Translation
Author | Roomy
Editor | Zhou Changxian
On November 16th, the 3 millionth new energy vehicle from BYD was officially rolled off the production line.
CEO Wang Chuanfu stood on the stage, elaborating on the process from 0 to 3 million cars. He said that it took BYD 13 years to produce the first 1 million new energy vehicles, followed by another year to reach the second million, and now just half a year to reach 3 million.
Roughly estimated, this means that BYD sold one car every 2 minutes on average in 2021 and increased to one car every 30 seconds in 2022, which indicates significant growth.
Although Wang spoke calmly, he had great faith in BYD achieving this milestone of 3 million new energy vehicles. He believes that it is a result of technology, products, and the times have come together.
BYD has come a long way from 0 to 3 million cars over the past 14 years. During the Auto Show in Geneva 14 years ago, Wang stated a goal, “BYD will be the world’s number one automaker by 2025”. This year, BYD surpassed Tesla in sales and became the top new energy vehicle company globally. These stories are connected by the themes of “struggle”, “changes”, and “passion”. It is a reflection of the accumulation of technology and strength to write the “acceleration” of China’s new energy industry development.
“The 3 millionth new energy vehicle is an important milestone in BYD’s development history, and is the best footnote for China to move from a big auto country to a strong auto country.”
Today, Wang Chuanfu has set a new goal for BYD, to be a witness and a writer on the journey to become an automotive powerhouse.
“Following the Market and Surpassing the Market”
Those who know BYD well know that the company is very persistent. This persistence is not a lack of flexibility, but rather a persistent insistence on things they believe in.
Over 20 years ago, when they first started making cars, Wang Chuanfu’s ultimate dream was to “only produce new energy vehicles.” In April of this year, BYD ceased production of fuel vehicles, becoming the first automaker globally to officially announce the cessation of production of fuel vehicles.
More than a decade ago, Wang Chuanfu once made a bold statement, “Once household consumption starts, BYD can make a Tesla in minutes.” At that time, Musk directly retorted, “BYD is not Tesla’s competitor.”
In the first half of this year, BYD’s sales surpassed Tesla. In October, BYD’s sales reached 217,800 vehicles. Following September, BYD’s monthly sales exceeded 200,000 vehicles again, while Tesla’s sales in October reached 71,000 vehicles.
Former Tesla board member and founder of the Wesley Group, Steve Wesley, said in an interview that BYD is the only challenger to Tesla.
Time is the best touchstone. Whether Musk is willing to admit it or not, BYD has grown into a powerful competitor, and the “big talk” once uttered by Wang Chuanfu has gradually become a reality.
Behind the 3 million vehicles sold, there is a clearly visible rhythm- “follow the market trend and surpass the market trend.”
How to put it?
When BYD began making cars in 2003, even though Wang Chuanfu was thinking of “only producing new energy vehicles,” there was no technical experience and the market had not yet been excavated. “Rolling up sleeves and working hard” was not suitable for BYD’s “zero-based” situation. So Wang Chuanfu’s insistence had an added “knowledge of current affairs.”
While following market demand to produce fuel vehicles, it was also accumulating new energy technology.
These old stories have been told many times, perhaps the listeners have already memorized them. But, this is how a beginning has created BYD’s unique style: advocating for technology, enjoying solving problems through innovation; using the market as an alchemy for practical considerations.
The market experience and technological accumulation of these years have made BYD have a value proposition of always pursuing the lofty ideal, “Dream On, and All in.”
“Brand, fundamentally speaking, is accumulated by product and technology. Ultimately, it all depends on product and technology. Joint ventures rely on advantages accumulated over decades of fuel vehicle product and technology, to build a brand and sales. In the new energy era, whoever leads in product and technology will lead the market.” Wang Chuanfu said.
Starting from traditional fuel vehicles, BYD has mastered all of the important upstream and downstream components, and makes the accessories themselves. Electric vehicles are no exception, almost the entire production chain, from batteries to car-making, have BYD’s independent intellectual property rights.# BYD’s Achievements in the New Energy Auto Industry
In 2021, BYD introduced their core technologies such as DM-i Super Hybrid, e-platform 3.0, and Blade Battery to the market, which upgraded BYD as a new energy automotive technology platform and established a huge new energy auto ecosystem.
At the ceremony for the three millionth new energy vehicle produced, Wang Chuanfu expressed that “the production of three million units is the result of the collaboration between upstream and downstream partners of the entire industry chain and also represents the completeness of China’s new energy automobile industry chain, which cannot be separated from the support of policies.”
Though he humbly attributes the success to the strong support of national policies, it still reflects the powerful support of BYD’s million scale system and technological accumulation.
BYD welcomed an epoch of its own and became a pioneer, witness and leader of new energy vehicles.
What did BYD do right?
To some extent, BYD’s transition from 0 to 3 million vehicles is a leap of epoch: a transition from the emergence of a Chinese automobile brand to standing at the forefront of global new energy vehicle sales, from the struggle of fuel vehicles to domination in the age of new energy vehicles.
What does the three millionth vehicle production milestone signify? What has BYD done right?
Let’s take a look at some data.
In September of this year, the penetration rate of new energy vehicles in China exceeded 30% for the first time. This indicates that the user base of new energy vehicles is shifting towards the general public. At the same time, Chinese brands’ market share exceeded 50%, making them equal competitors with joint venture brands in market share.
It can be said that the competitiveness of Chinese automobile brands has reached a new stage and achieved a new leap. From the BYD Qin PLUS’s single-month sales topping Dongfeng Nissan’s Sylphy, we can also glimpse this “leap”. It took Chinese automobile brands a full 12 years to return to the A-level car market single-month sales crown.
Behind these stories, there is a new warning: “no company is unbreakable, and there is no such thing as a once-and-for-all solution.” Only continuous improvement will bring success.
BYD understands this very well. As mentioned earlier, whoever leads in products and technology will lead the market. “When capital, technology, and the market come together, anything can happen,” as Wang Chuanfu has always said.
Previously, the new energy industry was plagued by problems such as “safety and battery life” for power batteries. In 2019, BYD’s “Super Battery Technology” emerged, breaking through this impasse and charging towards the first million cars.
At the time, no one knew what would happen, and both He XPeng and Li Bin, who were hovering around the ICU door, were encouraging each other, hoping to survive the hardest days.
In 2020, XPeng and NIO ventured into new territories, while BYD introduced blade batteries, which provided structural innovation for lithium iron phosphate technology. These blade-shaped cells, with a thickness of just 13.5 millimeters, were horizontally connected to form a power battery module.
This structural innovation not only solved the range problem but also improved battery safety. “Safety is the greatest luxury of new energy vehicles,” a principle that BYD regards as unassailable and the red line for new energy vehicles.
At the ceremony marking the production of the 3 millionth new energy vehicle, Wang Chuanfu tirelessly reiterated that BYD adheres to the lithium iron phosphate battery route, which insists on the safety of raw materials and products.
The blade batteries not only achieved technological breakthroughs but also made lithium iron phosphate the mainstream power battery for electric vehicles. The BYD Han EV was the first to feature blade batteries and became one of the main vehicle models for the 2 millionth new energy car.
At the same time, when the electric vehicle market was not yet mature, BYD continued to do what it does best: “follow the market while surpassing it.” On the one hand, it continued to improve related technologies such as the e-platform 3.0, and on the other hand, it launched the DM-i super hybrid technology to strike back at gasoline-powered vehicles.
In 2021, BYD launched the DM-i super hybrid platform, which was installed in three car models: Qin PLUS, Song PLUS, and Tang. This was seen as a full-scale attack on the Japanese hybrid technology. Now, when people mention hybrid technology, many people think of BYD instead of Toyota.”Two-thirds of Chinese households do not own a car, making it difficult for them to buy pure electric vehicles for the first time. Therefore, BYD’s strategy is to focus on pure electric vehicles and plug-in hybrid vehicles,” said Wang Chuanfu, who has had this dream.
BYD, which walks on two legs, has achieved remarkable results. From January to October of this year, BYD sold 1.39 million vehicles. In October alone, the monthly sales exceeded 200,000 units, with 103,157 pure electric vehicles and 114,361 plug-in hybrid vehicles sold.
It can be said that the “pure electric EV + hybrid DM” dual-drive has become a mature growth model for BYD.
“We have relied on disruptive technologies such as blade batteries, DM-i super hybrid, and e-platform 3.0. By persistently focusing on pure electric and plug-in hybrid vehicles, we have achieved breakthroughs in technology, products, and market,” said Wang Chuanfu, who always has various technical materials and books on his desk, with a calm demeanour. Because he believes in his persistence and BYD’s “technology fish pond.”
Nowadays, BYD’s models are blossoming. Qin PLUS has torn open the sturdy crack of joint ventures, becoming the sales champion of A-class cars. Dolphin, one of the mainstay models, has adopted the latest electric platform and technology. In October, the monthly sales volume of Han EV continued to exceed 30,000 units…
Just like all the efforts have not been in vain and the natural progression, the production of three million new energy vehicles is also like this. Behind this is the continuous upgrading of BYD’s products and technology, which is the core driving force of the system’s continued growth.
Without false modesty, BYD’s contribution to Chinese automobile brands achieving equal market share with joint venture brands and surpassing them in technology cannot be ignored.
Conclusion:
Three million units are just a new starting point.
Wang Chuanfu brought another piece of news: BYD will build a new high-end brand with a disruptive technology and product – Yangwo. Its first model will be officially released in the first quarter of 2023.
It is reported that BYD will launch a very safe “black technology,” which will be first launched on the Yangwo model.
“In the past, BYD has been down-to-earth, mastering core technologies independently and opening up a new path in uncharted territories. In the future, we will continue to look up at the starry sky and move towards the summit of technology,” said Wang Chuanfu, who was apparently more excited than when he announced the production of three million vehicles.
By now, BYD has formed a dynasty + ocean, Tang, Skywalker and personalized brand matrix that covers products from home to luxury, from mass market to individuality. Meanwhile, BYD will continue to promote the internationalization of the passenger car industry.
The question is, what will be BYD’s “family car” model for its 400th new energy vehicle?
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This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.