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Hybrid models are fighting in China, what did Toyota miss, and what did BYD do right?

Text | Hua Shang Tao Strategy Zhao Yu

No one expected that the domestic hybrid car outbreak would come so quickly and warmly.

The former hegemon Toyota has been eclipsed, and BYD has become the first in China's new energy with the sale of DM-i technology and Dynasty hybrid models such as the Song Dynasty.

You know, whether it is an electrification or a hybrid track, Toyota can be called a pioneer and founder, and its position in the automotive industry is self-evident.

In 1995, Toyota unveiled the Toyota Prius at the Tokyo Motor Show, the world's first hybrid car. In 2003, under the background of the rapid rise in global oil prices, prius, which has been mass-produced, has become the "new darling" of the automotive industry with its ultra-low fuel consumption of 3.22 liters per 100 kilometers.

Hybrid models are fighting in China, what did Toyota miss, and what did BYD do right?

China's local hybrid market has begun to explode, and it has only been a matter of recent years. In the past two years, Changan, Chery, Great Wall and BYD have all launched models with autonomous hybrid power systems.

With the blockbuster models of Song PLUS DM-i and Qin PLUS DM-i, BYD has achieved sales volume of domestic and foreign car companies. As of November 2021, BYD has sold a total of 184445 hybrid vehicles, and sales reached 38,771 in October alone.

Toyota launched the Prius in the Chinese market as early as 2006, but its subsequent development was not smooth.

When it entered the Chinese market, Toyota set a goal of selling 3,000 cars a year. However, in the first year, it suffered a major setback, with only 2152 units sold. By the second year, there were not even 500 sales.

Why is Toyota and BYD presenting a completely different situation in the market, is it because Toyota's cars are not good? The answer is no.

Hybrid models are fighting in China, what did Toyota miss, and what did BYD do right?

Prius once had the title of "the best hybrid model", and its hybrid system is also one of the best in the world, and the performance is naturally needless to say.

The performance is perfect, and the real reason why it is difficult to open the Chinese market is the price.

At that time, the price of a Prius was between 230,000 and 280,000, and the same price could buy a domestic high-end SUV, and even consider starting a BBA entry model. In contrast, the Toyota Prius is not advantageous in terms of configuration and brand.

In China, cars accounting for the majority of car sales are still cars below 150,000 yuan, and cars with more than 300,000 yuan account for less than 10%.

Hybrid models are fighting in China, what did Toyota miss, and what did BYD do right?

And Chinese brands have seized this point, rising in the field of autonomous hybrid systems and beating the price down.

When domestic brands first entered the hybrid car market, the price of products has always been high. Since there is no independent hybrid architecture in the early stage, most local hybrid vehicles will directly superimpose the hybrid system on the fuel platform, which leads to the complexity of the hybrid system and the difficulty of reducing the cost.

At that time, in the domestic hybrid market, Honda and Toyota basically monopolized all businesses. It was not until 2020, when Great Wall and BYD successively released the DHT hybrid system and the DM-i hybrid system, that the situation changed.

The market has revealed a truth to us: only when independent brands have their own hybrid system can they occupy a place in the blue ocean of the hybrid market.

Hybrid models are fighting in China, what did Toyota miss, and what did BYD do right?

Hybrid vehicles, as a transitional product from fuel vehicles to pure electric vehicles, must be a must in the evolutionary history of the automobile industry.

In China, on average, nearly 7 out of every 10 hybrids are Toyota hybrids. That is to say, although the development momentum of domestic hybrid vehicles has been rapid in recent years, China's development in this field has not led.

From the perspective of the number of hybrid vehicles, in 2020, Japan's conventional hybrid vehicles accounted for 19.6% of the total industry, the United States accounted for 3.1%, while the domestic proportion was only 1%.

This year, the rapid attack of local hybrids is also releasing new signals: since we are lagging behind in this field, we must catch up with the acceleration of take-off!

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