The "double core" of BYD's 1 million new energy vehicles supports the continuous growth of production and sales.

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On May 19, BYD, which has been the top seller of new energy vehicles in China for eight years in a row, ushered in another milestone when the millionth new energy vehicle was officially offline.

Technical strength to advance into the "millions Club"

According to data released by the Ministry of Public Security, as of the first quarter of this year, the number of cars in the country reached 287 million, of which 5.51 million were new energy vehicles.

1 million of the 287 million cars in the country are nothing. However, with only 5.51 million new energy vehicles, this figure is beyond the reach of car companies: while the millionth new energy vehicle is off the line, BYD has also become the first car company in China to complete the offline production of a million new energy passenger vehicles.

In 2003, BYD entered the automotive industry; in 2008, BYD began to sell its first new energy vehicle; from 2013 to 2020, BYD ranked first in sales of new energy vehicles in China for eight consecutive years; today, BYD's 1 million new energy vehicles are off the line, with a journey of one million, which is not only a jump in numbers, but also a change in technology and an unchanging original intention.

At the offline ceremony, BYD Chairman Wang Chuanfu said that by mastering the core technology of the whole industry chain, such as battery, motor, electric control and chip, BYD can achieve independent control and innovation of the industrial chain. Up to now, BYD has applied for 32000 patents and granted 21000 patents, ranking first on the list of new energy vehicle patents.

In terms of the technical route of new energy vehicles, BYD walks on two legs of pure electricity and hybrid.

On January 11 this year, based on the super hybrid system, BYD officially released the DM-i super hybrid technology, which is based on the electric hybrid system. It is reported that the total number of orders for BYD's DM-i models has exceeded 100000, and the number of orders continues to rise.

In the field of pure electric, BYD has announced that its pure electric vehicles will fully switch blade batteries, taking the needle test as the enterprise standard; in the e-platform 3.0 released at the Shanghai Auto Show, the electric vehicle has a zero acceleration speed of 2.9s and a maximum mileage of 1000 km. "Flash charge" drives 150km in 5 minutes, making it possible for the next generation of high-performance smart electric vehicles. Prior to this, Mercedes-Benz, Toyota, Didi and others have cooperated with BYD to develop electric vehicles, and e-platform 3.0 will continue to be open and shared to the industry.

Battery Network noted that the millionth new energy vehicle off the line this time is Han EV, the medium and large flagship car of BYD dynasty series, which has been on the market for 10 months, and its cumulative sales have exceeded 76000 (including Han EV and Han DM).

In addition to the domestic market, Wang Chuanfu also announced at the offline ceremony that based on the solid foundation and international image laid by bus electrification in overseas markets over the past decade, BYD's new energy passenger car business will also officially expand into the European market. Norway will be the first stop for BYD to enter the European passenger car market and begin a new journey of electrified travel. As the millionth new energy vehicle goes offline, the next 100 new generation Tang EV, will be ready to leave for Norway at the end of May and delivered to local consumers in the third quarter of this year. BYD plans to deliver 1500 Don EV, to Norway by the end of 2021, an important step for BYD in overseas markets.

"double Core" supports the High growth of New Energy vehicles

The production and sales of new energy vehicles have increased greatly, and the soaring orders are inseparable from the support of "double cores".

With the faster-than-expected growth of electrified intelligence, the "battery shortage" and "chip shortage" are spreading all over the world. Tesla, Ford, Volkswagen, General Motors and Weilai have all said that the production capacity of new energy vehicles is limited by battery shortages.

Since BYD released the blade battery in March last year, BYD has a growing say in the power battery field and a rising share of the global power battery market with the help of battery capacity and orders.

According to official data released by BYD, the total installed capacity of power and storage batteries for new energy vehicles was about 12.598 GWH in 2020 and about 7.428GWh from January to April this year.

At present, the order of Fudi battery from FAW Red Flag, BYD's power battery subsidiary, has been shipped, and the Fudi battery has also been designated by many car companies, such as Volkswagen, Toyota, PSA, Daimler, Hyundai, Dongfeng Honda, Changan Automobile, BAIC Kunbao and so on.

It is worth noting that the latest assessment by AlixPartners, an international consulting firm, shows that due to the continued deterioration of semiconductor shortage in the global automobile industry, automobile production will be reduced by 3.9 million vehicles in 2021, and the industry's revenue loss is expected to reach 110 billion US dollars (about 707.8 billion yuan).

Under the global "core shortage", BYD has prospectively laid out semiconductors when it started building cars, breaking the technological monopoly of overseas manufacturers:

As early as 2003, BYD started the acquisition of Shaanxi Qinchuan Automobile Factory. Its Automotive Semiconductor Division was established before the mobile phone battery industry entered the fuel vehicle manufacturing industry, and BYD Semiconductor was formally established the following year (October 2004).

In 2008, BYD acquired Ningbo Zhongwei semiconductor fab for 1.71 yuan, began independent research and development of vehicle specification-grade IGBT chip, and launched the first independent research and development IGBT chip in 2009. In 2019, BYD's new energy vehicle IGBT modules are self-supplied, accounting for about 20% of China's automotive IGBT market share, ranking second only to Infineon.

At the same time, BYD's gauge-grade IGBT has also been supplied to the outside world, with a wafer production capacity of 50, 000 wafers per month in 2020. By the end of December 2020, BYD's IGBT-based vehicle gauge-level power devices have been loaded with more than 1 million vehicles and a bicycle mileage of more than 1 million kilometers.

On the evening of May 11 this year, BYD released a pre-plan to spin off its semiconductor business into a listing on gem. BYD directly owns 72.3% of BYD Semiconductor and is the controlling shareholder of BYD Semiconductor.

With the acceleration of the development of BYD semiconductors and the substantial increase in the external supply of Fudi batteries, the sales of new energy vehicles will continue to grow. It can be predicted that in 2021, BYD's new energy vehicles, power batteries, semiconductor business and other sectors are expected to rise in volume and profit.