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

On August 3, BYD released production and sales figures for July 2022. Data show that BYD sold 162214 new energy passenger vehicles in July 2022, an increase of 224.1 percent over the same period last year, setting an all-time high in a single month. Among them, 81223 plug-in hybrid cars were sold and 80991 pure electric vehicles were sold. In addition, from January to July 2022, BYD sold a total of 800371 new energy passenger vehicles, an increase of 299.65 percent over the same period last year.

"it is conservatively estimated that BYD's order this year will reach 1.5 million vehicles, and if the supply chain is done well, the order may hit 2 million vehicles," Wang Chuanfu revealed at an investor exchange meeting at the end of March 2022. " Based on the sales target of 1.5 million vehicles, BYD's target completion rate was 54% by the end of July, while according to BYD's current sales situation, it is not a problem to achieve the annual sales target of 1.5 million vehicles.

Policy subsidies promote short-term consumption, and high oil prices bring more development opportunities for new energy vehicles. On April 3, BYD announced that it would stop producing fuel-fueled cars, becoming the first traditional carmaker in the world to stop selling fuel-fueled cars.

According to the official website, BYD New Energy covers pure electric vehicles and plug-in hybrids, including the dynasty series composed of Qin, Han, Song, Tang, Yuan and other models, as well as the ocean series of dolphins, destroyers 05 and seals. The product price covers the range of 10-300000 yuan. Data show that July sales were 38697 in Song Dynasty, 34114 in Qin Dynasty, 25849 in Han Dynasty, 22172 in Yuan Dynasty, 21005 in Dolphin, 11788 in Tang Dynasty and 7548 in Destroyer 05. It is worth mentioning that the Seal, a brand new medium-sized car owned by BYD, went on sale on July 29 with a subsidised price range of 20.98 yuan to 286800 yuan. the new car is the first car equipped with e-platform 3.0. the main competitors include Changan Deep Blue SL03, Tesla Model 3, Zero C01 and so on.

Against a backdrop of soaring sales, BYD has been accelerating its global business for nearly a month. On July 8th, BYD Yuan PLUS was listed as ATT O3 in Singapore, realizing the debut of ASEAN countries. On July 5th, BYD announced that it had reached a strategic cooperation with European car dealer group Louwman to jointly develop the Dutch new energy vehicle market. Its first offline store in Amsterdam will open in September. On July 21, BYD announced its official entry into the Japanese passenger car market and simultaneously unveiled three pure electric models: yuan PLUS, Dolphin and Seal. Yuan PLUS is expected to go on sale in January 2023, while Dolphin and Seal will go on sale in mid and late 2023, respectively. On August 1, BYD announced a partnership with European dealer group Hedin Mobility to provide new energy vehicles for the Swedish and German markets.

However, under the background of big sales of new energy vehicles, BYD has fallen into a strange circle of increasing income without increasing profits. According to the financial report, BYD sold a total of 593745 new energy passenger vehicles in 2021, an increase of 232% over the same period last year, but the gross profit margin of cars and related products was only 17.39%, down 7.81% from the same period last year, setting a 14-year low. For comparison, Tesla's gross profit margin for bikes in 2021 is 30.6%. In other words, although BYD is the world's largest manufacturer of new energy cars, it is very different from Tesla in terms of gross profit margin. Tesla earns 70, 000 yuan from selling a car, while BYD earns only 2000 yuan.

The emergence of this situation stems from BYD's "self-production and marketing" model. At present, BYD's core technologies such as motors, batteries, electronic controls and semiconductor chips are almost self-developed and self-produced, and even spend a lot of money on lithium ore. In other words, BYD makes everything from battery raw materials to cars. Of course, the advantages and disadvantages of "self-production and self-marketing" are also very clear. the advantage is that in the context of the relatively complex international situation, holding the core technology in hand can really increase the long-term development of enterprises and avoid getting stuck. The disadvantage is that it does reduce the profit margin of products, and it is difficult to achieve resource matching.

According to BYD's performance forecast for the first half of 2022, the company expects to achieve a return net profit of 2.8 billion yuan to 3.6 billion yuan in the first half of 2022, half-year profit may be close to the whole of last year, an increase of 138.59 percent over the same period last year, an increase of 206.76 percent over the same period last year. It is estimated that the non-return net profit will be deducted from 2.5 billion yuan to 3.3 billion yuan, an increase of 578.11 percent over the same period last year. According to the performance forecast, BYD's profit in the first half of the year is close to the full-year level of 2021, and the increase in market share has led to a substantial improvement in earnings and, to some extent, hedged the profit pressure brought by the price of upstream raw materials.

A few days ago, BYD entered the list of the world's top 500 companies in 2022, ranking 436 for the first time, adding another seat for Chinese companies.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat