As the world's first company to park fuel vehicles, where is BYD's confidence?

There is a saying that "the fewer the words, the bigger the matter".

In the past two days, the topic of "BYD's discontinued fuel vehicles" has been hung high on the hot search lists of major social and information platforms such as Weibo, and for the development of China's automobile industry, BYD's decision may be a big impact.

This wave of "Tianhu"?

Due to ecological, non-renewable resource depletion and other reasons, so that human beings have to seek new energy and gradually reduce the dependence on oil, which is the fundamental reason for the world's automobile industry in recent years to electrification transformation, as a modern automobile industry started late in the country, in terms of fuel vehicles, China's car companies are indeed difficult to compare with Europe, the United States and Japan and other countries with a very mature automobile industry system, and the arrival of the "new four modernizations of automobiles" era is an important opportunity for China's automobile industry to complete catch-up, and even overtake in curves.

Therefore, in recent years, the national level has introduced a lot of policies to motivate or spur local enterprises to complete the transformation, from double points to lottery license restrictions, free purchase tax, coupled with the current international situation is unclear, oil prices have broken "9", further fueling people's enthusiasm for new energy products.

In this context, as a company that starts with batteries and focuses on new energy products, BYD's wave can be described as "Tianhu".

Of course, the most important thing is still BYD's own efforts, every year BYD will make large-scale investment in research and development, according to relevant financial reports, only in 2021, BYD R & D investment reached 10.627 billion yuan, an increase of 24.2% year-on-year, so there are now many technical achievements: DM-i super hybrid technology, 43.03% thermal efficiency Xiaoyun 1.5TI engine, EHS electromix system, blade battery, etc., it is worth mentioning, BYD is also the only car manufacturer in China with a complete industrial chain of IGBT.

Coupled with the unique understanding of design and car manufacturing process, BYD has produced a lot of high-recognition products in the market, according to the data released by the Association of Automobile Manufacturers, according to the data released by the Association of Automobile Manufacturers, BYD's single-month sales in February 2022 ranked first in the interrupt layer of the list of new energy manufacturers, reaching 86669 vehicles, an increase of 751.3% year-on-year, accounting for 31.8% of the market share, it can be said that in China's new energy automobile industry BYD single-handedly occupied "half of the country".

Originally, most of BYD's sales were contributed by new energy products, choosing to do "the first person to stop production of fuel vehicles" at this time, is the strength, is self-confidence, but also an attitude, a bit of operation, the heat harvested, brand awareness rose, the future whenever people mention new energy-related topics, BYD is a good talking point.

Electrical "catalyst"?

In fact, from the low-end to the supercar brand, under the general trend, major companies are preparing for the arrival of the era of electrification, such as Lamborghini is expected to launch the first hybrid model in 2023, Rolls-Royce's first pure electric product Spectre has also entered the testing stage.

But for now, the sales of domestic fuel vehicles and new energy vehicles are still "eight or two points", although the penetration rate of new energy vehicles is still increasing, but for those companies whose strength lies in traditional fuel vehicles, it is not realistic to give up the advantages in the traditional field, while adapting to different market systems in the era of electrification and polishing new energy products still need time, therefore, the time node for domestic mainstream companies to stop selling traditional fuel vehicles is generally 2025.

In addition, global companies such as Toyota and BMW will formulate timetables for discontinuing fuel vehicles according to the conditions of different markets, but the time is usually after 2030.

Here it needs to be explained that the sale of "traditional fuel vehicles", not the car that burns oil is gone, in the transition stage, oil-electric hybrid, plug-in hybrid and other products will still be very active, so for those who are difficult to accept pure electric products in a short period of time, the choice is still very diverse.

The topic returns to BYD, and the measure of stopping production of fuel vehicles will have a big impact on the Chinese auto market. In the Chinese market is very "internal" competitive environment, mainstream companies will not be willing to lag behind people, and the era of electrification will inevitably come, seeing that BYD has made a choice, those who have not yet made achievements in the field of new energy traditional enterprises will naturally double the pressure, which may lead to their suspension of traditional fuel vehicles Time will be advanced, at least, will accelerate their layout plan for the new energy market.

To some extent, BYD's decision to stop production of fuel vehicles is like a catalyst for the market, combined with other factors, in the past two years, we are likely to see a larger-scale concentrated outbreak of new energy vehicles.

The ideal "partner"?

In addition, don't look at the new forces of car manufacturing, cross-border car manufacturing and traditional enterprises in recent years to promote new energy brands in an endless stream, creating an illusion that "anyone can come to the new energy market to mix a foot", but in the end can make a finished product, like Dyson car manufacturing this "has not yet begun to end" plan abounds, because the cost of research and development of new energy vehicles is actually not lower than the development of traditional fuel vehicles, and even many foreign-funded companies have chosen to cooperate in order to share the cost.

As a company that can achieve the self-sufficiency of most auto parts, BYD is a very ideal partner, perhaps in addition to OEM and battery supply, some companies will seek to establish new ways of cooperation with BYD, such as the establishment of a new joint venture company, the launch of a new brand.

Although this is just a guess, but the reality is cruel, there are many companies in the field of traditional fuel vehicles perform well, to the field of new energy vehicles have not been able to do results, transformation is difficult, just on the new energy products, BYD's experience is worth learning.

Written in the end: As the world's first announcement of parking fuel vehicles of the traditional enterprises, BYD's confidence lies in a high degree of "self-sufficiency", and in recent years to seize the opportunity of explosive growth of the new energy vehicle market, BYD's user base plate has been quite impressive, coupled with the planning of a variety of products of Ocean Network is also in an orderly manner, technology has, word of mouth, products have, ATD has created a virtuous circle for its own development, the future of this "fault first" performance is not a problem.