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Today, media reports said "BYD will stop production of fuel vehicles," citing minutes of an internal BYD meeting. The minutes of the meeting were: "Will all the fuel vehicles of the company be completely replaced and discontinued by DMI and DMP in the future?" BYD said that last year's 23W oil vehicles, this year's internal sales are expected to be about 15W fuel vehicles, future fuel vehicle planning has also been stopped, the fastest next year comprehensive replacement (as long as DMI monthly production capacity reaches 8W vehicles, monthly shipments 4W vehicles). This may indicate that BYD will completely stop production of pure fuel vehicles as soon as 2022. In response to this news, BYD responded that "there is no such plan at present, there is demand from the market and consumers at present, and there is demand from partner dealers."

According to data from the Passenger Association, retail sales of new energy passenger vehicles reached 185,000 in May, up 177.2% year-on-year and 17.4% month-on-month. From January to May this year, the production and sales of new energy vehicles were 967,000 and 950,000 respectively, both of which increased by 2.2 times year-on-year. According to BYD May Production and Sales Express, BYD sold 32,800 new energy vehicles in May, up 190% year-on-year; the cumulative sales volume of new energy vehicles in the first five months of 2021 reached 113,200, up 143.41% year-on-year. It is worth noting that in May 2021, BYD's fuel version sold 13,500 vehicles, compared with 20,500 in the same period in 2020. From the sales level, new energy vehicle sales do account for a large proportion of BYD sales.

According to BYD's 2020 financial report, BYD's business mainly includes automobile business including new energy vehicles and traditional fuel vehicles, mobile phone parts and assembly business, secondary rechargeable battery and photovoltaic business. The revenue of these three businesses is 83.993 billion yuan, 60.043 billion yuan and 12.088 billion yuan respectively, accounting for 53.64%, 38.34% and 7.72% of the total revenue respectively. Among them, automobile sector revenue accounted for the largest proportion, and compared with 2019 growth of 32.67%.

In January of this year, BYD Chairman Wang Chuanfu said that with the battery, motor, electronic control and other technologies of electric vehicles becoming more and more mature in recent years, it has completely surpassed fuel vehicles in terms of acceleration, noise, energy consumption, maintenance convenience, intelligence and life cycle cost. From a global perspective, the wave of motorization of automobiles has swept the world. Facing a new round of scientific and technological revolution and industrial transformation, accelerating the comprehensive electrification of automobiles has become a strategic choice for developed countries and automobile powers in the world. In addition, in May this year, BYD's 1 millionth new energy vehicle came off the line. Li Yunfei, general manager of BYD's passenger car brand and public relations division, once said that BYD's new energy sales will surpass Tesla in June this year and is expected to top the global new energy vehicle champion within the year.

It is worth noting that the suspension of fuel vehicles is not a precedent. As early as 2018, BAIC announced that it would stop selling fuel vehicles in the national market in 2025. In October 2017, Changan Automobile also released the Shangri-La Plan, which will invest 100 billion yuan in the whole field of new energy vehicles and completely stop selling traditional fuel vehicles in 2025. Haima also announced that fuel vehicles will be completely phased out by 2025. Fiat Group also announced a timetable for its brands to stop selling traditional fuel vehicles in 2017. Starting from 2019, Maserati will only produce pure electric and hybrid models. In 2021, the Jeep brand will be fully electric. In addition, Jaguar Land Rover also said that from 2020 onwards, all new Jaguar Land Rover models will be electric. Volkswagen also said that by 2030 at the latest, all models will be electrified, and traditional fuel vehicles will be completely stopped selling.

For BYD to stop production of fuel vehicles, there may be no plan at present, but in the long run, stopping production of fuel vehicles will also be a trend.

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