The automotive industry, among most global industries these days, has been up against supply shortages that have made it next to impossible to meet production and delivery goals. Meanwhile, Chinese automaker BYD Company （002594）has Overcome ‘ Supply shortage’ While Rivals Struggled.
Eye-catching performance in2021:
- BYD’s NEV sales were 603,783 units, up 218.3%Y/Y; sold 593,745 new energy passenger vehicles, up 231.6% t year-on-year.
- The company sold 99,112 all vehicles in December, up 76 %from a year ago. For FY2021 it sold 740,131 all vehicles, up 73.3% from a year ago.
- The company’s total installed base of power and energy storage batteries in December was about 5.049 GWh, and about 37.921 GWh in 2021.
- BYD’s stock price increased by +28.7% in 2021 on the back of decent operating and financial metrics.
How BYD coped with the challenge？
- Self-developed core components (battery, motor, electric control) , targeting high-end market, not foreign “assembly shop”.
- In 2021, self-research super hybrid DM-i, blade batteries, automotive-grade semiconductors and other mutual support, paving the fast track for BYD’s production and sales growth.
- When other manufacturers had to slow down the pace, BYD also claimed that not only to ensure that the chip self-production and self-sales, but also can be supplied.
- BYD is not only a “car manufacturer”, but also covers materials research, electronics, batteries, automotive, new energy, rail transportation, semiconductors, minerals and other fields.
- In addition to self-sufficiency , BYD also opened up the blade battery, IGBT chips, etc. to the industry, and won a large number of customers, such as the global electrification ancestor Toyota OEM pure electric models.
Such BYD, more like the “Samsung” of the automotive industry.
There is news that other departments of BYD, such as parts, car software, mold and other departments have the possibility of all independent operation in the future.
BYD has always been obsessed with “vertical integration”, now although still focused on the “whole industry chain” track, but “special and precise” – focus on “battery, motor, electric control” and other core technologies self-research and self-production.
Wang Chuanfu wants to do more, “If I personally have achieved a little bit, our aim is to make every subsidiary a ‘little Wang Chuanfu'”. This means that BYD not only produce their own cars, but also help other manufacturers
Our take: BYD has a comfortable space to move in and out – take a step back, just as Huawei Enterprises did , selling their own goods; further or can become Samsung, taking into account the service of other manufacturers.