How will BYD deal with Teslas winning three battery trumps from China, Japan and South Korea?

category:Finance
 How will BYD deal with Teslas winning three battery trumps from China, Japan and South Korea?


Tesla takes three trumps

Under the influence of many factors such as the sharp decline of subsidies and the switch from the fifth to the sixth national standards, BYDs sales volume of new energy vehicles in 2019 was 229500, down 7.39% year on year. Driven by the favorable factors such as the best-selling model 3, multiple price cuts and plant construction in China, Tesla delivered 367500 new cars in the world last year, achieving a 50% year-on-year growth, of which model 3 brought 300000 sales for the whole year.

With the rapid growth of production and sales, Tesla has also made a new layout on the power battery which is regarded as the heart of new energy vehicles. The catalogue of recommended new energy vehicle models (the 11th batch in 2019) released by the Ministry of industry and information technology in December last year revealed that Tesla has changed its battery procurement and is no longer interested in Panasonic, but added LG Chemical.

As the worlds largest installed capacity of power battery, Ningde era holds the orders of most domestic and foreign mainstream automobile manufacturers, such as BMW, Volkswagen, Toyota, Volvo, SAIC, BAIC, GAC, etc. last year, it became more and more prominent in the field of power battery in China, and some vehicle enterprises began to carry ncm811 power battery in Ningde era. According to the data of China automobile power battery industry innovation alliance, in 2019, Chinas power battery loading volume was 62.2gwh, up 9.2% year on year. Among them, the loading volume of Ningde era is 31.46gwh, with a market share of 50.58%.

It is worth noting that at present, Tesla Model 3 mainly uses cylindrical batteries, while the Ningde era of this cooperation mainly produces square batteries. This means that Tesla is likely to change the technical route and chassis design, which will greatly change the overall design.

Zhang Qiang, an auto industry analyst, believes that the technical standards and principles adopted by square and cylindrical batteries are quite different. Compared with cylindrical batteries, square battery packs have added points in terms of safety. With Ningde times, a local battery supplier in China, it not only reduces the trade risks caused by foreign electric pools, but also improves Teslas bargaining power as a complete vehicle factory.

At last months delivery ceremony for the first batch of social users of domestic model 3 of Shanghai Super factory, Tesla CEO Elon Musk happily danced. With the model 3 and new model y being put into production in Shanghai, and Ningde era is about to join in the battery supply of Tesla, Tesla expects that the global delivery volume will easily exceed 500000 in 2020. Musk recently announced that its new model y will start delivery in March this year, nearly half a year ahead of the original autumn delivery target.

BYD, which was successively taken by Ningde era from the domestic power battery sales crown and Tesla from the global new energy vehicle sales crown, is suffering from the enemy, and its domestic new energy vehicle sales crown is also under threat.

Wang Chuanfu, chairman and President of BYD, said in an interview with the first financial reporter that new energy vehicles are planned to account for 90% of BYDs auto business in 2020 and will become 100% when the time is right.

In recent years, the annual sales volume of BYDs cars has been hovering between 400000 and 500000. However, due to the continuous decline of Chinas new energy vehicle market since July last year, the pressure of BYD is increasing, and various measures are being taken to deal with it. Since becoming a Toyota battery supplier, the new company signed a joint venture agreement on the establishment of a pure electric vehicle R & D company in November last year. The new company will be established in China in 2020 to carry out the design, R & D and other related businesses of pure electric vehicles and the platforms and parts used by the vehicles.

In addition, BYD is also taking action in battery and other fields. According to tianyancha data, BYD established three companies, namely Fudi Mold Co., Ltd., Fudi Technology Co., Ltd. and Fudi Power Co., Ltd. on December 24-25, 2019, with registered capital of 100 million yuan, and newly invested in Fudi vision Co., Ltd. on December 27, plus Shenzhen Fudi Lithium Battery Co., Ltd., which has been established, and established five Fudi series companies under 2019 Division. BYD has previously said that it is expected to separate the entire battery from the market around 2022, and whether the construction of the Fudi system is ready for this, the reporter can not confirm for the moment.

For a long time, BYDs new energy vehicles are self-sufficient in power battery supply, so its battery shipment scale is overtaken by Ningde era. In 2018, Ningde era, which holds many orders from automobile enterprises, has twice the battery delivery volume of BYD. At present, the gap between the two is further widened. In addition, Ningde era also reduces the cost of battery through technology. CTP (direct integration of battery cells into battery pack) technology is launched at the Frankfurt Motor Show in 2019, with energy density increasing by 10% ~ 15%, and cost reduction expected to be about 30%. Teslas hand in hand with Ningde era is believed to be based in part on cost reduction considerations.

In the face of the coming Tesla, if the cost of power battery can not be reduced rapidly, BYD will probably lose the sales crown of Chinas new energy vehicles. In order to improve its competitiveness, BYD is constantly striving to improve the energy density of batteries and reduce the cost of batteries. At last months China electric car 100 peoples meeting forum (2020), Wang Chuanfu revealed that the blade battery developed by BYD is a new generation of lithium iron phosphate battery, and BYD Han will be the worlds first model equipped with blade battery, which is expected to be launched in June this year. However, whether the blade battery is a technological innovation is controversial in the industry. In the face of doubt, BYD responded that it planned to introduce the blade battery technology in detail at the technical analysis meeting in March. According to Wu Hui, BYDs top priority is how to truly separate and separate the battery industry. After all, BYD has to supply a large number of other car companies, so its battery production can keep growing and reduce costs. Source: First Financial Editor: Guo Chenqi, nbj9931

In the face of the coming Tesla, if the cost of power battery can not be reduced rapidly, BYD will probably lose the sales crown of Chinas new energy vehicles. In order to improve its competitiveness, BYD is constantly striving to improve the energy density of batteries and reduce the cost of batteries. At last months China electric car 100 peoples meeting forum (2020), Wang Chuanfu revealed that the blade battery developed by BYD is a new generation of lithium iron phosphate battery, and BYD Han will be the worlds first model equipped with blade battery, which is expected to be launched in June this year. However, whether the blade battery is a technological innovation is controversial in the industry. In the face of doubt, BYD responded that it planned to introduce the blade battery technology in detail at the technical analysis meeting in March.

According to Wu Hui, BYDs top priority is how to truly separate and separate the battery industry. After all, BYD has to supply a large number of other car companies, so its battery production can keep growing and reduce costs.