Under the joint influence of various factors such as policy support and environmental protection concepts gradually becoming popular among the people, the field of new energy vehicles has achieved rapid development. In this context, more and more companies have joined the wave of car manufacturing, and the new energy vehicle industry continues to heat up. While the new car-making forces are constantly improving their own competitiveness, the old traditional car companies have also begun to transform into the field of new energy vehicles. Among them, BYD has announced that it will stop the complete vehicle production business of its fuel vehicles and focus on pure electric vehicles and plug-in hybrid vehicles. Model business.
With the arrival of the new financial report season, new energy car companies have also released their own performance reports. Among the new energy car companies, what kind of report card BYD, which has stopped producing fuel vehicles and adjusted its business focus, has attracted the attention of the outside world.
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Performance "hurricane"
Recently, BYD announced its fourth quarter financial report and annual performance report for 2022. Financial report data show that in 2022, BYD will achieve operating income of 424.061 billion yuan, a year-on-year increase of 96.20%; net profit attributable to shareholders of listed companies is 16.622 billion yuan, a year-on-year increase of 445.86%; billion, a year-on-year increase of 1146.42%. Judging from the financial report data, BYD's performance last year was very impressive, which can be described as a double harvest of revenue and profit.
Specifically, the substantial growth of BYD's operating income is mainly due to the surge in its automobile and related product business. Although BYD's revenue is composed of three parts: automotive business, mobile phone parts and assembly business, and secondary rechargeable battery and photovoltaic business, the automotive business has always been the main contributor to BYD's revenue, and this time it will also include secondary rechargeable battery and photovoltaic business. The business is merged into the automobile business, so the increase or decrease of this business is bound to have a greater impact on BYD's overall business performance. The financial report shows that in 2022, the revenue of BYD's automobile, automobile-related products and other products business will be 324.691 billion yuan, a year-on-year increase of 151.78%, accounting for 76.57% of the group's total revenue.
Not only that, but BYD's mobile phone parts and assembly business has not slowed down, but has achieved steady growth . The financial report shows that in 2022, BYD's mobile phone components, assembly and other product business revenue will be about 98.815 billion yuan, a year-on-year increase of 14.30%. Under the joint pull of these two businesses, BYD's revenue has risen sharply.
The rapid growth of BYD's auto and related product business is inseparable from the increase in sales of its new energy vehicles. Financial report data show that BYD's total sales in 2022 will be 1.8025 million vehicles, a year-on-year increase of 149.88%. Among them, the sales volume of passenger cars was 1.7966 million, a year-on-year increase of 151.83%; overseas sales were 45,300 units, a year-on-year increase of 194.54%.
At the same time, BYD has also achieved an increase in profitability. With the continuous increase in sales of BYD's new energy vehicles, the scale effect has gradually emerged, and its depreciation and amortization of single vehicles has reduced the cost of single vehicles, which in turn has promoted the improvement of its overall profitability. The financial report shows that in 2022, BYD's overall gross profit rate will reach 17.04%, an increase of 4.02% from 2021. Among them, the gross profit margin of automobiles, automobile-related products and other products reached 20.39%, an increase of 3.69 percentage points year-on-year.
sales rise
In March last year, BYD announced the discontinuation of fuel vehicles and shifted its focus to the field of new energy vehicles. BYD, which adjusted its business focus, achieved a significant increase in sales of new energy vehicles in just one year. It is worth mentioning that BYD surpassed Tesla (1.31 million sales in 2022) to become the world's new energy vehicle sales champion in 2022 with sales of 1.8 million vehicles. The reason why BYD's new energy vehicle sales can achieve such a result is also related to many factors.
First, BYD insists on pure electric and plug-in hybrid dual lines in parallel to alleviate consumers' mileage anxiety. Under the combined effect of various factors, consumers are increasingly buying new energy vehicles. However, due to the lack of energy supplementary infrastructure, problems such as charging difficulties still exist, especially for pure electric vehicles, mileage anxiety is particularly obvious. The plug-in hybrid model can effectively alleviate consumers' battery life anxiety, and has gradually been favored by consumers.
Therefore, BYD, which insists on walking on two legs with pure electric and plug-in hybrid power, can meet the needs of consumers to a greater extent, thereby promoting the growth of new energy vehicle sales. The data shows that in 2022, BYD's passenger car sales will reach 1.8624 million units, a year-on-year increase of 155.1%. Among them, the annual cumulative sales of DM models (plug-in hybrid models) were about 946,200, and the annual cumulative sales of EV models (that is, pure electric models) were 911,100.
Second, BYD continues to enrich its product matrix to meet the diverse needs of different user groups. After years of development and continuous technological innovation, BYD's passenger car business has formed a multi-brand matrix including BYD brand, Tengshi brand, Yangwang brand, etc., and its prices also cover multiple price ranges of low, medium and high-end , can provide consumers with a variety of choices.
Taking the BYD brand as an example, the brand includes two series of products, the Dynasty series and the Ocean series. Among them, the Dynasty series combines technology with national tide culture, and has five family-style products of Han, Tang, Song, Qin and Yuan; The product positioning of the marine series is younger, and the new energy attributes are more obvious. The continuous enrichment of the product matrix has also enabled BYD to continuously expand the user coverage group, meet the diversified needs of users, and ultimately drive sales growth.
Accelerate "going to sea"
In recent years, more and more car companies have begun to deploy overseas markets, and BYD is no exception. While constantly "fighting" in the domestic market, BYD is also making frequent efforts to expand overseas markets. In fact, BYD announced the "passenger car going overseas" plan in 2021, and accelerated the pace of exploring overseas markets in 2022. Data show that in 2022, BYD will export a total of 55,916 new energy passenger vehicles throughout the year, a year-on-year increase of 307.2%. And the reason why BYD will accelerate the deployment of overseas markets is not without reason.
First, the demand for new energy vehicles in overseas markets has risen, and BYD's going overseas will help find new growth. Nowadays, the concept of low-carbon environmental protection has become a global consensus. More and more countries have adopted energy conservation and emission reduction as a development strategy. Therefore, overseas consumers have also begun to choose more environmentally friendly new energy vehicles when buying cars. In addition, many overseas countries have also introduced a series of preferential policies to implement subsidies for new energy vehicles, which has also promoted the popularity of new energy vehicles to a certain extent. As the demand for overseas new energy vehicles continues to increase, BYD will also usher in more opportunities in overseas markets.
Second, the technical advantages accumulated by BYD provide an important support for its overseas market layout. For manufacturing, technology is always at the core. BYD is also investing in technology research and development for a long time to continuously enhance its own technical background. At present, BYD has become the only car company in the world that simultaneously masters the core technologies of the new energy vehicle industry chain such as batteries, motors, electronic controls, and vehicle manufacturing. These core technological advantages will also become BYD's confidence in overseas markets.
The third is that BYD has accumulated rich experience in commercial vehicles going overseas, and these experiences will also provide reference and reference for BYD's passenger vehicles going overseas. Although BYD's passenger car business has just begun to go overseas, its commercial vehicle business has been "struggling" in overseas markets for many years. It is understood that as early as 1998, BYD established its European headquarters in the Netherlands; in 2013, BYD brought a pure electric bus to the Netherlands, and then gradually opened up the overseas market for commercial vehicles.
Over the years, the overseas development of the commercial vehicle business has not only given BYD a certain reputation in overseas markets, but also allowed it to accumulate rich experience in localized operations. These experiences will also become an important reference for BYD to deploy overseas markets for passenger vehicles. Provide assistance for BYD's passenger car business to speed up overseas.
pressure everywhere
Relying on the continuous deepening of multiple levels such as technology, products, and industrial chains, BYD has achieved double growth in sales and profits, and its overseas market expansion has also been quite smooth. It is undeniable that even with such impressive results, BYD still faces some challenges,
On the one hand, competition in the field of new energy vehicles continues to heat up. Despite abandoning the fuel vehicle business, BYD, which is fully committed to developing new energy vehicles, has achieved a substantial increase in sales of new energy vehicles and avoided competing with itself. However, the competition in the field of new energy vehicles is still extremely fierce. Not only traditional car companies are transforming into the field of new energy, but also new forces such as Xiaopeng, Weilai, and Ideal are also constantly increasing their weight in the field of new energy by virtue of their respective advantages. There are cross-border players such as Xiaomi and Huawei scrambling to deploy in the field of car manufacturing. And no matter what type of player they are, they all have their own trump cards. It is conceivable that BYD will face a lot of competitive pressure.
On the other hand, the new energy vehicle industry is about to enter the second half, but BYD still has shortcomings in terms of intelligence. Nowadays, the competition in the field of new energy vehicles has come to the second half, and intelligence has become a key point of competition for various new energy vehicle companies. New energy vehicle companies such as Xiaopeng, Weilai, and Ideal have frequently increased their focus on the field of intelligent driving. However, compared with BYD's outstanding performance in electrification, BYD is slightly inferior in intelligence. If BYD does not make up for its shortcomings in intelligence, it may have a negative impact on the development of its new energy vehicle business in the future.
Undoubtedly, the new energy automobile industry contains huge development potential, but it brings not only opportunities but also challenges. Although BYD is facing many challenges, relying on its strong technical strength, it can always find a solution to the problem. All in all, the competition in the new energy vehicle industry is intensifying, and BYD still has a tough battle to fight.