Wang Chuanfu’s Shareholders’ Meeting delivered key messages: speed, self-research of key intelligent technologies, large-scale cost reduction

Image source: Visual China

On June 8, BYD held its 2021 Annual General Meeting of Shareholders. Wang Chuanfu, chairman of BYD, said at the meeting that the first half of new energy vehicles is electrification, and the second half is intelligent. The process of electrification is accelerating, and it is necessary to win with “fastness”. The competition is based on resources, supply chain and product advantages. In the field of intelligence, all core technologies will be opened up, which will drive cost reduction and efficiency improvement through methods such as scale .

Winning by “fast” and competing for resources , supply chain and product advantages

The latest data shows that BYD has surpassed Volkswagen and has become the world’s third largest car company in terms of market value. BYD has risen among its own brands and has become a leader in electric vehicles. Wang Chuanfu, chairman of BYD , said at the meeting : “ It’s not the big fish that eats the small fish , but the fast fish that eats the slow fish .” The process of electrification is accelerating, and it is necessary to win with “fast” . The competition is about resources , supply chains and products. Advantage.

According to public data , BYD sold 114,900 vehicles in May , a year-on-year increase of 148.3%, and sales hit a record high. At present, BYD has formed three core series of products, Dynasty, Ocean and Denza, and also launched high-end cars represented by “Han”. The rich product matrix has strengthened its core competitiveness.

Cui Dongshu, Secretary-General of the Passenger Federation, believes that BYD’s new high sales volume is also due to its relatively stable supply chain and its ability to withstand some external risks. Compared with “Weixiaoli”, it has been constrained by the shortage of the supply chain since the epidemic, and it is difficult to release production capacity.

In the second half of new energy vehicles , open up intelligent core technologies

Wang Chuanfu pointed out at the meeting that the first half of new energy vehicles is electrification, and the second half is intelligent. On May 20, BYD released the CTB battery-body integration technology, and put the technology on the e-platform 3.0 to achieve a new breakthrough in the platform technology. CTB technology can improve battery volume utilization and body rigidity, while reducing weight and cost.

According to Industrial Securities data, the volume utilization rate of the CTB battery system can be increased to 66%, the safety of the front impact structure is increased by 50%, and the safety of the side impact structure is increased by 45%. Cui Dongshu, secretary-general of the Passenger Federation , also said that BYD is recognized by the capital market mainly because of its technological breakthroughs.

On June 8, Lian Yubo, executive vice president of BYD and president of the Automotive Engineering Research Institute, confirmed that BYD will soon supply batteries for Tesla. As Wang Chuanfu said: “The field of intelligence will open up all core technologies and conduct full verification. “

Drive cost reduction and efficiency increase through scale and other methods

Compared with the rise in car sales, BYD’s net profit margin in 2021 will drop sharply.

Due to the rising prices of upstream raw materials, BYD’s power battery and new energy vehicle manufacturers have created greater cost pressures. In addition, the demand for smart car chips is increasingly strong, and the impact of the epidemic is still ongoing.

Wang Chuanfu said at the meeting that the interests of shareholders will be safeguarded by reducing costs and increasing efficiency. “ We will explore all possible cost space through large-scale, highly vertical integration and other methods. ” According to the data in the first quarter of 2022, BYD’s new energy vehicle sales reached 286,300 units, a year-on-year increase of 422.97%. The scale effect has led to a substantial improvement in profitability. , and to a certain extent relieved the profit pressure caused by the rising price of upstream raw materials.

Regarding the company’s future strategy, Wang Chuanfu said that although there is great pressure to develop overseas markets , he still insists on promoting the global electric vehicle market. In June 2021, the Tang EV model will go to Norway; in February 2022, Yuan PLUS will be officially launched and has officially entered the Australian market.