On April 3, Byd Company Limited(002594) 's announcement on the shutdown of fuel vehicles triggered a severe shock in the automotive industry. In the "instructions on stopping the production of fuel vehicles" officially released by Byd Company Limited(002594) said that according to the needs of the company's strategic development, Byd Company Limited(002594) will stop the production of fuel vehicles from March 2022. This not only makes it the first traditional car enterprise in China to announce the cessation of fuel vehicle business, but also the first car enterprise in the world to officially announce the cessation of fuel vehicle production.
According to incomplete statistics by the reporter of Securities Daily, except for Byd Company Limited(002594) , most of the time points for Chinese auto enterprises to stop selling fuel vehicles are concentrated in 2025. For example, BAIC and Chang'an auto enterprises plan to fully change lanes of electric vehicles in 2025. Overseas auto companies are relatively conservative in stopping the sale of fuel vehicles, which is generally delayed to about 2030.
The reporter also observed that many countries other than auto enterprises have also released a timetable for the prohibition of fuel vehicles. Among them, Norway announced that it would ban the sale of traditional fuel vehicles in 2025; California, Germany, the Netherlands and India announced a ban on the sale of traditional fuel vehicles in 2030; Britain and France, on the other hand, postponed the sale of traditional fuel vehicles for ten years and planned to ban them in 2040.
Byd Company Limited(002594) take the lead in completely stopping fuel vehicles
In 2021, China Shanxi Guoxin Energy Corporation Limited(600617) automobile market will show explosive growth, with annual sales reaching 3.52 million vehicles, a year-on-year increase of 16%. This year has also become a year for Byd Company Limited(002594) to "turn over" in the field of new energy - the sales volume of its new energy vehicles exceeded that of fuel vehicles for the first time. After Byd Company Limited(002594) continuously launched blade batteries and DM-I system, it quickly triggered positive feedback in the market. In that year, its sales of new energy vehicles reached Suzhou Douson Drilling&Production Equipment Co.Ltd(603800) , an increase of 218% year-on-year, accounting for 82% of the overall sales; The sales volume of fuel vehicles was 136300, a year-on-year decrease of 43%, accounting for 18% of the overall sales volume.
In 2022, the proportion of fuel vehicles in Byd Company Limited(002594) overall automobile business continues to decrease. On April 3, Byd Company Limited(002594) released the production and sales data, which showed that the sales volume of fuel vehicles in the first quarter was 5000, a year-on-year decrease of 89.78%, accounting for only 1.73% of the overall sales volume; The sales volume of new energy vehicles was 286300, a year-on-year increase of 423%. It can be seen that in terms of the distribution and demand of Byd Company Limited(002594) product market, new energy vehicles have completely shown a strong rising momentum.
Gao Yunpeng, director of China Shanxi Guoxin Energy Corporation Limited(600617) automobile industry innovation alliance, said in an interview with the reporter of Securities Daily that Byd Company Limited(002594) dares to take the lead in stopping the fuel vehicle business because of the obvious growth of new energy vehicle business, the leading technology and the gradual decline of the proportion of traditional fuel vehicle business. "Before that, the world's major automobile manufacturers had already made a long-term plan to achieve decarbonization, but Byd Company Limited(002594) chose to fulfill its commitment in advance. Byd Company Limited(002594) also has the core technologies of the whole industry chain, such as battery, motor, electronic control and chip. Its decision is foreboding." Gao Yunpeng said.
" Byd Company Limited(002594) adopts plug-in hybrid models to compete for alternative fuel models, which will achieve good consumption upgrading." Cui Dongshu, Secretary General of the national passenger car market information joint committee, told the reporter of Securities Daily that the technological breakthrough of blade battery and DMI hybrid technology, coupled with its strong industrial capacity of vertical integration, has strong unique advantages.
According to the latest data, in March 2022, the sales volume of Byd Company Limited(002594) passenger cars reached 1043380, reaching a new high and breaking the monthly sales record of Shanxi Guoxin Energy Corporation Limited(600617) cars in China. At the performance exchange meeting held on March 30, Byd Company Limited(002594) proposed that the overall sales target of the company's automobile business in 2022 was 1.5 million to 2 million vehicles.
However, it should be pointed out that the rising cost of raw materials and the increase in R & D investment have always been the haze entrenched in the head of mainstream auto enterprises.
According to the financial report, Byd Company Limited(002594) 2021's automobile business revenue was 112489 billion yuan, a year-on-year increase of 33.93%; R & D investment was 10.627 billion yuan, a year-on-year increase of 24.2%; 40400 R & D personnel, with a year-on-year increase of 31.52%; However, the gross profit margin of automobile business decreased by 17.39% year-on-year, and the net profit also decreased by 28.08% year-on-year to 3.045 billion yuan.
In view of the phenomenon of "increasing income without increasing profit", Byd Company Limited(002594) explained that the price fluctuation of main raw materials directly affects the production cost of main business, and then has a certain impact on the operating performance. Recently, Wang Chuanfu, chairman and President of Byd Company Limited(002594) also said at the hundred people conference forum that affected by the triple pressure of uncertain factors such as shrinking demand, weakening supply impact and expectation, geopolitical conflict and so on, the soaring prices of raw materials and bulk commodities have also become an important factor affecting Byd Company Limited(002594) profits.
transformation of new energy contributes to market value growth
In recent years, the vigorous development momentum of the new forces of pure electric vehicle manufacturing has been obvious to all in the capital market. Tesla, the leader, has a market value of US $1.13 trillion, which is even higher than the sum of six old car companies: Toyota, Volkswagen, GM, Hyundai, Ford and BMW; The total market value of Wei Xiaoli, a new force in China's car making, once crossed the $100 billion mark.
A securities analyst in the automotive industry, who asked not to be named, told reporters that the valuation evaluation given by the capital market to traditional automobile enterprises and new forces of automobile manufacturing enterprises is not consistent, even more like two industries. "For example, Byd Company Limited(002594) is generally composed of three parts: Battery photovoltaic, mobile phone business and automobile business. In the automobile business, we used to calculate fuel vehicles and new energy vehicles separately. New energy can give 100 times the valuation, while the fuel roof can give 10 times more."
"It can be said that the fuel vehicle business has dragged down the market valuation level of Byd Company Limited(002594) to a certain extent. Now it has decisively cut off this business and made every effort to produce and sell new energy models. In the long run, it is significantly better than the improvement of the company's valuation." The analyst told reporters.
Byd Company Limited(002594) became the first traditional car company in the world to announce the shutdown of fuel vehicles. Similarly, most mainstream car companies around the world have already accelerated their transformation to new energy. So far, many car companies have announced plans to stop selling fuel vehicles.
As early as October 2017, Chongqing Changan Automobile Company Limited(000625) announced the "Shangri La plan". According to the plan, Chongqing Changan Automobile Company Limited(000625) will invest more than 100 billion yuan in the field of new energy in the next eight years, and will completely stop selling traditional fuel vehicles by 2025; In 2018, BAIC group announced that it expected to completely stop the sales of fuel vehicles by 2025, and planned to take the lead in completely stopping the sales of traditional fuel passenger vehicles of its own brand in Beijing by 2020.
Among foreign automobile enterprises, Volkswagen Group is one of the multinational automobile groups that have made early efforts in electrification. In 2021, Volkswagen and Audi announced that they would stop the research and development of internal combustion engines. By 2030, Audi would stop selling fuel vehicles, while Volkswagen brand announced that it would stop selling fuel vehicles in the European market in 20 Toyota plans to stop selling fuel vehicles in China, North America and Europe in 2030. Meanwhile, its luxury brand Lexus will be transformed into a pure electric brand in 2035.
In addition to the above car companies, including Mercedes Benz, BMW, Honda, general motors, Ford, Jaguar and Volvo have announced that they will stop selling fuel vehicles in the future. Among them, GM plans to stop selling fuel vehicles in 20 Ford announced that by the middle of 2026, all passenger car series in Europe will achieve zero emissions and will be fully electric by 2030. In addition, traditional luxury brands such as Porsche, Bentley, Maserati and Aston Martin have also changed lanes to layout the new energy vehicle market in recent years.
