15 years ago, WANG Chuanfu, chairman and president of BYD, predicted that the future would be the world of new energy vehicles, and although the crowd laughed at him continuously, he still plunged into the new energy market. To this day, no one can laugh anymore. Many traditional car companies are even more frowning and eager to seek innovation. Although electrification is the trend of the times, what many people did not expect was that BYD announced in March this year that it would completely stop production of fuel vehicles and focus on electric vehicles in the future.
Coincidentally, Weipai also completely abandoned the production of fuel vehicles, and only the hybrid cars of the coffee series were left, but the status quo of the rear car was not optimistic, which may bring new enlightenment to BYD.
Is the Wei brand after discarding pure fuel vehicles a strategic mistake?
In 2020, Weipai sold a total of 78,500 vehicles, in 2021, Weipai sold only 58,300 vehicles, Weipai sold a total of 5,089 vehicles in January this year, 4,432 vehicles in February, and 4,475 vehicles in March, it is obvious that Weipai is taking a downward road with no end in sight. The main reason for Weipai's current situation is that Weipai has lost its unique cultural heritage and inheritance, resulting in a continuous decline in its brand value. Although the situation between BYD and Weipai is very different, the two also abandon the traditional fuel vehicle and focus on new energy, and the encounter of Weipai may be able to sound a wake-up call for BYD that gave up fuel vehicles early.
What was the reason for BYD's early change of track?
In fact, the fundamental reason for BYD's suspension of fuel vehicles is that the competitiveness of fuel vehicles is not high and they cannot make ends meet, and the suspension of production will help stop losses and make more space for new energy vehicles. In 2021, BYD will sell 720052 passenger cars, of which 593745 electric vehicles will be sold, accounting for 82.46%; fuel vehicles will sell 126307, accounting for 17.54%, and this year, BYD passenger cars will sell a total of 287532 units between January and March, of which 284737 electric vehicles will be sold, accounting for more than 99%; 2795 fuel vehicles, accounting for less than 1%. Moreover, the number of UNdelivered byD new energy vehicles has also been climbing, and it is also reasonable to reroute fuel vehicle factories to achieve greater profits in new energy. No car company is willing to give up the market, there is money but do not earn, such as Mercedes-Benz, BMW, Audi, which are highly sought after in the fuel vehicle market brands naturally will not, but when the sales of their fuel vehicles collapse like BYD, they will transform. But is BYD's decision to abandon the fuel vehicle market so early that it is foolproof?
Wei Pai's lesson is not in vain, where does BYD go?
Although BYD is in a relatively head position in terms of batteries, it seems unwise to easily abandon the radical way of fuel vehicles. As the most core technology of new energy vehicles, BYD is only in a relatively leading position in the field of batteries, but this leading trend is easy to be surpassed. For example, its proud lithium iron phosphate battery and blade battery are theoretically inferior to the bone battery hit by the Dongfeng E70, and the cost is more expensive and less efficient than the battery-free CTC technology of the zero-run car. If BYD can't always maintain its leading position, then abandoning fuel vehicles and embracing new energy vehicles that do not allow users to really save money will really have the risk of running out of money, and this lesson of Wei Brand may one day be deeply experienced by BYD.
BYD's "desperate bet" to drive to the new energy track, such courage is worth encouraging, but it is too reckless to completely cut off its back road, the cost of new energy vehicles will increase in the future, and considering the long-term trend of new energy vehicle subsidies and withdrawal, in this context, how BYD achieves sustained profitability in the future will also become a reality test.
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