Car Review Observation, Car Review Agency, No. 542
Foreword: In November last year, six car companies around the world signed an agreement to stop selling fuel vehicles, and they did not expect that the first car company in the world to stop producing fuel vehicles became the first car company in the world to stop producing fuel vehicles, and it was BYD!
Recently, BYD said on its multiple official channels: According to the needs of strategic development, BYD Automobile will stop the production of fuel vehicles from March 2022. In the future, BYD will focus on pure electric and plug-in hybrid vehicles in the automotive segment.
We know that in the market economy, the brand plays the role of façade, and capital means the right to speak. BYD is like a "rich man" who sits on a wealthy family, as if "rich and willful" has become the capital that BYD stops selling fuel vehicles and hands over in advance.
So, is this really the case?
If you think so, it seems a little superficial.
1
Technology is king, go with the flow
The development of new energy vehicles is a national strategy, and BYD conforms to the situation.
The mainland's new energy automobile industry has gradually reached saturation from raw material supply, power batteries, vehicle manufacturing and other facilities and equipment. In the early days, many of the old car companies mostly rushed to subsidies, and some relied on PPT "flickering" capital to force their way into the car-making field.
However, BYD is "telling the truth and doing practical things", relying on the support of technology, products and markets, innovative appearance, strict control of quality, and gradually accelerating the process of replacing fuel vehicles with new energy vehicles.
In the past few years, the domestic high-tech field has always been suppressed by foreign companies, and in the final analysis, it is lost in technology. BYD knows that the mastery of core technologies is the economic lifeblood of developing an enterprise.
Subsequently, it has been committed to the development of technology, and under the efforts of many years, it has finally successfully launched the world's safest blade battery and DM-i hybrid system, e-platform 3.0 and other technologies, and now masters the core technologies such as batteries, motors, and electronic controls.
BYD's good technology is not just talk, but reflected in actual actions.
Take BYD DM-i as an example, as a PHEV, in fact, has reached the fuel consumption of HEV.
In the past, automobile power was divided into four categories, and each car company needed to formulate a technical route for the next 3-5 years according to these four categories:
1, pure fuel: low cost, fuel consumption is relatively high. Rely on engine and transmission technology.
2, HEV: the cost is slightly higher, the fuel consumption is very low.
3, PHEV: the cost is higher (with the battery cost is reduced and reduced), the fuel consumption of feed is even higher than that of fuel vehicles.
4, pure electric EV: high cost, the cost of use is very low, but the energy supplement is relatively inconvenient.
What is the significance of BYD DM-i?
Its appearance is a bit "against the sky", it can be said that it balances the disadvantages of high feed oil consumption of PHEV, so that the feed fuel consumption reaches the level of first-class HEV.
That is to say, a DM-i can drive electricity in the city, long-distance oil, and low car cost hit the traditional HEV market and hit the traditional PHEV market; at the same time, DM-i joined hands with pure electric, traditional HEV, and traditional PHEV to lay a solid foundation for subverting the fuel vehicle market.
In addition, BYD's "blade battery" has also played a role in the god assist, although the essence of the use of lithium iron phosphate battery, but compared to the car that is still using ternary lithium battery, its advantages are very obvious, high safety, more cycle times, and the battery life is also relatively long.
In this regard, some professionals also pointed out that due to the technological breakthrough of blade battery and DM-i hybrid technology, coupled with its strong vertical integration of industrial capabilities, BYD can replace fuel models by competing with plug-in hybrid models, achieve good consumption upgrades, and achieve effective replacement for international brand fuel vehicles.
2
Market And word of mouth double harvest
As the forerunner of domestic new energy vehicles, BYD has capital and technology, and expanding the territory has become the top priority of enterprise development, and it is also a preparation for "having a market and word of mouth".
First of all, the traditional fuel vehicle is used as a representative of the power, and then two or more power models such as Han, Qin PLUS, Tang and Song PLUS, which are mainly based on the "Dynasty" series, are launched to meet the needs of consumers in different regions, and then the pure electric models of the "Ocean Series" are the main ones, which further expands BYD's brand influence in the young consumer market and improves the matrix of scale.
This development strategy of plug-in hybrid and pure electric "double entry" is indeed a wise move to break into the new energy vehicle market.
Due to the decline in subsidies for new energy vehicles this year, under the impact of rising raw materials and rising oil prices, many car companies have adjusted the prices of their new energy vehicles, so the price increase is bound to affect consumers' desire to buy new energy vehicles, but it has not been verified by BYD.
BYD's guidance prices for new energy vehicles related to its "Dynasty Network" and "Ocean Network" have been raised by 1,000-7,000 yuan, but this has not dispelled consumers' idea of buying BYD's new energy vehicles, but believes that "buy early and enjoy early!".
After all, from the industry analysis, the price increase of new energy vehicles has long been slim, and there is pressure on the entire automotive industry, and traditional car companies seem to be more trustworthy than the new energy vehicles of new car-making forces.
Why?
The data shows that in the past year, BYD has adhered to the "two legs" of pure electric and plug-in hybrid with advanced technologies such as blade batteries, DM-i super hybrid, and e-platform 3.0, ushering in the outbreak of technology, products and markets.
BYD's annual revenue in 2021 reached 216.14 billion yuan, ranking first among domestic car companies. The annual sales exceeded 730,000 units, and the proportion of new energy vehicles increased by 81.3%, which is more than 10% more than the total sales of 3.52 million new energy vehicles in China.
In addition, the proportion of new energy vehicles in BYD's overall sales this year has reached 95%, and the sales volume in March exceeded 100,000 for the first time, of which DM plug-in and hybrid models sold 50,674 vehicles, a year-on-year surge of 615.2%; EV model sales of 53,664 units, an increase of 229.2% year-on-year, the proportion of pure electricity, hybrid products is basically flat.
Sales volume is linked to production capacity, and BYD's production capacity is close to the ceiling. Judging from BYD's production and sales data in the first quarter, BYD's cumulative sales in the first three months were 292,000 units, and the cumulative sales reached 291,000 vehicles, which was basically in a state of full production and full sales.
And it is revealed that ATD's cumulative undelivered orders have reached 400,000 units, and they are still growing month by month.
3
Strategic precision One step ahead
Back to the main topic, although BYD's suspension of fuel vehicles is somewhat unexpected, it is also reasonable. The vigorous development of new domestic car-making forces has accelerated the development of new energy vehicles, while the traditional car company BYD is the pioneer of the "ban on combustion".
Even with the general trend of electrification, the time for many car companies to plan for transformation is still relatively conservative, such as Changan, Audi, BMW and other car companies, although they have planned a timetable for stopping production of fuel vehicles, but the plan is between 2023 and 2030.
Therefore, BYD has previously realized new energy from the layout of sedan-SUV-MPV, which has become the basis of "no combustion" and has also won the initiative for future market competition.
It is worth noting that Wang Chuanfu, chairman and president of BYD Co., Ltd., said in his speech at the China Electric Vehicle 100 Forum (2022) held at the end of March:
New energy vehicles have comprehensively surpassed traditional fuel vehicles in terms of performance, shape, noise, acceleration, smoothness, intelligence, and cost of use. By the end of this year, it is expected that the penetration rate of new energy vehicles in the mainland will reach 35%.
The replacement of new energy vehicles for fuel vehicles will only be fast, not slow, and the more to the end, the more the speed of change is beyond imagination, and the same is true for private cars.
Looking back at his speech now, BYD's decision to stop production of pure fuel vehicles can be seen.
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