Specialist
Former manager at BYD Co Ltd
Agenda
- NEV (new energy vehicle) competitive landscape, major auto manufacturers’ development update and price adjustments
- BYD’s (SHE: 002594) – delivery update, plus Seal’s sales since launch
- Store quantity, profitability trends and reasons, plus the potential of the new luxury spin-off brand Yangwang
Questions
1.
BYD revealed its sales statistics in December 2022, which show a sales volume of about 235,200 units, exceeding 200,000 units for four consecutive months. The annual sales volume is 1.86 million units, with a YoY growth of 208%. What do you think of BYD’s sales in Q4 2022? What is the sales growth trend from October 2022 to the first half of January 2023?
2.
What were the sales proportions of BYD’s different auto types in December and Q4 2022?
3.
You just said that Seal’s production capacity and delivery volume have risen. Considering Seal’s consumer acceptance and order performance, what is your view on the model?
4.
From January 2023 to now, except for Seal, which was hit by Tesla’s big price cuts, have the order volumes of BYD’s other models declined? Have BYD’s overall order volumes dropped a lot as China started to phase out the NEV purchase incentives?
5.
Will other auto manufacturers reduce their prices, considering the impacts of Tesla’s price decreases on their order volumes and long-term sales?
6.
As you said, the industry will see fiercer competition in 2023. What do you think of the outlook for the demand growth or trends of NEVs in 2023, especially NEVs priced over RMB 300,000?
7.
You think that, in 2023, the penetration rate of NEVs will continue to rise and the profit margin will grow because battery cost may drop and the chip shortage will be alleviated. You also said that the competition among NEVs priced at over RMB 300,000 will be fiercer. What is your estimate of the growth rate of demand? Will the YoY growth rate be higher or lower?
8.
Do you think BYD has the potential to increase its market share in 2023? What competitive advantages will it rely on to realise this goal?
9.
You just said that only BYD wants to increase the revenue contribution of directly operated channels to about 30%, and all the services related to Denza and Yangwang are directly operated. What are the obvious differences between BYD’s directly operated stores and dealership stores in terms of service and vehicle supply?
10.
What is the sales target of BYD in 2023?
11.
You mentioned BYD is planning to sell passenger vehicles instead in overseas markets. However, in 2022, the US proposed the Inflation Reduction Act that may pose a threat to Chinese auto or battery manufacturers. What do you think are the effects of the act on BYD’s competencies in European and North American markets?
12.
What do you think are the markets overseas that BYD will mainly develop in 2023-24?
13.
You mentioned BYD may sift out some dealers in 2022. What are the quantities of BYD’s directly operated stores and dealership stores recently?
14.
You mentioned BYD will have a large number of models in reserve in 2023. Public reports say that BYD may launch Sea Lion, Destroyer 07 and Seagull of the Ocean series. What are the selling points of Sea Lion, Destroyer 07 and Seagull? What are their competing models on the market?
15.
An expert who participated in an Interview in 2022 also mentioned that BYD is sorting out the stores selling the Dynasty series and the ones selling the Ocean series. What is the current performance of these two types of stores respectively? Are there any big differences in their site selection, business planning and salespeople structures?
16.
Does BYD plan to enter the electric pickup truck market? What do you think of its competencies in this segment? Who will become its main competitors?
17.
Recently, Yangwang, BYD’s high-end brand, has drawn a lot of attention. BYD has launched two new models, namely U8 and U9, and introduced the e4 technology, a system powered by four independent motors, at its technology launch conference. What are the advantages and disadvantages of such a system? Is it difficult to achieve mass production?
18.
BYD’s Yangwang U8 is an off-road new energy SUV priced at about RMB 1m, and its Yangwang U9 is a battery-powered supercar priced at about RMB 1m. What do you think are BYD’s main rivals in the two vehicle types? What is your estimate of its competencies or product performance in the future?
19.
You said that BYD benchmarks its U8 against the traditional Mercedes-Benz G-Class model and possesses a clear target customer group. Thanks to its e4 technology, various driving scenarios, including circular drifts on ice and snow, climbing up steep hills in deserts, stability control after a tire blowout, U-turns and lateral movement, are available with Yangwang U8. According to the existing information about U8 and the e4 technology, is the U8 off-road SUV’s driving experience similar to that of Mercedes-Benz G-Class?
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