There is no need for fuel vehicles to exist, and BYD's 7 million new energy vehicles are off the assembly line

On May 19, 2021, BYD's 1 million new energy vehicles rolled off the assembly line, and if you count from the sales of the first new energy vehicle in 2008, BYD's first million sales achievement was achieved, and it took 13 years. On March 25, 2024, BYD's 7,000,000th new energy vehicle rolled off the assembly line at its Jinan plant, setting a new sales milestone. From 1 million to 7 million, BYD took less than 3 years, and China's speed once again set a new world record.

In January and February this year, Geely and Chery's wholesale sales surpassed BYD, which seemed to break BYD's "one dominant" pattern, but looking at the proportion of sales, Geely and Chery are still dominated by fuel vehicles, and it is still difficult to shake BYD's leading position in the field of new energy. Although the current market share of fuel vehicles is still more than 50%, the shrinkage of the market is visible to the naked eye. Since 2021, the penetration rate of new energy has increased month by month, all the way from less than 20% to 40% by the end of 2023. Under the advantages of the other, it is not difficult to see the future development trend - it is a matter of three or five years for fuel vehicles to withdraw from the stage of history.

The market for fuel vehicles is gradually shrinking, and new energy vehicles are gradually rising and gradually replaced. After recognizing this reality, and then looking at the milestone of BYD's 7 million new energy vehicles, the gold content is even higher than we imagined. We seem to have gotten used to BYD's good news, 3 million, 5 million, 6 million...... In fact, our domestic brands, in addition to BYD, only GAC Aion, have achieved the achievement of one million vehicles, and the time is December 28, 2023.

Of course, traditional car companies such as Geely, Chery, and Changan are also working hard to carry out new energy transformation, and new car-making forces such as Ideal, Xiaomi, Xiaopeng, and Weilai have also performed well. It should also be a matter of time before the "Million Club" enters. But if you talk about catching up with BYD...... There is indeed a long way to go.

Today's BYD has grown into a behemoth, not only in the field of new energy, but also shouldering the mission of subverting fuel vehicles. In the past three years, the penetration rate of new energy has been rising, and independent brands have risen rapidly, among which BYD has indeed contributed a lot. At the beginning of this year, BYD launched the Glory version of the model, and the 79,800 Qin PLUS DM-i started a war of annihilation against the joint venture fuel vehicle. Japanese brands such as Nissan and Honda have announced production cuts.

This is also another dividend brought by sales - scale effect. High sales will infinitely dilute R&D costs, coupled with BYD's advantages in the whole industry chain, all of them have the confidence that electricity is lower than oil. BYD has pricing power below 200,000, it is indeed not just talking, when the 79,800 Qin PLUS DM-i comes out, the entire market needs to deal with it seriously.

In the domestic market, BYD's market share has basically reached the limit, basically every 3 new energy vehicles sold, one of which is BYD, has been firmly ranked as the first brand of new energy. However, in overseas markets, BYD still has a lot of growth potential, and it will even become a major growth point in 2024.

In 2023, BYD has successfully ranked among the top 10 in global car sales, ranking ninth, and the top 8 car companies are all traditional car brands based on fuel vehicles. 7 million vehicles is indeed a milestone, but we prefer to see that in this wave of new energy, BYD can occupy a higher position.