Why was BYD able to break out in a short period of time?

Smart car

2024-04-22 18:03Posted on the official account of Shanghai Zhixuanche

BYD has become a veritable "money printing factory".

According to the financial report, BYD's net profit in 2023 will be 30.041 billion yuan, a year-on-year increase of 80.72%, which means that it will make a net profit of more than 8,000 yuan per day, becoming the most profitable Chinese car company.

In 2023, the gross profit margin of BYD Auto and related products will also rise, and the performance of 23.02% has surpassed Tesla (18.2%) and Ideal (21.5%).

BYD has become one of the most unconventional but also the most successful new energy car companies among all forces. Becoming a top-notch requires various conditions, but from the perspective of objective laws, the success of people is inseparable from the preparation of accumulation.

Rational analysis, BYD did not rank in the first echelon in the era of fuel vehicles. Even after decades of development, BYD, which relies on fuel vehicles, sold less than 500,000 units in 2020.

BYD's sales leap is due to new energy models, and its sales soared to 730,000 units, 1.89 million units, and 3.02 million units from 2021 to 2023, respectively.

There are so many traditional manufacturers in China, why can only BYD achieve an outbreak in a short period of time?

Although it is from a traditional factory, BYD is an early bird in the field of new energy.

BYD made a fortune in the battery industry, and around 2000, it became the first Chinese lithium-ion battery supplier of Motorola and Nokia.

Subsequently, BYD acquired Xi'an Qinchuan Automobile Co., Ltd. in 2003 and entered the field of car manufacturing, and its first model, the F3, quickly occupied the market.

In the following years, BYD launched new energy models such as F3 DM and e6, and hybrid DM technology has been continuously upgraded since 2008, and has now become a "trump card" of BYD.

Lithium battery research and development, the old industry also feeds BYD's new energy models, and the accumulation of technology over the years has made the "blade battery" show strong competitiveness and become another "trump card".

BYD is currently the world's leading supplier of new energy batteries, second only to CATL in terms of installed capacity in 2023, and Toyota, Hongqi, Skyworth, etc. are its customers.

The biggest difference from other traditional manufacturers is BYD's courage and determination to "break its wrist", and it announced as early as March 2022 that it would completely stop producing fuel vehicles.

This momentum has allowed BYD to completely establish a new energy image, and like the new forces, it has become a pure new energy vehicle company, and has established its position as the first choice for new energy in the hearts of users.

In 2023, BYD will rank among the top 10 car companies in the world and win the double champion of China and global new energy.

Even at the top of the rankings, BYD still maintains a down-to-earth attitude.

For example, Wang Chuanfu recently appeared in Pingyi County, Linyi City, to conduct research in the countryside, and there were no "people" entourage around, and he did not have a little shelf, and he personally delivered the car to the owners of Denza and Formula Leopard.

In fact, from the above phenomena, it can be seen that the current rim is very "rolling". As the boss, BYD not only provides lower prices, but also fills up the sense of service, which is commendable.

And this steadfastness is the same from top to bottom.

The author previously visited a number of stores in the middle of 2022, when BYD's supply was most in short supply, and did not find a single user who neglected the sales of users due to hot sales, but the service of each sales was very patient and meticulous.

BYD's popularity has continued from 2021 to 2024.

In the first quarter of this year, BYD continued to lead with 626,300 units, and in March, it sold more than 300,000 units again, and no car company can shake its leading position.

This time, in addition to relying on the advantages of the three-electric system, BYD's upward breakthrough and outward expansion layout have played a role.

Recently, the "Fanghua" formula leopard car spring conference was held in Shenzhen, released a number of SUV models, including the world premiere of the hard-core flagship Leopard 8, the Leopard 3 concept car SUPER 3 debut, and the concept sports car SUPER 9 made a simultaneous appearance, which together with the Leopard 5 formed the product matrix of the formula leopard hard-core SUV and sports car.

At the level of upward breakthrough, BYD also has two major brands: Yangwang and Denza.

The sales volume of the million-dollar luxury car U8 exceeded 5,000 units in 132 days, and the Denza D9, with an average order price of more than 400,000 yuan, has become the top MPV seller for many months, and ranks first in the one-year value retention rate of new energy MPVs.

In other words, BYD's upward breakthrough has borne fruit.

It is worth noting that looking up to the U8 equipped with black technologies such as in-situ U-turn, Yi Sifang, and Yun Yuan may benefit other BYD brands, then the advantages of related models in the same class of cars will be self-evident.

In the process of breaking through upward, BYD also began to make more attempts.

Formula Leopard has opened up the hard-core off-road SUV and convertible sports car track for BYD, Denza has given BYD a ticket to participate in the MPV market competition, and Song L has allowed BYD to touch the field of performance hunting SUV.

In addition to expanding the field of high-end cars, BYD's advantages in the field of scooters have gradually been brought into play.

For example, BYD's small car Seagull has replaced Wuling Hongguang MINIEV as a new generation of mobility car.

The BYD Seagull quickly occupied the market after its launch in 2023, and sold 34,830 units in March this year, ranking first in the monthly "double" sales of A00-class models and pure electric sedans.

Of course, BYD has also driven the development of its own brand in the process of exploring more model categories. For example, BYD Han made its own brand take the lead in the field of medium and large sedans for the first time, and Yangwang U8 set a sales record for domestic million-dollar luxury cars.

From January to March this year, BYD passenger cars exported 36,174, 23,291 and 38,434 respectively, and the total export sales in the first quarter were 97,899, a year-on-year increase of 152%.

In the face of the large increase in overseas sales, the media broke the news that BYD plans to put 7 ro-ro ships into operation in the future. This plan is currently being accelerated.

On January 15 this year, BYD launched the Pioneer No. 1 car ro-ro transport ship, realizing the "self-transport" mode, and has successfully returned to the sea, and in March this year, BYD also held a groundbreaking ceremony for the new 9,200-space car ro-ro transport ship.

BYD's scale and efficiency are still improving. According to the latest news, BYD will invest in Brazil, Thailand, Hungary and other overseas regions to build factories, and accelerate the construction of overseas channel networks.

It is foreseeable that BYD's road to the sea will also open the "snowball" mode.

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