On March 27, 2024, the Chinese automaker BYD conducted an investor meeting where it made several announcements regarding next-generation technologies and sales targets. During the meeting, BYD revealed its plan to launch the 5th generation of DM (Dual Mode) hybrid technology in May. This technology reduces fuel consumption to 2.9 liters per 100km (around 81 miles per gallon) when low on charge, and with a full fuel tank and fully charged, it can travel up to 2,000km (around 1,242 miles).
In a meeting not open to the general public, BYD’s CEO Wang Chuanfu stated, “As demand for our current models exceeds supply, BYD plans to gradually transition to 5th generation DM technology starting from May, depending on market conditions. We expect the popularity of models equipped with next-generation hybrid technology to last 1 to 2 years.”
He emphasized BYD’s plans to invest more in DM hybrid technology, smart driving, chips, and algorithms. DM hybrid technology is expected to be a key driver of revenue growth by 2025.
BYD introduced its DM hybrid technology platform in 2008 and launched the 4th generation DM platform in 2021, dividing the technology into performance-oriented DM-p and energy consumption-oriented DM-i.
In battery electric vehicles, BYD launched the e-platform 1.0 in 2010, the e-platform 3.0 in 2021, and announced the 4th generation DM technology. Most current battery electric vehicles are based on the e-platform 3.0, characterized by integration, lightness, and efficiency. For instance, the 8-in-1 electric powertrain significantly reduces volume and weight, saving nearly 20% in costs.
The soon-to-be-released e-platform 4.0 still aims to improve component integration.
Meanwhile, Wang Chuanfu forecasted that annual sales in 2024 would increase by more than 20% from 2023, from 3.02 million units to 3.63 million units, which is lower than the previously stated 4 million units.
Wang Chuanfu also claimed that China’s new energy vehicle industry has now entered a phase of extinction, and from 2024 to 2026, there will be a showdown over scale, cost, and technology. He predicted that as Chinese automakers increase the production of new energy vehicles, the market share of joint venture automakers will decrease significantly. Within the next 3 to 5 years, the market share of joint venture brands in China will drop from 40% to 10%, and 30% will become a growth space for Chinese brands.
Wang Chuanfu stated that BYD’s strength lies in its scale, allowing it to obtain the best resources and prices from global suppliers. BYD has built a smart driving team of over 4,000 people and invested substantially in chips, algorithms, and recognition. It plans to show its strengths over time. BYD plans to launch solid-state batteries and high-energy density products for high-end models.
According to the China Passenger Car Association (CPCA), the share of local brands in China’s passenger car sales in February was 55.4%, up from 50.99% a year ago.
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