the original heavy assets (fuel vehicle production lines, etc.); how to stably maintain the "stickiness" of the original customers and guide them to make transfers; how to seize historical opportunities, the time node of opting out, and so on.
At the micro level:
First of all, BYD's decision shows that fuel vehicle companies are making all-out efforts to rush into the field of new energy vehicles, which will accelerate the change of the existing competitive situation in the field of new energy vehicles.
In fact, the "new forces" do not have a clear advantage in the field of new energy vehicles. In 2022, the top few in the field of new energy vehicle production and sales in the mainland are already traditional fuel vehicle manufacturers. When fuel vehicle companies stop the production of fuel vehicles and enter the new energy vehicle track, it is bound to change the competitive situation in the field of new energy vehicles.
Secondly, BYD is an enterprise with the core components of new energy vehicles - battery research and development production capacity. In April 2021, BYD has begun to supply blade batteries to the entire industry. BYD's full entry into the field of new energy vehicles will inevitably pose greater challenges to the corporate structure and core competitiveness of competitors, forcing other new energy automobile companies to rethink their strategies.
How to lay out the core part of new energy vehicles (software, chips, batteries) is the core question that every new energy vehicle enterprise must answer.
Third, BYD has a multi-variety, full-range (even electric bus) layout in the field of new energy vehicles. In the field of new energy vehicles, BYD not only has pure electric vehicles, but also has been deeply involved in plug-in hybrid vehicles for many years. Compared with BYD, other single models of enterprises, will inevitably increase pressure.
Finally, because BYD has its own battery supply chain, coupled with the full production of energy vehicles, with the expansion of scale, the ability to digest costs is gradually enhanced, which will also have an impact on the competitive situation and ranking in the field of new energy vehicles.
BYD has made the choice to completely switch to new energy vehicles, how will other fuel vehicle companies make a choice? Heaven and earth turn, time is pressing, ten thousand years is too long, only to fight for the day. The decision to determine the fate of the enterprise cannot be careless, but the time is getting more and more urgent. 【Copyright Notice】This article is the original manuscript of Automan Media, and may not be reproduced without authorization.