"Dismantling spree" BYD: others take the road to let others have no way out.

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"Dismantling spree" BYD: others take the road to let others have no way out.

2017-05-19 19:48:16 158 ℃

BYD has a big market share and Warren Buffett's support, but the recent cuts in government subsidies have seriously affected BYD's sales of electric vehicles.

In Shenzhen's BYD factory, more than 600 workers and a row of robots installed tires and dashboards on electric cars, with a car coming out of the production line every 90 seconds. "We can be there."Assemble a car in 45 seconds"The factory coordinator, Li Jun, said.

"Assemble 500 cars per day on average,Peak period can reach 900 vehicles."

BYD is a famous brand in China and also the world's largest manufacturer of electric vehicles. A few years ago, BYD has maintained double-digit growth, but since the government began to cut subsidies for electric vehicles, its sales began to nosedive. According to market research firm JL Warren Capital data, BYD hybrid car "Qin" accounted for 31% of China's electric vehicle market share.

Today's BYD gets $14 billion 500 million from cars and batteries. But it is not content with that, and BYD wants to cut costs as much as possible to ensure profits. BYD's method isIncrease the output of electric vehiclesSell more electric buses, trains, taxis to the local government and reduce production costs by expanding total production.

BYD started up at a low cost. In 1995, Wang Chuanfu pooled $300 thousand and founded BYD. He and a team of 20 studied the patents of other battery manufacturers, then disassembled the batteries and studied their components and assembly principles. They have to figure out the chemical composition of the battery and the manufacturing environment.

Six months later, the Wang Chuanfu team finally arrivedProducing batteries in a dry plant without humidity controlThis is better than its competitor, SANYO (SANYO).

Relying on cheap labor, Wang Chuanfu designed a semi-automatic production system. By 2002, BYD had 17 thousand employees and becameOne of the world's leading manufacturers of nickel based batteries and lithium ion batteries.

As the battery market matures, the rising star makes BYD feel more pressure. Later, Wang Chuanfu began to move into the nascent car market.

At the beginning, modeled on Wang Chuanfu will study battery routine, developed a compact car price $6000 F3. He led a team of engineers to disassemble TOYOTA corolla and analyze the car's main body and engine. Cottage edition Corolla was born.

Because the price is only half the corolla, BYD F3 become one of China's best-selling cars. 5 years later, BYD's car sales have been enough to compare with the Volkswagen, TOYOTA and other famous car brands.

Not long after, BYD engineers developed a dual-mode hybrid car. It is not only cheaper, but also more efficient than the TOYOTA prius.This time, BYD no longer used dismembered dafa. Engineers are already familiar with batteries, motors, and control systems, combining all technologies with BYD's "indigenous" hybrid vehicles.

Within days of BYD. In 2015, in order to slow down economic growth, the Chinese government put forward the "made in China" 2025". The programme lays particular emphasis on several key areas,These include clean energy vehicles. BYD's goal is to sell 2 million cars by 2020, up from 7 million in the next 10 years.

Government subsidies to electric vehicles have also helped spark the spark of the electric car revolution. Over the past two years, BYD's car sales have risen by about a year45%.

Last year, China's auto sales were 28 million, of which 507 thousand were electric cars, according to the association of automobile manufacturers. Although the proportion of electric cars accounted for car sales is not large, but it has increased by 53% compared with the previous year.

But the good times don't last long. In January, the government cut subsidies for electric vehicles, aimed at eliminating smaller, subsidized small companies and forcing the industry to begin industry consolidation.BYD's profit fell to $88 million (605 million 800 thousand yuan) in the first quarter, down 29% and sales by 34%.

To stop the slump, BYD hopes to promote global marketing of its new products such as buses, garbage trucks, trains, and eventually a clean energy urban transportation system.Government subsidies will play an important role again, and BYD has begun investing in bus factories in France and Hungary.

Shenzhen Pingshan new district is clean the ecosystem of the Peach Garden. BYD headquarters is located in Pingshan District of BYD Road, passenger taxi here will see BYD BYD six Pentagon mighty. Thousands of cars parked on the outside, full of momentum. Next to it are the BYD solar panel and the BYD elevated monorail.

"Do you know what the biggest industry America supports?" Is the bus",BYD vice president Michael Austin (Micheal Austin) said, the United States on the bus 80% capital expenditures are derived from the federal government.

In California Lancaster, Austen led the production team each year to provide 300 buses for the American market.Austen said he has 100 orders for electric cars in the port and is still working on the development of electric Airport trailers.

But the voices of criticism also exist. A stock analyst at JL Warren Capital said,BYD monorail technology can be described as "zero innovation", and the public transport sector has become saturated.

ASIMCO Technologies Limited (Asimco Technologies) CEO Jack Pankovskiy (Jack Perkowski) believes that the search for new energy city public transportation are numbered, BYD wants to persuade local governments to invest $800 thousand in the green bus is not easy.

But at any rate, BYD is stepping forward. Allegedly, once the BYD monorail passed the test,BYD will be the lowest cost monorail supplierOnly 120 million yuan (US $17 million 400 thousand) per kilometer. By comparison, the 7 kilometer long Las Vegas monorail opened in 2004 and cost $654 million.

Faced with questioning, executives responded,BYD is a two innovation company.