Why would BYD want to sell batteries abroad?

On January 23, BYD said at the launch of its investor relations campaign that it would sell power batteries to the outside world. In the future, it will not even rule out the independence of the power battery business. I think this is the choice it has made in the face of many competitors.

BYD is a company with a wide range of businesses. It owns both the power battery business and its own car business. Currently, its power battery supply to its car business, and its fast-growing car business has driven its share of the power battery market to continue to grow.

Different agencies give different data. Some agencies believe that BYD's share in the power battery market exceeds that of the Ningde era (CATL), and others give data that the market share of the Ningde era exceeds that of BYD. The two companies compete fiercely in the power cell market. Unlike BYD, which has a complex business, the Ningde era is a new energy technology company that mainly provides a wide range of battery products.

In the first half of 2017, in addition to the Ningde era and BYD, the top three domestic power battery market shares were Wotema. The relevant statistics showed that the market shares of the Ningde era and Wotema increased rapidly, while BYD's market share was considered stable. Growth; Another big change is the rapid increase in the market share of newly entered Guoneng Battery and Voneng Technology among the top ten power battery suppliers, which all put BYD under pressure.

In the new energy car market, BYD is also facing fierce competition. In terms of the ranking of new energy car sales, BYD is still in the first place overall, but in the specific car style sales ranking, BYD has no advantage. The black horse in 2017 is the new series of Beiqi New Energy EC, which ranks first in terms of sales, and its sales volume has increased by nearly 18 times. The second place is Zhidou, with sales up 5.5 times year-on-year; BYD has won third place with Song DM. The subsequent growth of Chery EQ, Geely Emgrand EV, and Jianghuai IEV was also quite fast, while the former king BYD Qin fell to the ninth.

In the new energy passenger car market, BYD is also not dominant, ranking first and second in the market share is the old passenger car Yutong passenger car, Zhongtong passenger car, the market share of the two are 21 %, 19 %, BYD is ranked third with 17 % market share.

Because of the rapid rise of many competitors in the new energy car market, the market share of independent power battery suppliers such as Ningde era has risen rapidly. BYD, on the other hand, has seen its share of the new energy car decline in the face of challenges from many competitors, which may lead to its share in the power battery market being eroded by many opponents. In this case, choose to sell power cells abroad to maintain their competitive advantage in the power cell market.

Of course, BYD's choice to sell power batteries abroad may not be as good as it wants. Many new energy car companies already have their own power battery suppliers, and they may have concerns about adopting BYD power batteries given the competition. This requires BYD to improve its power battery competitiveness to ensure that it has a leading technological advantage and cost advantage in order to be able to participate in the power battery market.

The page contains the contents of the machine translation.