New energy vehicles in China：BYD’s Dream

As we focus our attention on China's high-speed railways, which have reached speeds of 350 km / h, Chinese traders are trying to build green and convenient in-city traffic. New energy vehicles are a green, efficient, innovative and shared equal to one of the city's interior traffic leader. Like high-speed rail, the development of new energy vehicles in China is at the forefront of the world. BYD, as the representative of domestic new energy vehicles, is carrying the banner of national automobile industry.

New energy vehicles have undergone a tortuous course of development in China. They have never been given any attention to the blowout and then to rational growth. Behind these changes are the changes in the state strategy and the economic environment.

In addition, new energy vehicles in China still have a deep foundation for development. As can be seen from the figure below, the development of new energy vehicles in the super-metropolis is good because of the dense population in these places and the large demand for automobiles; the advanced and high technology; the relatively serious environmental pollution and the huge green demand; and the maturity of the market, complete industrial chain.

With the development of new energy vehicles gradually rising to a national strategy, many policies have started to "build brick and tile" for the development of new energy vehicles. December 27 Ministry of Finance, State Administration of Taxation, Ministry of Industry and Information Technology and Ministry of Science and Technology jointly issued a public notice saying that from January 1, 2018 to December 31, 2020, the purchase of new energy vehicles will be exempted from vehicle purchase tax. The Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Commerce, the General Administration of Customs and the General Administration of Quality Supervision, Inspection and Quarantine promulgated the "Measures for the Administration of Passenger Vehicle Enterprise Average Fuel Consumption and New Energy Vehicle Points" to be implemented on April 1, 2018. The Ministry of Industry and Information Technology, the National Development and Reform Commission and the Ministry of Science and Technology jointly issued the Medium- and Long-Term Plan for the Development of the Automotive Industry and set a short-term goal: by 2020, the annual production and sales of new energy vehicles will reach 2 million units and the specific energy of power battery units will reach 300 W / kg , The system strives to achieve 260Wh / kg of specific energy and costs down to less than 1 yuan / watt. By 2025, new energy vehicles account for more than 20% of automobile sales and production, and the specific energy of power battery systems reaches 350Wh / kg.

Affected by the policy, as shown in the figure below, as of September 2017, the development of new energy vehicles in China is generally on the rise.

However, when it comes to the new energy automotive industry, BYD companies cannot be ignored. BYD can even be argued that it is the promoter and leader of the new energy automotive industry. Founded in February 1995, BYD started out in the rechargeable battery business, and entered the automobile industry in 2003. In the meantime, it started operating in the renewable energy industry and ventured into the rail transit sector in March 2016. By November 2016, BYD had a staff of 220,000 employees in 30 industrial parks around the world, covering an area of approximately 18 million sq. m.

When it comes to new energy vehicles, there are two key words: green and energy saving. BYD's "bright green city" development plan is the development of new energy vehicles to the extreme green features. As shown in the charts below, the PM2.5 average concentration in the population distribution of Phillips is similar to that of the Rhineland-based sales in the countries and towns in this year, indicating that the BYD-led new energy vehicle manufacturing has greatly relieved the pressure on the environment. According to BYD official website, as of July 2017, that BYD can monitor the new energy vehicles have been about 410 million kilograms of carbon dioxide emissions, equivalent to about 34.23 million trees planted.

Of course, China's new energy vehicles are still facing many difficulties, such as the unbalance distribution of charging piles and the lower utilization rate. Since new energy vehicles have entered the national strategy, its supporting development should also be

supported. The industry generally believes that the next five years, will be the accelerated maturity of new energy vehicles, industrial structure formed by the "window period", the national industrial support efforts cannot be relaxed. Only when the two "wheels" of markets and policies are driven at the same time can China's new-energy automobile industry break a path.

First, the new industrial support policies should be clarified as soon as possible so that enterprises can adjust their development strategies in a timely manner. Second, to speed up the layout of new energy vehicles supporting infrastructure. Third, the state should guide the improvement of industrial facilities and deal with possible problems in the latter stage in advance.

As the only automobile enterprise in China that controls the battery, electric motor, electric control and vehicle manufacturing of new energy vehicles, BYD undertakes the social responsibilities of leading a new type of city with rapid transportation and good development represented by new energy vehicles.

Source：

1. Public data collation

2. BYD：http://www.bydauto.com.cn/index.html

3. PM2.5 concentration of 366 cities in China in 2015 was ranked：http://www.pm25.com/news/974.html

4. National Bureau of Statistics of People's Republic of China

5. National Passenger Car Market Information Joint Conference

6. BYD Company Limited Annual Report 2016