BYD: Leading China's EV market, pressing ahead with battery resource development
Aiming for electrification in all fronts using new energy vehicle technology
BYD Co., Ltd. (BYD Group) is a major private group company headquartered in the Shenzhen Special Economic Zone. Its major businesses are automobiles, rechargeable batteries and photovoltaic products, and handset and assembly services. The group was formerly a mobile phone battery manufacturing company established in 1995 by the head of the group, Wang Chunan-fu. In the 2000s a major mobile phone manufacturer selected BYD's battery for use in its phone. In July 2002 BYD stocks were listed on the Hong Kong Stock Exchange, and in June 2011, on the Shenzhen Stock Exchange. The company entered the automobile industry in 2003.
BYD Auto, which handles the Group's automobile business, released the world's first PHV in 2008, and is as a leader in China's new energy vehicle (NEV) industry. According to the Group's annual report in 2016, BYD Auto sold 96,000 NEVs (86,000 passenger vehicles /10,000 EV buses), making it the leader in market share at 23%. However, in the first half of 2017, the automaker lost its market share due to cuts in subsidies for NEVs in January, as well as intensifying competition.
BYD Auto is also strengthening initiative for the commercial vehicle sector, focusing primarily on EV buses, and has gradually expanded production facilities for the vehicles since it announced its NEV market strategy in 2015. Additionally, the OEM has advanced outside of China, making its way into North and South America, as well as Europe. Recently it has also been involved in the development and production of monorails.
Following announcements from the U.K. and France, talks on prohibiting gasoline and diesel engine vehicles in China took place at the beginning of September 2017. On September 27th, the Chinese government announced the Corporate Average Fuel Consumption and New Energy Vehicles Credits Joint Management Method Regulation. The initiative will go into effect on April 1, 2018, and obligate OEMs that manufacture passenger vehicles in China as well as companies that sell imported passenger vehicles to manufacture and sell a certain percentage of NEVs. BYD Auto, which has an abundance of experience with its battery business, is also starting development of lithium-ion resources, and may consider supplying companies like OEMs working to accelerate production of new energy vehicles.