Back in March this year, at the 2024 China Electric Vehicle 100 Forum, Wang Chuanfu, President of BYD, made a prediction on the penetration rate of new energy vehicles this year, saying that the penetration rate of new energy vehicles is about to exceed 50%, and the future may be more than that.
At the time, many people thought that this was premature, and perhaps it would be seen by the end of the year. But I didn't expect that less than one month had passed, and Wang Chuanfu's prophecy had come true.
According to the data of the car market released by the Passenger Association from April 1 to 14, the retail sales of new energy vehicles in the market were 260,000, a significant increase of 32% over the same period last year, and the specific performance was that the retail sales of new energy passenger vehicles in China accounted for 50.39%, which means that new energy vehicles have become the mainstream, and people who buy fuel vehicles have officially become a minority. This is undoubtedly a historic moment for China's auto market.
Seeing this, many netizens sighed that BYD was able to become a leader in new energy vehicles, undoubtedly thanks to Wang Chuanfu's forward-looking layout.
Indeed, when the penetration rate of new energy vehicles was only 1%, BYD, under the leadership of Wang Chuanfu, resolutely devoted itself to the research and development of new energy vehicles, as it said at the 5 million new energy vehicle off-line ceremony of BYD last year, "From 2017 to 2019, BYD's profits have declined sharply for three consecutive years, especially by 2019, the net profit is only 1.6 billion." But in terms of R&D, we still gritted our teeth and invested 8.4 billion that year. Many people laugh at us that we are burning money. ”
However, in the field of new energy, BYD has built a technical moat with the spirit of "not hitting the south wall and not looking back", and has ushered in today's highlight moment.
As many netizens said, the fast running of the train depends on the leader! The vision and height of the head of the car company, as well as the choice at the critical moment, directly affect the subsequent development of the enterprise.
It is worth mentioning that the "Prophetic Emperor" Wang Chuanfu also made such a prediction, that is, at the 2023 financial report investor communication conference held by BYD, he said that in the next three to five years, the market share of joint venture brands will be significantly reduced from the current 40% to 10%, and 30% of them will be filled by Chinese brands.
In view of Wang Chuanfu's accurate prediction of 50% of the penetration rate of new energy vehicles, everyone is more optimistic about the remaining 10% of the joint venture.
Judging from the competition pattern of the auto market in the first quarter of 2024, joint venture car companies account for six of the top ten car companies, which means that the market share of joint ventures has indeed been eaten up a lot in recent years, but its basic market is still there. And then it depends on how the independent brand impacts the basic plate of the joint venture brand.
For example, BYD launched a series of glory models some time ago, which is a round of dimensionality reduction blow to joint venture car companies, and recently BYD has intensively launched new cars, such as Qin L, Seal 06, etc., undoubtedly throwing sharp knives at the joint venture. It can be seen from this that BYD's goal is very direct, that is, to eat the basic plate of the joint venture and reduce its market share to 10%.
For this, some netizens are worried that it is not a good thing for independent brands to dominate the world, because there is no competition for joint ventures, and the price of independent products is directly "heavenly". In fact, such worries are superfluous, the independent brand is pressing step by step, which will accelerate the electrification transformation of the joint venture brand, and the joint venture will definitely not see its market share of only 10%, and will definitely catch up. And then it will be the time when the competition will be more intense, and it will be more beneficial to our consumers, do you say this is the truth?