AutoBeta(AutoBeta.net)04/08 Report--

On April 8, BYD Automobile released the latest production and sales express. According to the data, the cumulative sales volume from January to March of 2020 was 61273 vehicles, down 47.89% year-on-year, among which the sales volume of new energy vehicles fell 69.67% year-on-year to 22192 vehicles, and the sales volume of fuel vehicles fell 11.99% year-on-year to 39081 vehicles. In March 2020, the sales volume was 30599 vehicles, down 34.65% year-on-year, among which the sales volume of new energy vehicles fell 59.52% year-on-year to 12256 vehicles, and the sales volume of fuel vehicles fell 9.51% year-on-year to 18343 vehicles.

The epidemic led to factory shutdown and dealer sales suspension is the main reason BYD car sales nearly halved, it is worth mentioning that the previous 2019 earnings report also indicates BYD sales growth difficulties.

On March 31, BYD released its 2019 annual performance flash report. The company realized operating income of 127.739 billion yuan in the current period, down 1.78% year-on-year; the net profit attributable to shareholders of listed companies was 1.612 billion yuan, down 42.03% year-on-year. Both operating income and net profit have declined compared with 2018. As for the reasons for the double decline in profits, BYD said that it was mainly due to changes in the industry, policies and the impact of rising R & D expenses in the current period.

In the first half of 2019, BYD's cumulative sales volume was 228072 vehicles, up 1.59% year-on-year. Among them, the cumulative sales volume of new energy vehicles was 145653, an increase of 94.50% year-on-year. However, since the subsidy for new energy vehicles declined, BYD's sales volume of new energy vehicles began to show negative growth. Finally, BYD's total sales volume for the whole year fell by 11.39% year-on-year to 461,300 vehicles, only achieving 70.98% of the sales target of 650,000 years, among which the sales volume of new energy vehicles was 229,500 vehicles, down 7.39% year-on-year.

Of course, in the context of the overall downturn in the auto market, BYD auto sales decline is inevitable. Except for BYD cars, most car sales showed negative growth.

According to preliminary data from the Passenger Association, the average daily retail sales of passenger cars in China fell 36% year-on-year in March this year. The year-on-year decline in the first week of March was 50 per cent, followed by a 44 per cent decline in the second week and a 40 per cent decline in the third week. According to the association, although some cities have encouraged a return to normal order, it is difficult for consumers to return to normal confidence in car purchases by the end of March, and students have basically not started school, so it is difficult for demand for car purchases to erupt strongly in the short term.

On March 31, the executive meeting of the State Council proposed that, firstly, the policy of purchasing subsidies and exemption from purchase tax for new energy vehicles should be extended for two years; secondly, the central finance should adopt awards instead of subsidies to support the elimination of diesel trucks with emission standards of national III and below in key areas such as Beijing, Tianjin and Hebei; thirdly, value-added tax should be levied on the sales of used cars by second-hand car dealers from May 1 to the end of 2023 by 0.5% of sales volume.

As the main force of BYD's automobile sales, new energy vehicles have continued to decline since last year's subsidy decline, and the decline has been expanding. However, with the continuous introduction of policies to encourage automobile consumption, coupled with the extension of subsidies for the purchase of new energy vehicles and exemption from purchase tax, BYD's sales of new energy vehicles are expected to improve.

Some analysts said that with the rapid recovery in March and further repair in April, it is estimated that the weekly sales volume of the automobile market at the end of April will be close to the normal level of the same period in history. If the stimulus consumption policy is effective, the impact of the epidemic in May will be basically eliminated, and the direct impact of the epidemic on China's auto market will be better than that in Europe.

In addition, BYD announced information on blade batteries on March 29, which are also seen as an assist in future BYD car sales growth. It is understood that the blade battery will be carried for the first time in BYD Han model, the car positioning dynasty family flagship model, plans to be launched in June.

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