Author: Wang Yunpeng
What is the concept of “1 million vehicles”?
In the Chinese automotive market, which has hundreds of car brands and 287 million registered vehicles, “1 million vehicles” might not seem particularly significant. However, in the new energy vehicle market with only 5.51 million registered vehicles, this number takes on a whole new meaning. This is because, currently, accumulated sales of new energy vehicles have exceeded 1 million, a milestone that many car manufacturers still find difficult to achieve.
Although the road to success is not easy, as the leader of the global new energy vehicle market, BYD has fearlessly overcome challenges and achieved its own milestones. In just 13 years, BYD has sold over 1 million new energy vehicles, and has climbed to the top of the industry.
On May 19, 2021, as a Han EV model rolled off the production line and was delivered, BYD’s cumulative sales of new energy vehicles officially exceeded 1 million. This milestone also marked BYD as the first Chinese brand to enter the “1 million new energy vehicles club”.
Wang Chuan-fu, Chairman and President of BYD Co., Ltd., said: “BYD has the responsibility to lead the development of China’s new energy vehicle brands. From 0 to 1 million vehicles, BYD has taken a global leadership role in the transformation of the automotive industry, and has witnessed the journey of China’s new energy vehicle industry from scratch to success, moving from a traditional car manufacturing giant to a new energy vehicle powerhouse.”
It is worth noting that even within the global market, BYD is one of the few car manufacturers that has sold over 1 million new energy vehicles.
A Determined Practitioner of New Energy Vehicle Manufacturing
Let’s go back in time.
In 1995, BYD was established. At that time, BYD’s main business was only second-hand batteries.
In 2002, BYD acquired Beijing Jeep GCI Mold Co. Ltd. and officially began developing new energy vehicles. On January 22 of the following year, BYD acquired Xi’an Qin Chuan Automobile Co., Ltd. for 269.5 million yuan, and officially entered the automotive industry, becoming the second privately-owned car manufacturer in China after Geely.
In 2004, BYD’s pure electric concept car, the ET, debuted at the Beijing Auto Show, becoming the first new energy vehicle ever presented at an international automotive exhibition held in China.
After six years of investment and accumulation, BYD officially launched the world’s first mass-produced plug-in hybrid new energy vehicle, the F3 DM, in 2008.# Byd’s Dominance in the New Energy Vehicle Market: Accurate Prediction of Industry Trends
With the continuous improvement of layout in the field of new energy vehicles, the sales of Byd’s new energy vehicles have been increasing year by year. According to statistics, Byd has been the sales champion in China’s new energy vehicle market for eight consecutive years from 2013 to 2020. Among them, the sales of Byd’s new energy vehicles exceeded 100,000 in 2016 and 300,000 in 2018. And now, with the 1 millionth new energy vehicle produced on May 19, Byd has achieved this milestone in just 13 years.
Compared to other mainstream independent brands, there has been no significant progress in the field of new energy vehicles. As for the new forces in the automobile industry, such as Nio, XPeng and Li Auto, they have only just crossed the threshold of 100,000 and 50,000 sales, respectively. Autonomous high-end new energy vehicle brands such as Dongfeng’s Aeolus and Shanghai Automotive’s IM have not yet begun to face market tests.
Why has Byd been able to maintain its leading position in the industry? The answer is simple: accurate prediction of the development trend of the new energy vehicle industry.
For example, in terms of product design and innovation, Byd is always willing to break convention and satisfy market and consumer demands in terms of appearance, interior, technology and other aspects. As for the safety of new energy vehicles, Byd is leading the way by developing and accumulating technologies in power batteries, and has launched flat blade batteries with high safety and long life advantages.
“By considering and deeply understanding all aspects of products, Byd has won the recognition of consumers,” said an industry analyst.
Good reputation between users is also contributing to Byd’s continuous sales growth. Data shows that Byd’s new energy passenger vehicles sold 25,034 units in April, up 104.2% YoY. Among them, pure electric vehicles sold 16,114 units, up 61.69% YoY. From January to April this year, Byd’s new energy vehicle sales volume reached 80,413 units, up 128.53% YoY. It is reported that the total number of orders for Byd’s DM-i series has exceeded 100,000, and the number of orders is still rising.
It is worth mentioning that, as Byd’s new energy vehicle production reached 1 million units, the company’s internationalization strategy accelerated again.
At the event, Byd announced that it will deliver 1,500 Tang EVs to Norway this year. The first batch of 100 vehicles has already been produced and will be shipped at the end of May, and will be delivered to local consumers in the third quarter.From the F3 DM in 2008 to the current series of DM-i models, BYD is one of the most thorough practitioners in the field of new energy vehicles.
How to meet the next million sales?
Looking at the current Chinese new energy vehicle market, extensive competition and the era of strong subsidies are things of the past. A “battle” competition pattern is forming between Tesla, mainstream joint venture brands, BBA, independent brands and emerging car-making forces.
Faced with increasingly powerful competitors and a more difficult market environment than ever before, how can we succeed in achieving the next million sales?
In BYD’s view, mastering core technology is the key.
“Independent brands can only truly stand firm and develop themselves by mastering core technology. BYD has always been oriented towards solving problems and driven by technological innovation, achieving development by solving problems and fulfilling people’s yearning for a beautiful life,” said Wang Chuanfu.
BYD not only talks the talk, but also walks the walk. Public information shows that BYD’s R&D expenditure has continued to grow in recent years. The financial report for 2020 shows that BYD spent RMB 7.465 billion on R&D, an increase of 32.62% YoY.
The huge investment in R&D has also brought considerable “returns” to BYD. “By mastering core technologies such as batteries, motors, electric control, and chips in the entire industry chain, BYD has achieved independent control and innovation in the chain. So far, BYD has accumulated 32,000 patent applications and 21,000 patent authorizations, ranking first in new energy vehicle patents,” said Wang Chuanfu.
In the field of plug-in hybrid, BYD’s DM-i series has entered the mainstream price range of traditional models and become a disruptor in the fuel vehicle market. In the field of pure electric vehicles, BYD has announced that its purely electric vehicles will be fully equipped with blade batteries and will make the puncture test an enterprise standard.
In addition, during the 2021 Shanghai Auto Show, BYD also released e-Platform 3.0. According to the information, this platform can achieve smaller module volume, lighter weight, stronger performance and lower energy consumption. Under this platform, the acceleration time of 0-100 km/h is as fast as 2.9 seconds, the longest cruising range is 1000 km, and “flash charging” for 5 minutes can travel 150 km.
In the semiconductor field, BYD began relevant layout when it entered the car-making industry. In 2003, before the acquisition of Qinchi Automobile, BYD had completed the establishment of the automotive semiconductor business unit. In October 2004, BYD Semiconductor was officially established.In 2008, BYD acquired Ningbo Zhongwei Semiconductor Wafer Fab and began to independently develop vehicle-level IGBT chips. In 2009, the company launched its first self-developed product.
As of 2019, BYD’s New Energy Vehicle IGBT modules are all self-sufficient, with a market share of about 20% in the Chinese vehicle IGBT market, second only to Infineon. As of the end of 2020, BYD’s vehicle-level power devices, mainly IGBTs, have been installed in over one million vehicles, with each vehicle traveling over one million kilometers.
“By the end of 2020, while the chip shortage affected global car companies, BYD’s self-produced chips were not only self-sufficient, but also had excess capacity for external supply.” a BYD staff member told “Auto Observer”.
“On the new journey, the production of one million new energy vehicles marks a historic milestone and a new starting point. By standing on a new stage, BYD will continue to focus on technological innovation, pursue exquisite craftsmanship, and perfect sales and services.” said Wang Chuanfu.
Thanks to the continuous improvement in product, brand, service and technology layout, BYD, with one million vehicles produced, has the strength and confidence to aim for higher goals. In the future, with the rise of China’s intelligent manufacturing and the growing recognition of Chinese vehicles’ high-end features among consumers, the next one million BYD new energy vehicles may arrive even faster.
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.