On the first day of the new year in 2024, BYD released its sales data for December and the entire year. In December, sales reached 341,043 units, an increase of over 2,000 units compared to November's 301,903 units.
The total annual sales were 3,024,417 units, a year-on-year growth of 61.9%, exceeding the annual target of 3 million units. BYD became the sales champion in the Chinese automotive market and the global champion in new energy vehicle sales.
Looking at the detailed product lines, there are also many highlights. The Tang series achieved annual sales of 127,840 units, and the D9 became the annual MPV sales champion.
The Yuan Plus achieved a monthly sales volume of over 1,500 units, entering the top five in the luxury car market with a million yuan price tag. The rugged off-road model, the Fangche Leopard, achieved sales of 5,086 units in December, establishing a strong presence in the off-road market.
In the domestic new energy vehicle market, BYD holds a market share of 37.6%. For every three new energy vehicles sold, one is a BYD vehicle. It was revealed by an automotive blogger that BYD distributed 3 million sales completion bonus red envelopes to all its stores.
Stores that achieved their sales targets received rewards based on the delivery volume, multiplied by 666 yuan. Almost all stores nationwide completed their tasks, and it is estimated that billions of yuan in red envelope rewards will be distributed.
What is the key to BYD's overwhelming success? Where does its core competitiveness lie?
1.Accumulation and Innovation in Technology
In August of this year, BYD produced its 5 millionth new energy vehicle. This milestone comes exactly 15 years after the production of BYD's first plug-in hybrid vehicle, the F3.
The company's hybrid technology has undergone four iterations, forming the fourth-generation hybrid technology that combines electric, plug-in hybrid, and hybrid systems, with a focus on electric power.
In terms of plug-in hybrid technology, BYD ranks at the forefront with a 43% engine thermal efficiency. In the electric hybrid aspect, it has advantages in four drive modes: pure electric, series hybrid, parallel hybrid, and engine direct drive.
The pure electric platform has gone through three generations of development, achieving platform standardization and accumulating various technologies.
The cutting-edge technologies showcased at the Yuan Plus launch event, such as spinning in place, lateral drifting, and normal driving with a blown tire, all originate from the pure electric platform's side-four-wheel technology and cloud-chariot technology.
Other technologies, such as blade batteries and CTB battery pack integration technology, not only improve range and safety but also impact unseen areas such as subsequent maintenance costs.
BYD's CTB battery pack integration, compared to Tesla's approach, integrates the battery pack, chassis top, and cover into a "sandwich" structure. This maintains the independence of the battery pack while increasing the onboard space.
In comparison, Tesla's Model Y connects the battery cover to the car's bottom plate. However, the entire battery pack is fused with the chassis, resulting in higher maintenance costs.
Contrary to the widespread promotion of the 800V high-voltage platform by other competitors, BYD's 800V high-charge architecture technology is the industry leader.
BYD Semiconductor launched the first 1200V silicon carbide power module in 2020, becoming the only domestically produced silicon carbide module used in large-scale production in motor drive controllers.
In 2022, BYD Semiconductor's power module installation market share reached 21.1%, close to the market share of the leader, Infineon.
In March of this year, Wang Chuanfu, the chairman of BYD, mentioned during an investor communication meeting that a particular technology is not the most crucial for us. We have many fish in our technology pool, and we catch one when needed.
2.Comparison with Tesla
Although BYD has made significant strides in technology, there is still room for improvement in its business operations. BYD currently has six series, including Wang Chao, Ocean, Tang, Yuan Plus, Fangche Leopard, and Chaopai, with over 20 models.
While there have been attempts with mid-to-high-end models like Tang, Yuan Plus, and Fangche Leopard, the main sales still come from the mid-to-low-end Ocean and Wang Chao.
In the 3.02 million units sold last year, Wang Chao and Ocean combined for over 2.877 million units, accounting for over 95% of the total sales and distributed across various models such as Qin, Song, Tang, Seagull, and Sea Lion.
Compared to BYD, Tesla is much more streamlined in terms of sales and models. Last year, Tesla's global sales were 1.31 million units, 30% less than BYD. In the 200,000 to 300,000 CNY market, Tesla only has Model 3 and Model Y, catering to sedan and SUV preferences. In the 600,000 to 800,000 CNY market, there are also only two choices: Model X and Model S.
This simplicity in product supply is reflected in the sales contributions of the main models. In 2022, BYD's best-selling Dolphin and Yuan Plus each sold 205,000 and 180,600 units, accounting for 11% and 10% of total sales, respectively.
In contrast, Tesla's top-selling Model Y and Model 3 sold 747,000 and 482,000 units last year, making up 54% and 37% of total sales, demonstrating a higher concentration.
BYD's another weakness lies in its intelligent driving capabilities. Although the company has cooperated with Horizon Robotics, Baidu, and others in autonomous driving, its assistance system currently only reaches L2 level.
Compared to the intelligent driving systems of emerging companies such as NIO and XPeng, there is still a certain gap. In terms of hardware configuration for intelligent driving, there is also room for improvement.
Taking the Tang EV and Han EV as examples, they are equipped with 6 cameras, 12 ultrasonic radars, and 5 millimeter-wave radars, slightly lower than the configurations of NIO ES9 and Tesla Model X.
Tesla's revenue last year was half from the United States, 22% from China, and 28% from other regions, including Europe. In contrast, the vast majority of BYD's revenue comes from China.
In recent years, BYD's competitiveness in overseas markets has gradually become evident, with the ATTO3 model (Yuan Plus) achieving monthly sales champion status in countries such as Thailand and Singapore, and the Sea Lion opening up markets in Europe and Japan.
3.Market Value One-Ninth of Tesla
In the first three quarters of this year, Tesla achieved operating revenue of 514.1 billion CNY, while BYD's operating revenue was only 425 billion CNY, despite BYD's higher sales volume than Tesla.
In terms of net profit, Tesla's net profit for the first three quarters was 50.7 billion CNY, while BYD's net profit was only 21.37 billion CNY. There is still significant room for improvement for BYD compared to Tesla.
In terms of market value, Tesla's latest market value is 7.58 trillion USD, approximately 5.3 trillion CNY, while BYD's market value is only 560 billion CNY, which is only one-ninth of Tesla's.
One is a Chinese car company rooted in the domestic market, taking full advantage of the cluster advantages of domestic new energy components and gradually expanding overseas. The other is an American car company with a global perspective, implementing industrial division and capacity layout worldwide.
In the face of competition in the global market, who has the advantage? Two companies in the same industry, with a market value difference of nearly 10 times – who is overestimating and who is underestimating?
