When global auto companies are still discussing when to stop production of fuel vehicles, Byd Company Limited(002594) chose to be the first to eat “crab” Byd Company Limited(002594) recently announced that the production of fuel vehicles has been stopped since March this year. After the announcement was issued, it immediately triggered a heated discussion and was listed on the hot search list of social platforms. Facing the arrival of the era of new energy vehicles, all vehicle enterprises put the shutdown planning of fuel vehicles on the agenda. For traditional auto enterprises, only by completing the transformation as soon as possible can they seize the market as soon as possible. The Byd Company Limited(002594) shutdown of fuel vehicles seems to be sudden. In fact, this independent vehicle enterprise starting with batteries has laid out the new energy vehicle industry chain for many years, building a springboard for its transformation to a new energy vehicle enterprise.
speed up transformation
An announcement made Byd Company Limited(002594) become the first traditional car company in the world to stop production of fuel vehicles. The announcement shows that according to the needs of Byd Company Limited(002594) strategic development, the whole vehicle production of fuel vehicles has been stopped in March this year. In the future, Byd Company Limited(002594) in the automotive sector will focus on EV pure electric and DM plug-in hybrid business Byd Company Limited(002594) relevant people said that they would continue to provide perfect service, after-sales guarantee and full life cycle spare parts supply for existing fuel vehicle customers to ensure worry free travel.
As for this adjustment, Byd Company Limited(002594) explained that the strategic adjustment focuses on the national dual carbon strategic goal, adheres to the new development concept of innovation and green, and leads the reform of the automobile industry with the driving force of scientific and technological innovation; Promote sustainable social development with a green and low-carbon cycle. However, in the view of insiders, behind the comprehensive transformation of Byd Company Limited(002594) new energy vehicle enterprises, its sales structure has completed the transition to new energy vehicle products, which has also become one of the reasons why Byd Company Limited(002594) chose to make official announcement at this time.
In 1995, it became the second largest manufacturer of battery in the world; In 2014, Byd Company Limited(002594) began to comprehensively transform to the field of new energy vehicles; The “7 + 4” whole market strategy for new energy vehicles was released in 2015. After years of market layout, Byd Company Limited(002594) has gained a firm foothold in the new energy vehicle market and realized the planning of pure electric and plug-in hybrid.
According to the data, in March this year, the output of Byd Company Limited(002594) new energy vehicles was 106600, a year-on-year increase of 416.96%; The sales volume was 104800, with a year-on-year increase of 422.97%. Among them, the output of pure electric passenger vehicles was 54600, a year-on-year increase of 266.2%; The sales volume was 53600, a year-on-year increase of 271.05%. Meanwhile, in March this year, the output of Byd Company Limited(002594) plug-in hybrid vehicles was 51400, with a year-on-year increase of 853.37%; The sales volume was 50600, with a year-on-year increase of 857.4%. The production and sales of Byd Company Limited(002594) ‘s fuel vehicles have returned to zero.
Wang Chuanfu, chairman and President of Byd Company Limited(002594) group, said that if pure electric vehicles focus on solving the need for additional purchase, plug-in hybrid vehicles can effectively solve the demand for first purchase and replacement of more families, forming an obvious substitution effect on the huge stock of fuel vehicle market. 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.
planning years
In addition to the adjustment of product sales structure, Byd Company Limited(002594) also made sufficient preparations for the shutdown of fuel vehicles.
In June 2021, a summary of Byd Company Limited(002594) internal communication meeting showed that when asked whether “the company’s fuel vehicles will be completely replaced by DMI and DMP in the future”, Byd Company Limited(002594) replied that “the internal sales volume of fuel vehicles this year is expected to be about 150000, and the planning of fuel vehicles in the future has also been stopped, and they will be completely replaced as soon as next year”. However, in response to the above meeting minutes, at that time, Byd Company Limited(002594) responded that “there is no such plan at present, there is demand from the market and consumers, and there is demand from partner dealers”.
However, in November of the same year, Byd Company Limited(002594) as the only Chinese auto enterprise, signed a letter of commitment with five auto enterprises: Volvo, Ford, general motors, Mercedes Benz and Jaguar Land Rover to stop the production of fossil fuel vehicles worldwide by 2040. Yan Jinghui, member of the expert committee of China Automobile Circulation Association, said that Byd Company Limited(002594) made the decision to stop production of fuel vehicles in advance, on the one hand, it is optimistic about China Shanxi Guoxin Energy Corporation Limited(600617) automobile market, and its product sales structure has completed the transition. On the other hand, the layout of Byd Company Limited(002594) in the whole industrial chain over the years has provided sufficient support for its transformation.
At present, Byd Company Limited(002594) is a car enterprise that simultaneously master the core technologies of the whole industry chain of new energy vehicles such as batteries, motors, electronic controls and chips. In terms of semiconductor business, in 200, Byd Company Limited(002594) acquired Ningbo Zhongwei semiconductor. After more than ten years of technological precipitation, Byd Company Limited(002594) created a vertical operation mode (IDM) integrating chip design, wafer manufacturing, packaging test and production. In the field of new energy, Byd Company Limited(002594) distributes lithium resources from the source, establishes lithium battery factories in Qinghai, Shenzhen, Xi’an, Chongqing, Changsha, Guiyang and other places, and establishes a number of subsidiaries through self construction / acquisition to realize vertical expansion. Now its business covers power batteries, pack process, battery positive and negative electrodes and battery recycling. In addition to self-sufficiency, Byd Company Limited(002594) blade batteries have been supplied to foreign countries since last year.
After mastering the upstream and downstream of the industrial chain in their own hands, Byd Company Limited(002594) has formed a product matrix dominated by four popular products of Han and Qin plus DM-I, song plus DM-I and Tang DM-I, supplemented by other products such as dolphin and yuan plus, gradually replacing the fuel vehicle product line.
With Byd Company Limited(002594) turning around in an all-round way, traditional car enterprises and new forces will fight more fiercely. According to the data, Tesla sold 310000 vehicles worldwide in the first quarter of this year, and Byd Company Limited(002594) new energy vehicles sold 286300 vehicles. Industry insiders said that in the global environment of promoting the concept of low-carbon and green travel, the time for car companies to stop fuel vehicles is constantly advanced, and the overall situation that new energy vehicles will become the dominant vehicle market in the future is set.
