Tag Archives: BYD

BYD changes Shenzhen; next, the world

Shenzhen-based electric vehicle maker BYD is perhaps most famously known outside of China for the fact that Warren Buffet is a shareholder. Inside China, the company’s legendary status as a tech pioneer has taken on a new dimension since being named the only Chinese company in the top 10 of Fortune’s Change the World list this year. 

First published in 2015, the business magazine’s annual list spotlights the top 50 companies who address major social problems as a core part of their business strategy and innovation. 

BYD took third position in this year’s list, behind semiconductor giant Qualcomm and payments facilitator Mastercard. It was also the only car manufacturer listed among the 52 companies. Alibaba and Baidu were the only other Chinese companies to make it into the ranking, taking 37th and 39th spots, respectively. 

According to Fortune, BYD was chosen for the impact it has created in the global electric vehicle industry. The carmaker has not only expanded the new energy vehicle market, but also made significant contribution to environmental conservation. In Shenzhen for example, BYD’s 16,000 electric buses and 22,000 electric taxis have brought down the consumption of petrol or diesel oil by 980 million liters per year, while reducing carbon dioxide emissions by 2.22 million tones. 

As the US-based publishing group writes in its assessment of BYD: “BYD began life as a manufacturer of cell phone batteries and didn’t make its first car until 2003. But for three years, it was the world’s largest maker of vehicles that run partly or wholly on electricity (Tesla only recently overtook it).” 

Fortune sees the company’s development of a flexible “E-platform” for EV design and construction as key to its success. “A basic BYD model sells for a mere US$8,500 or so, after subsidies—a key factor in evangelizing EVs more widely,” Fortune writes. “And a recently announced joint venture with Japan’s Toyota should expand BYD’s global footprint.”

BYD has made the prestigious innovation list before, taking 15th position in the launch edition. That was when it was first commended for the fact that its electric buses only required to be charged once for the full day of operation, and their cost of maintenance was lower than diesel buses. This helped improve the city’s air quality and reduce smog. 

The timing could not have been better from a PR perspective, as Fortune’s list was published the day before BYD announced its latest financial results for the six months to June 30. Listed on the Hong Kong and Shenzhen bourses, BYD’s businesses include automobile, handset components and assembly, rechargeable and photovoltaic batteries. In the first six months, revenue rose 14.8% to RMB62.18 billion, while net profit soared 203.6% to RMB1.46 billion. 

In its typically understated style, BYD reported that sales of new models had done well in the first half of the year, generating revenue of RMB33.98 billion, up 16.27% YoY, accounting for 54.65% of the group’s total revenue. Among which, the new energy vehicle business was up 38.88%, at RMB25.45 billion, representing 40.92% of the total. 

Driving this growth (can’t escape the pun) was new models, apparently. As the company noted, its share of the Chinese market for EVs increased by four percentage points to 24%. That is against a backdrop of surging overall EV sales in China, up nearly 50% YoY, to 617,000 units in the first half, and despite a fall in overall vehicle sales across the country as demand for fuel-emitting vehicles has slumped. The company believes its newest models were largely to thank for this, particularly the “Tang EV”, which can accelerate from 0-100 km/h in 4.3 seconds and has a range of 500km. It is “regarded as the SUV with the most power in China, setting a new benchmark in the industry,” BYD writes.

In its financial report, management explained that the recent reduction in government subsidies had inevitably placed pressure on the industry. But in the long run, this is seen as being conducive to consolidating the market, promoting its healthy development. “Now the industry will be more market-driven, and new energy vehicle manufacturers with leading technology, reliable quality and good market reputation are likely to enjoy increasing market share,” it said.

Foxconn, BYD step up as Huawei cuts Flex

When you move against an opponent, they should always be significantly weaker than you are. This is the basis of Sun Tzu’s teachings. The US government might have heeded such millennia-old advice when it decided to put Huawei Technologies on its Entity List back in May. Now, the Shenzhen-based technology giant has given a demonstration of how the Art of War works in business.

Continue reading Foxconn, BYD step up as Huawei cuts Flex

Evergrande, BYD, power ahead in NEVs

Two of Shenzhen’s best-known brands are surging ahead in production of New Energy Vehicles. One of them just happens to be a property developer that is currently reinventing itself as a tech company.

According to local media, China Evergrande has begun mass production of its first new-energy vehicle just six months after unveiling plans to enter the industry. This is not thanks to home-grown brilliance, of course. It is thanks to Swedish technology, which was bought [note to the Trump Administration: not stolen] as part of the company’s purchase of a Swedish electric-car company that has designs from the now-defunct Saab brand.

The Evergrande subsidiary producing the cars is NEVS (National Electric Vehicle Sweden), which has begun production of a Saab 9-3 derived electric vehicle. The factory in Tianjin is capable of assembling 50,000 units per year.

According to a report in a European news site, specifications of the electrified Saab 9-3, which is now called NEVS 9-3 (or NEVS 9-3X in case of the estate version) are unknown. The car will be produced only for the Chinese market – there are no plans to export it to the rest of Asia, Europe or North America.

As reported recently, Evergrande has major ambitions for the NEV market. It has secured land in Guangzhou’s Nansha district for three large-scale production, design and R&D facilities, with the aim of outputting 1 million vehicles annually by 2022. Currently, China has only 2.3 million electric vehicles on the roads, but production is ramping up this year.

Across town, meanwhile, BYD, the Buffet-backed car company that produces mostly battery-powered cars and buses, is seeing its sales surge. And this is before the latest relaxation of government curbs on the vehicle industry that were designed to stoke demand.

BYD sold 26,571 NEVs in June, up 55% YoY. That brought sales in the first half of this year, to 145,653 units, up 94.5% YoY. 

BYD announced six new electric-powered vehicle models at the Shanghai auto show earlier in April. The company reportedly plans to offer a wide range of options, including sedans and sport utility vehicles.

It is potentially a huge market to vie for. Shenzhen’s city government has set the pace for adoption of electric vehicles, making its entire taxi and bus fleets zero-emission. Beijing has recently said it will follow suit, and now it seems every major city is lining up to do the same. Even third-tier cities such as Jiangmen, on the western side of the Greater Bay, have announced they will move to EV-only public transport.

GBA Briefs: 27/6/2019

BGI Investment:Shenzhen-based genome sequencer BGI Group will invest RMB470 million (US$68.3 million) to build a base for the research and development and production of reagents used in genetic testing in Qingdao. Read more.

Didi and GAC:Didi expands partnership with Guagndong-based auto giant GAC Group on ride-hailing operations, fleet management, autonomous driving and other areas of smart automobile technology. Read more. 

HK Retail Gloom:As global uncertainties continue to cast a shadow over consumer sentiment, Hong Kong’s total retail sales are expected to decline 5% to HK$460 billion in 2019, according to PwC Hong Kong. Read more.

BYD Design:Carmaker BYD is ready to open its global design hub in Shenzhen, which will have 400 engineers and designers working together on design, clay modeling, facility processing, comprehensive review as well as virtual evaluation. Read more. 

Bao’an Deals:Shenzhen’s Bao’an district inked three cooperative deals with German companies and institutions, focusing on high-end intelligent manufacturing technologies and the development of vocational education. Read more. 

Guangdong firms boost R&D spending

Guangdong’s listed A-share companies raised their investment in R&D by nearly 20% last year, to more than RMB144.3 billion. In so doing, they increased their share of R&D spending by all listed A-share companies by four percentage points to 19.82%.

Telecom equipment maker ZTE, which was nearly bankrupted a year ago by US sanctions, ranks top among the province’s listed companies and 7th among all A-share companies, investing RMB10.9 billion in R&D last year. (Huawei Technologies is not publicly listed.) Others that invested more than RMB5 billion in R&D include Foshan’s Media Group, Shenzhen’s BYD, Zhuhai’s Gree Electric, and Huizhou’s TCL Corp.  As a percentage of income, IT companies invest the most, at an average of 11.3%.

Guangdong has 615 listed companies with a total market cap of RMB10.62 trillion, accounting for 18.22% of all A-share companies. They generated income of RMB1.61 trillion in Q1, up 12.41% from the previous quarter, with profits up 25.28% to RMB161.73 billion.

Read more in Chinese.

Guangdong zooms ahead with electric cars

New Energy Vehicle* production is surging in Guangdong, which is already the country’s largest market for electric cars. In Q1, sales jumped 252.1%, by far the fastest in the country. Leading the charge were Guangzhou Auto (+71% YoY) and Shenzhen-based BYD (+147%).

Guangdong is the country’s biggest producer and consumer of NEVs. There are more than 250,000 on provincial roads, which is around one-eighths of the country’s total. Add in the number of Teslas in Hong Kong – it is the largest per-capita market for Tesla worldwide – and the Greater Bay Area’s dominance in electric vehicles becomes clearer.

Despite falling car sales overall, and despite the headlines about carnage in the startup sector for electric cars, the NEV market is accelerating quickly: around 1.7 million are expected to be sold nationwide this year.

Shanghai will likely catch up in terms of production once Tesla’s Gigafactory there starts pushing out Model 3s, but the Greater Bay Area is expected to remain in the lead on sales. Moreover, looking ahead, production capacity is accelerating fastest here.

Three factors are driving this growth in the GBA. One, industrial policy adjusted quickest here once the central government made it a national priority. This enabled traditional manufacturers such as Guangzhou Auto to undertake major upgrades of production capacity while their startup compatriots were still raising money and learning how to make cars. Total production capacity of NEVs in Guangdong under construction has already exceeded 2 million units annually, including 400,000 for the new energy line of Guangzhou Auto and 400,000 for its Japanese joint venture, GAC Toyota. These should be completed by 2022.

Two, electric vehicles fit into the national game plan for stimulating consumption, and Guangdong has been quick to launch supportive policies such as increasing the quotas for new licenses.

Three, two of the world’s most efficient multinational car companies have been attracted here by favorable policies and deeper consumer markets. They are Toyota, which has invested RMB11 billion into its existing partnership with Guangzhou Auto to produce NEVs, and Mercedes-Benz, which is partnered with BYD.

Read more (in Chinese).

BYD to build 7th battery plant in Guangzhou

Shenzhen-based new energy car maker BYD will build its seventh battery plant in Guangzhou, according to the Xinhua News Agency. The RMB4 billion (USD579 million) facility will focus on research and development, production and manufacturing of lithium polymer batteries for electric devices such as mobile phones, laptops and computers.

It is aiming for an annual output of RMB13 billion once it launches in 2020. Construction will start in late June. 

BYD’s battery division has become independent of the car-making parent and works closely with other original equipment manufacturers to cope with increasing pressure from rivals like CATL. BYD plans to list its battery business by 2020, Wang Chuanfu, the firm’s founder, said previously.

BYD rolls out 300th E-bus in California

Shenzhen-based BYD has rolled out the 300th electric bus at its Lancaster manufacturing plant in California, reports Xinhua Net.

In a celebration with its customer, the Antelope Valley Transit Authority, BYD said that AVTA is closing in on a landmark of its own as it expected to realize 1 million miles of zero-emission bus operations in early May.

BYD called AVTA a model for transit agencies seeking affordable green technology – especially those in California that need to comply with state regulations requiring zero-emission fleets by 2040.

Lancaster Mayor R. Rex Parris termed the 300th bus as “the tip of the iceberg.” He credited BYD for creating hundreds of American jobs with more on the horizon as the company expands its product lines of battery-powered buses, trucks and forklifts.