Byd Company Limited(002594) stop the production of fuel vehicles.
“If I choose an oil vehicle, I will consider Geely and great wall instead of Byd Company Limited(002594) , but if I choose a new energy vehicle, I prefer Byd Company Limited(002594) .” Byd Company Limited(002594) Han EV owner Mr. Li told the reporter of shell finance.
On April 3, Byd Company Limited(002594) officials announced the official shutdown of fuel vehicles, and the era of new energy vehicles is coming. For Byd Company Limited(002594) this independent brand, it may be one of the best choices for brand upgrading to put down fuel vehicles and concentrate on electric vehicles and hybrid vehicles.
According to the survey by the reporter of shell finance and economics, the total sales volume of cars in Byd Company Limited(002594) 1-february was 185600, of which the sales volume of new energy vehicles reached 180500, and the fuel vehicles have tended to be “invisible” in the product structure of Byd Company Limited(002594) and in terms of price, the price difference between the fuel vehicles of Song Dynasty, which accounted for 3 / 5 of the sales volume of fuel vehicles, and the price of song new energy vehicles is nearly 1 / 3, just over 100000 yuan. The brand power is also slightly insufficient.
Zhang Xiang, President of the New Energy Vehicle Technology Research Institute of Jiangxi new energy technology vocational college, told shell finance reporters that Byd Company Limited(002594) choosing to give up fuel vehicles and focus on new energy vehicles is the epitome of the development trend of the automobile industry, and it is an important step for the enterprise itself to transform its brand upward and into a science and technology company.
Byd Company Limited(002594) discontinued fuel vehicles is the confidence given by DM-I technology
“Great Wall focuses on off-road, Lingke’s performance and Chang’an’s cost performance. What’s the Byd Company Limited(002594) fuel car? Anyway, I can’t think of it for a while. After all, I haven’t known much about Byd Company Limited(002594) ‘s car since 20 years ago, except reverse research and development of corolla.” Mr. Xu, the owner of two Byd Company Limited(002594) electric vehicles, told the reporter of shell finance.
Mr. Li said that when buying electric vehicles, users know Byd Company Limited(002594) , but when buying oil vehicles, he doesn’t know much about Byd Company Limited(002594) ‘s unique advantages in fuel vehicle technology.
There are also different opinions among the industry on the reasons for Byd Company Limited(002594) shutdown of fuel vehicles: profit margin, double points, production capacity, brand upward and scientific and technological transformation are the focus of attention.
Zhang Hong, Secretary General of the new energy vehicles branch of the Automobile Circulation Association, introduced to the reporter of shell finance and economics that at present, the technical advantages of Byd Company Limited(002594) are concentrated in the field of new energy vehicles. The DM-I hybrid technology released in 2021 is deeply loved by users and has been in short supply for a long time. The decision to stop producing fuel vehicles is not surprising. DM-I can replace fuel vehicles to some extent, but its brand effect is far better than that of fuel vehicles. Zhang Xiang mentioned that putting down the production of fuel vehicles and focusing on new energy vehicles made Byd Company Limited(002594) the attribute of the technology company more and more pure.
According to the data, Byd Company Limited(002594) the sales of fuel vehicles began to decline rapidly, just when DM-I models were launched one after another in 2021. According to the data of Byd Company Limited(002594) financial report, in 2020, the sales volume of Byd Company Limited(002594) fuel vehicles was 237300 and the sales volume of new energy vehicles was 189700. Fuel vehicles remained the “main force” of the brand, and the sales volume increased by about 2% in that year. However, in 2021, the sales volume of Byd Company Limited(002594) fuel vehicles was only 136348, and the sales volume of new energy vehicles reached 593745, with a year-on-year increase of 200%. Fuel vehicles declined in 2021, and the strength of DM-I can also be seen from the sales performance.
In December 2021, Byd Company Limited(002594) sold 97990 vehicles. Among them, the sales volume of new energy vehicles reached 92823, accounting for 95% of the total sales volume, including 48317 EV Models and 44506 DM hybrid vehicles. The sales volume of fuel vehicles is only 5167, accounting for about 5%.
From January to February 2022, the total sales volume of Byd Company Limited(002594) vehicles was 185600, including 180500 new energy vehicles; In March, Byd Company Limited(002594) achieved sales of 104900 vehicles, including 104300 new energy vehicles. Fuel vehicles have become invisible in the product architecture of Byd Company Limited(002594) .
A former employee of Byd Company Limited(002594) told the reporter of shell finance that the fuel brand was “lagging behind” in the development of Byd Company Limited(002594) . He mentioned that Byd Company Limited(002594) ‘s engine technology has not been iterated for many years, and the oil vehicle lacks competitiveness. It has the same appearance as the new energy brand, but the price is half of that of the new energy model, which makes consumers feel that they “spend twice as much money on the battery”. “The power of oil truck products cannot go up, and the new energy brand has been pulled back. Others are brands that promote each other, Byd Company Limited(002594) oil truck has become a deduction item instead.” The interviewee told the reporter of shell finance and economics, “in those days, the fuel version of Byd Company Limited(002594) Tang could be bought for 130000 yuan, and the pure electric version would cost 260000 yuan. The owners who bought electric cars were uncomfortable with what they thought, didn’t they?”
;, Byd Company Limited(002594) what’s the next step
Why does Byd Company Limited(002594) not continue to promote the production of fuel vehicles? In addition to the substitution effect of DM-I, capacity, profit and brand improvement may be potential reasons.
At present, Byd Company Limited(002594) new energy vehicles are in hot sales, and the collection cycle of hybrid models is long. Shell finance reporter learned from the sales manager of a Byd Company Limited(002594) 4s store in the west of Beijing that at present, there are no hybrid models in the brand store, only a few pure electric vehicles in Qin plus EV, and the collection cycle of multiple models of the brand is about 3 months. Due to the short supply, some consumers said on the social platform that their waiting time for the car has reached 6 months.
“I have been selling cars in Byd Company Limited(002594) for many years. I can clearly feel that in recent years, Byd Company Limited(002594) ‘s hybrid products have become more and more recognized by consumers. They are no longer as controversial as fuel vehicles in the past.”
According to the financial report of Byd Company Limited(002594) 2021, the production capacity of passenger cars and commercial vehicles in the factory of the enterprise is Shanghai Pudong Development Bank Co.Ltd(600000) and 8500 respectively, and its output has reached 597100 and 10000 respectively. It can be seen that the Byd Company Limited(002594) plant has been in full load or even overload operation. At present, the enterprise is actively preparing for production in Changzhou, Jiangsu, Fuzhou, Jiangxi, Zhengzhou, Henan and other places. The delivery volume is expected to reach 1.5 million vehicles in 2022. Tilting the production capacity of fuel vehicles to new energy vehicles can also better complete the delivery of existing orders.
In terms of price, the price of Byd Company Limited(002594) new energy model is also higher than that of fuel version model. Take the fuel version song, which is still on sale, as an example. At present, the guide price of the fuel version song plus is 115800143800 yuan, while the price of the song plus DM-I is 1528 Sieyuan Electric Co.Ltd(002028) 00 yuan. In terms of price, the hybrid model is higher than the fuel version. Zhang Xiang judged that the hybrid model can bring higher profit margin to Byd Company Limited(002594) than the fuel version.
According to Byd Company Limited(002594) latest financial report, the net profit of the enterprise in 2021 was 3.045 billion yuan, slightly lower than 4.234 billion yuan in 2020, a year-on-year decrease of 28%. Among them, the gross profit of automobile business was 17.39%, down 7.81% year-on-year. Enterprises claim that the main factor affecting the decline in gross profit is the cost of raw materials, but in the long run, it is also a good choice to choose hybrid models with higher gross profit to replace fuel vehicles and focus production capacity on the production of hybrid models.
In addition, Zhang Xiang also mentioned that under the double credit policy and increasingly stringent emission regulations and standards, Byd Company Limited(002594) facing the pressure of engine displacement, negative credit of fuel vehicles and fierce market competition, fuel vehicles may be in the situation of “losing one by selling one”.
Zhang Xiang believes that putting down the burden of fuel vehicles can transform Byd Company Limited(002594) from a traditional car enterprise to a high-tech car enterprise, and form a unified queue with Tesla, Weilai, Xiaopeng and other brands. At present, it is also a trend for traditional automobile enterprises to transform to science and technology enterprises. Brands such as GAC AIAN and Dongfeng lantu have similar genes, which makes them have greater potential in financing, listing and market value.
Zhang Hong said that the brand positioning of Byd Company Limited(002594) is more on power batteries and electric vehicles, and the fact that it is still producing fuel vehicles itself will bring some confusion to Byd Company Limited(002594) brand image. No longer producing fuel vehicles can further purify the brand image of Byd Company Limited(002594) and is conducive to the future development of Byd Company Limited(002594) new energy vehicles and the improvement of the enterprise brand.
According to the Byd Company Limited(002594) plan, in 2022, the enterprise will form a brand network with Dynasty, ocean, Tengshi and a high-end brand with a product price range of 5 Ping An Bank Co.Ltd(000001) million yuan as the matrix. With the previous “E-Net” focusing on cost performance gradually replaced by haiyang.com, Byd Company Limited(002594) seems to be taking its new energy vehicle products out of the sinking market and impacting the medium and high-end market with intelligence, safety, luxury and other elements.
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Byd Company Limited(002594) stopped selling fuel vehicles and still showed its skill in hybrid models. So pure de fuelling is still a long journey. Wang Chuanfu, chairman of the board of directors, once suggested at the electric vehicle 100 people’s meeting that “we should adhere to the” two legs “walking of pure electric and plug-in hybrid”.
Wang Chuanfu mentioned that in 2021, the market share of plug-in hybrid was as high as 50% in Europe, but only 18% in China. More than 60% of households in China are still Car Free households. Plug in hybrid can realize short-distance power consumption and long-distance oil consumption, so that the family’s first car can be powered by oil. At present, there are more and more plug-in hybrid products in the market. If pure electric vehicles focus on solving the need for additional purchase, plug-in hybrid can effectively solve the first purchase and replacement demand of more families, forming an obvious substitution effect on the huge stock of fuel vehicle market.
Wang Chuanfu bluntly said that plug-in hybrid is an important path to achieve the dual carbon goal. The reform is relatively mild, which helps to stabilize the supply chain of the industrial chain and realize the smooth transition from fuel vehicles to pure electric vehicles.
At present, in addition to the brand of new forces in car manufacturing, global car companies have also focused on the transition from fuel technology to hybrid technology. In 2021, Byd Company Limited(002594) dm-i, Great Wall lemon DHT, Chang’an blue whale IDD, Chery Kunpeng DHT and other technologies made high-profile appearances one after another. Zhang Xiang also introduced that BAIC motor and Chongqing Changan Automobile Company Limited(000625) also put forward their own combustion ban plans Chongqing Changan Automobile Company Limited(000625) in the “Shangri La plan” released in 2017, it is mentioned that from 2025, the sale of traditional fuel vehicles will be stopped and the electrification of products of the whole spectrum will be realized; BAIC also plans to stop selling fuel vehicles in 2025.
Among the overseas giants, Nissan was revealed in February 2022 that it would give up the research and development of a new generation of internal combustion engines other than the U.S. market; In March 2021, Audi CEO Marcus dusman said in an interview with Frankfurt Daily: we will no longer develop new internal combustion engines, but we will still enable the existing internal combustion engines to adapt to the new emission standards; Dieter Zetsche, former CEO of Mercedes Benz, said in 2018 that by 2022, all Mercedes Benz’s traditional fuel vehicles will stop production and sale, and all models will only provide hybrid or pure electric versions. Although this plan has not been fully realized, the popular Mercedes Benz C-class medium-sized cars in China have realized the electrification scheme of all series 48V light hybrid + engine; Volvo has also formed the electrification scheme of the whole series of 48V light hybrid + engine in China.
In their plans to ban the sale of fuel vehicles, these overseas car companies mostly add traditional fuel vehicles to electrification technologies, such as 48V light hybrid and plug-in hybrid, rather than completely abandon the use of internal combustion engines.
Zhang Hong told the reporter of shell Finance: “electrification is the trend of the industry, and different strategies will be formulated according to the situation of the enterprise itself. Byd Company Limited(002594) has considerable advantages in electrification. As a traditional car enterprise, it is inevitable to take the lead in stopping the sale of fuel vehicles. In the future, the pattern change of China and even the world automobile market is also worth looking forward to.”
