BYD Chairman Wang Chuanfu: Automotive Industry Has Entered the Elimination Stage
On June 8th, BYD held its annual shareholder meeting for the year 2022. Wang Chuanfu, Chairman of BYD, stated at the meeting that the automotive industry has entered a phase of elimination competition and without competition there will be no prosperity, only through competition can there be survival of the fittest.
Wang Chuanfu said that the key to winning in business is to have core technology. The transformation of new energy vehicles is a technological revolution, and only companies with core technologies can survive. If it’s just simple assembly, the probability of survival is very small. Secondly, there must be a good strategic direction. The industry opportunity window period is only 3-5 years, so choosing the right vehicle model and technology route is crucial.
Additionally, there needs to be a fast decision-making mechanism. Automobile companies are often large in size and have lengthy decision-making processes, but the new energy vehicle market is like a battlefield. In the later stages of the revolution, some car companies may collapse and quick decisions will be necessary.
Wang Chuanfu also stated at the meeting that BYD has been vigorously expanding production capacity in various regions since last year, and has basically solved the problem of supply and demand balance. Currently, the company’s production capacity and output of various components can meet future market demand. At the same time, the company is fully prepared to meet the growing demand in overseas markets.
Regarding the current price war in the industry, Wang Chuanfu stated that BYD’s advantages in scale, brand and technology will help it outperform its peers in future competition. BYD is confident of gaining a higher market share in the next 3-5 years.
SEE ALSO: BYD Chairman Wang Chuanfu Criticizes Autonomous Driving
On June 1st, BYD released its production and sales report for May. The sales volume of new energy vehicles in May was 240,200 units, an increase of 108.99% compared to the same period last year when it was 114,900 units.
The cumulative sales volume of new energy vehicles this year is 1,002,600 units, a year-on-year increase of 97.63%. Among them, the sales volume of pure electric passenger cars was 119,600 units in May, which is a growth rate of 124.19% compared to the same period last year when it was at 53,300 units; and the cumulative sales volume this year is at 488,600 units with a YoY growth rate of 92.39%.
The sales volume of plug-in hybrid passenger cars in May reached 119500 units, which increased by 96.42% compared to last year’s figure (60 thousand); and the cumulative sales volume this year has reached 507900 units with a YoY growth rate reaching up to102.8%.
