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BYD Wang Chuanfu: the penetration rate of new energy vehicles is expected to exceed 35% by the end of next year

AddTime:2021-11-22    Author:Xinyuren    Hits:2979

On November 19, at the "2021 Sequoia digital technology global leaders summit", Wang Chuanfu, chairman and President of BYD group, said that the electric vehicle products provided by Chinese car enterprises have surpassed the traditional fuel vehicles in terms of performance and cost. He predicted that the sales volume of new energy vehicles in the Chinese market is expected to exceed 3.3 million this year, and the penetration rate of new energy vehicles in China will exceed 35% by the end of next year.

Wang Chuanfu mentioned that electric vehicles have ushered in an unprecedented period of development in China. The penetration rate of new energy vehicles has increased from 5% - 6% at the beginning of the year to about 20% last month. With the increase of the penetration rate of new energy vehicles, the industrial chain of the automobile industry will be reconstructed. Automobile is the largest industry in the manufacturing industry, and the whole industrial chain accounts for 10% of GDP. At the same time, the automobile industry is a manufacturing industry. In the future, its industrial chain will be reconstructed, especially the battery and semiconductor supply chain, which will usher in great changes.

In terms of batteries, batteries account for 30-40% of the cost of the whole vehicle. Electric vehicle batteries have been in short supply this year, precisely because of the surge in demand.

In terms of semiconductors, the demand for semiconductors, including power semiconductors such as IGBT and AI chips, has increased sharply. The demand for semiconductors of intelligent new energy vehicles is about 5-10 times that of traditional fuel vehicles. The increase in the number of electric vehicles is also one of the important reasons for the lack of core this year. "After years of development, semiconductors have formed a relative balance between supply and demand. This year, electric vehicles have superimposed other factors to break the balance between supply and demand."

For BYD's industrial layout, Wang Chuanfu said, "more than ten years ago, BYD saw the opportunity, insisted on investment, and laid out the fields of battery, motor, electronic control, industrial semiconductor and so on."

He said that BYD's investment in batteries is huge, but it is still in short supply this year because the market demand far exceeds BYD's expectations. He also mentioned that BYD's DM-I platform models are in short supply, and its orders are as high as 200000. At present, the delivery period of DM-I platform models has been as long as four months.

He believes that the Chinese market is much faster than other markets in the change of emerging things. "The change of vehicles and the promotion of the government is not just a commercial act. I believe that the speed of the transformation from traditional vehicles to electric vehicles in the future will far exceed the expectations of the management organization." he predicted that this transformation may be realized within 3-5 years. Enterprises must seize the opportunity in these 3-5 years, and the existing new energy vehicle enterprises, including BYD, will get a share first.

In terms of strategic layout, Wang Chuanfu believes that strategy and technology complement each other, and technology is hard enough to make correct judgment and direction control in strategy.

He took the battery as an example. "The problem with the input of the battery lies in the technical route. Whether it is ternary or ferric phosphate, cylindrical or square. Going in the wrong direction may lead to the drift of 10 billion yuan, which will waste three years."

Wang Chuanfu believes that BYD may be more accurate than its peers in direction judgment, and is gradually approaching its strategic objectives. Wang Chuanfu also said that on the road of new energy transformation, electrification is the first half and intelligence is the second half. At the same time, electrification and intelligence are intertwined. "China is the most competitive electric vehicle market in the world in the future. This competition will give birth to a number of competitive automobile enterprises with great potential.
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