Stop production of fuel vehicles, Byd Company Limited(002594) strided ahead. On the first day of the Qingming Festival holiday, Byd Company Limited(002594) announced in a high profile that the production of fuel vehicles would be stopped from March. In the future, Byd Company Limited(002594) will focus on pure electric and plug-in hybrid vehicle business.
Letting go decisively does not mean that the choice is easy. Put an end to the production of fuel vehicles and make rapid progress in the field of new energy vehicles Byd Company Limited(002594) curve overtaking intention is obvious, but it is still unknown whether the electric vehicle can shoulder the heavy responsibility at this stage, at least its performance in the financial statements is not good enough.
In the past year, the sales volume of Byd Company Limited(002594) new energy vehicles exceeded Shanghai Pudong Development Bank Co.Ltd(600000) , three times that of 2020. This sales volume ranks first in the Shanxi Guoxin Energy Corporation Limited(600617) automobile market. However, Byd Company Limited(002594) is still mixed under the sales figures. On one side, the fuel car was on the road, and the electric car finally got out of the way. On the other side, the sales champion fell into a strange circle of increasing income without increasing profit.
The more cars sold, the more losses, and the peer Xiaopeng is facing similar problems. Sales champion and loss king are two contradictory titles described by the media as Xiao Peng.
Byd Company Limited(002594) has a large sector, so there are many places to spend money. From raw materials to semiconductors, sales are rising and investment is also rising. Many subdivided fields in the upstream and downstream of the new energy vehicle industry chain are in their own hands. There is no middleman to earn the price difference. Byd Company Limited(002594) has the initiative, but it is difficult to be affected by the price fluctuation of raw materials.
In addition to external factors, Byd Company Limited(002594) has made great efforts in internal R & D investment. In 2021 Byd Company Limited(002594) R & D investment exceeded 10 billion yuan for the first time, almost equal to the sum of R & D amount of Geely and great wall.
In Xiaopeng’s loss story, R & D has also become the top priority. Last year, Xiaopeng automobile had a net loss of 4.86 billion yuan, becoming the largest loss among “Wei Xiaoli”. The R & D investment is 4.11 billion yuan, which is not as good as Weilai, but far more than ideal.
No matter where the money is spent, new energy vehicles have not been able to get rid of the fate of “burning money”. When an enterprise gets a higher volume and is based on the expansion of losses, the expanded sales volume is not a really positive signal. At least, it is a huge test for the sustainable development ability of automobile enterprises.
Nowadays, in the new energy vehicle market, foreign brands, traditional vehicle enterprises and new forces of vehicle manufacturing are in a scuffle, and the enterprises that can break through must occupy an advantage in the core technology field Byd Company Limited(002594) knocked down a domino, but everything about the era of new energy vehicles is still full of unknowns.
With the soaring oil price, electric vehicles seem to be pushed forward by history. In the eyes of contemporary consumers, with the maturity of technology and the enrichment of products, new energy vehicles will gradually enter thousands of households.
Byd Company Limited(002594) shutdown “a small step” may be a big step in the future. In addition to the huge cost of investment and technology in the supply chain, it is not only the long road of capital and technology that will support the continuous development of enterprises, but also the long road of capital and technology.
