Wrestling new forces, where will BYD win?

Sales volume is "hot" - in the past May, BYD sold a total of 114,943 new energy vehicles, a year-on-year increase of 250.44%, and this year's cumulative sales volume was 507,314, a year-on-year increase of 348.11%;

Market value is "fire" - in the latest global car company market value ranking, BYD surpassed Volkswagen Group to third place with a total market value of US$128.81 billion. The first is still Tesla, with a market value of US$728.98 billion, and Toyota Group ranks first Second, the market value is 228.96 billion US dollars;

Even the car has to be "fired" - 2 cases of fire occurred in one day, and the official has not responded.

BYD sold more than 110,000 vehicles in May. What is the concept?In the same month, the delivery volume of 7 new forces such as Ideal, Nezha, Xiaopeng, and Weilai, plus the new pure electric brands Aian and Jikr of 2 traditional car companies, totaled 82,000 vehicles.The amount of BYD is 1.41 times that of the combined sales of these nine car companies.Even with the addition of Lantu, Gaohe, Aiways and Skyrim, which have not yet announced their sales, it is difficult to match.

Although the new forces have been established for a short period of time, basically after 2014, but strictly speaking, BYD Auto is also very "young". It officially entered the automotive industry in 2003, and the first new energy vehicle F3DM was launched in 2008. The power is "older" by a few years.From this new energy "big brother", we may be able to get some inspiration.

The car news network has counted the sales of BYD and some new forces from January to April, and compared it with the sales of new energy vehicles in the country. It is found that BYD accounts for 29% of the market share of new energy vehicles in my country. The five car companies Zha and Leapmotor together account for only 13%, which is very small.

As we all know, the automobile manufacturing industry, and even the entire manufacturing industry, requires large-scale production. Only by forming scale effects can we generate cost and competitive advantages, resist risks, and continue to operate well.Wu Hui, president of the Ivey Research Institute, told Auto News that the scale of product manufacturing is a threshold, which was created by traditional OEMs through years of accumulation, and it is difficult for new forces to cross.

At the press conference of the Ministry of Industry and Information Technology in April, Luo Junjie, spokesman of the Ministry of Industry and Information Technology and director of the Operation Monitoring and Coordination Bureau, made it clear that my country's new energy vehicle industry has entered a new stage of large-scale and rapid development.This also means that companies that have not yet formed a scale and cannot keep up with the overall pace of the industry will be unsustainable.

During the two years trapped by the epidemic, new forces with relatively weak anti-risk capabilities have had a particularly difficult time.For example, Yundu, due to the broken capital chain, was in a state of suspension in February this year. At that time, Yundu said that "it is expected to resume production in two months." The news of "Yundu shareholders liquidation and sale of shares" came first.

Ying Yilun, founder and chairman of PATEO Internet of Vehicles, pointed out that it will take 4 years for a new car-making force to go from founding to producing its first car, and 4 years to go from 1 car to 200,000 cars.It can be seen that the new forces still have a long way to go in the accumulation of "quantitative change".

Under the trend of global integration, mainstream car companies purchase all over the world. For example, they purchase corresponding parts from first-class parts supporting companies such as Bosch, ZF, and Magna. The self-made parts rate of OEMs is about 30%-40%, which is a strategy to achieve the best economic efficiency and the highest product quality.

The new car-making force relies on suppliers for almost all parts of a car. Once a supplier cuts off the supply, it will affect the entire production line. The epidemic is already a warning.For example, Weilai, because of the single supplier of ES6 and EC6 A/B-pillar interior panels, has stopped production, resulting in a reduction in vehicle production.

Turning to the "big brother" BYD, before 2010, BYD's parts production rate was as high as 80%. BYD Chairman Wang Chuanfu once said in an interview: "Except for tires and glass, we have independent R&D and production capacity for almost all core parts. "This vertical integration model makes BYD basically self-sufficient.

It should be pointed out that there are also problems in this self-contained supply chain ecology, such as heavy assets and components that cannot fully participate in market competition, etc., which lead to lower operating efficiency of enterprises, which in turn affects the return on assets. Therefore, BYD is also constantly adjusting the supply. Chain strategy, introducing international suppliers internally and supplying its "star items" to the whole industry, such as providing blade batteries to car companies such as Hongqi and Tesla, BYD e-platform 3.0 has also been opened for sharing.

Interestingly, during the downturn of BYD in 2020, the vertical integration model was criticized by experts and media. Now, when global car companies are troubled by chip shortages, BYD has grown against the trend with the production capacity of MCU, IGBT and other chips. Started touting it again.

The world changes over time, and no system can always be perfect. Similarly, there is no model that can be used by all enterprises. However, it is always right to hold the core technology in your own hands. The bigger wind and waves, like duckweed, went with the wind.One more thing to say, no matter "big brother" or "little brother", safety is the premise of long-term development.(Car News Network Shen Dan from Beijing)