Where will BYD go in 2024?

Finally, on August 28th, we received BYD's first-half financial report for 2024. As we expected, BYD has shown significant and year-on-year growth.

The financial report shows that "total revenue reached RMB 301.127 billion, an increase of 15.76% year-on-year; net profit reached RMB 13.631 billion, a significant increase of 24.44% year-on-year."

Moreover, in addition to the growth in automobile-related products, BYD's mobile phone component assembly and other businesses have also seen impressive growth.

Certainly, automobile and related businesses contributed RMB 228.317 billion in revenue, an increase of 9.33% year-on-year.

Since the beginning of 2024, BYD has taken the lead in initiating the first wave of price wars in the new energy market. Many people saw the first round of post-holiday price cuts as BYD's decisive move to clear inventory, aiming to sell as many 2023 models as possible to pave the way for the market launch of its 2024 lineup.

Indeed, the post-holiday price cuts shook up the new energy market. While self-owned brands followed suit fearlessly, BYD's move effectively sparked the 2024 elimination round.

In 2023, BYD became the only Chinese self-owned brand to rank among the world's top 10 automakers in sales. It was the first time that a Chinese automaker appeared in the top 10 global sales rankings. Winning this honor was difficult, and maintaining it will be even harder.

Wearing the crown, BYD shoulders the expectations, competitions, intrigues, and strategies of the market, users, capital, and products, among others.

Time flew, and we're now in the second half of the year. At the Denza Z9GT pre-sale event, BYD spent nearly an hour discussing technology and intelligent driving.

What was supposed to be just a new car launch event for the Denza brand unexpectedly marked the true turning point for BYD in 2024, as its intelligent driving technology has finally arrived.

In this first-half financial report, BYD invested RMB 20.2 billion in research and development, a 42% increase year-on-year. To date, BYD's cumulative R&D investment has reached nearly RMB 150 billion.

In this era of digital memories, we recall Wang Chuanfu's comments on intelligent driving a year ago. However, when we combine "safety is the ultimate luxury," we realize that BYD's aspiration for high-level assisted driving stems from a fundamental commitment to safety—nothing is more crucial in a vehicle.

As the entire market embraces intelligent driving, BYD's advantages become evident. As China's top-selling self-owned brand, BYD has the money, capabilities, and stance to quickly recruit talented individuals to compete in intelligent driving.

I once heard a senior colleague say that success in intelligent driving ultimately depends on how much you're willing to invest, and that investment comes in the form of money and talent.

Indeed, BYD's ability to stand on the world's top 10 stage may mark the true beginning of its intelligent driving era. We don't know how long it will take for BYD's name to appear on the intelligent driving list, but that day shouldn't be far off.

Two days before the financial report's release, BYD officially announced its collaboration with Huawei in intelligent driving. BYD's FANGCHENGBAO and Huawei's Qiankun Intelligent Driving officially signed a cooperation agreement to jointly develop the world's first exclusive intelligent driving solution for off-road vehicles, to be first introduced in the upcoming FANGCHENGBAO BAO8 model.

At the recent Denza Z9GT launch event, BYD unveiled Intelligent Driving 3.0, featuring the fully self-developed high-level intelligent driving system "Divine Eye." With a wave of its hand, BYD came on strong.

In BYD's financial report infographic, we can see that BYD recruited over 10,000 fresh graduates for its 2024 campus recruitment, with 80% of them in R&D positions and 70% holding master's or doctoral degrees. This once again proves that education opens doors.

After BYD ranked among the top 10 global automakers in sales in 2023, everyone is eager to see if it can surpass itself in 2024.

This aspiration has perhaps become an obsession for BYD fans. Can BYD reclaim its spot among the top 10 global automakers in 2024, and what annual sales volume can it achieve?

According to the China Passenger Car Association, BYD sold a cumulative 1.6071 million vehicles in the first half of 2024, topping Chinese automaker sales and retaining its championship position.

Based on these figures, BYD is likely to surpass the 3.5 million-vehicle mark and potentially even reach 4 million in 2024. Amidst this massive data, not only is the domestic market continuously fueling BYD's growth, but the company is also focusing its gaze overseas.

This year, the EU introduced a series of subsidies for new energy vehicles to slow down China's overseas expansion.

With China's doors wide open, the voyage of new energy vehicles is unstoppable. However, everyone is tacitly aware of the many uncertainties in overseas markets. Currently, BYD's new energy vehicles are present in over 400 cities across 88 countries and regions worldwide.

Leveraging its early commercial vehicle channels, BYD enjoys certain advantages in deploying its passenger vehicles.

However, convincing foreigners to buy in is more complex than expected.

Like many self-owned brands, BYD first penetrated the European market gradually, starting from Southeast Asia and Asia.

Recently, BYD also celebrated the completion of its Thai factory and the roll-out of its 8 millionth new energy vehicle. It's worth noting that rumors persist online that BYD aims to sell 3.6 million pure electric and plug-in hybrid vehicles globally in 2024, with an overseas target of 500,000 units.

Furthermore, BYD has established factories in Hungary, Brazil, and Turkey.

Looking at BYD's factory locations, Turkey sits at the crossroads of Europe and Asia, serving as a bridge between the two civilizations. By establishing factories here, BYD may be seeking a balance between the two regions.

Hungary is located in wealthy Western Europe, while Brazil is one of South America's largest countries. Choosing these locations favors BYD's expansion into European and American markets. New energy vehicles are no longer solely defined by pure electric or plug-in hybrid technology; today, they are increasingly associated with intelligence. We need to educate global consumers about the benefits of intelligent assisted driving. In this digital age, we must convey this energy through our advanced technology.

In this regard, it is BYD's mission as China's leading new energy automaker.

This year, the domestic market has emphasized overseas expansion, with both self-owned brands and new forces gradually laying out their international strategies.

However, faced with the realities of over-reliance on the domestic market, intense competition, and market saturation, self-owned brands are compelled to accelerate their overseas expansion.

To truly become a global automaker, overseas expansion is inevitable and necessary.

During a trip to Malaysia, I frequently saw BYD vehicles on the road. I once asked a driver which Chinese brands were present in Kuala Lumpur, and he confidently replied, "Geely and BYD."

Hearing them recite Chinese brands so swiftly fills me with national pride and concretizes the reality of China's new energy vehicle exports.

Many argue that BYD's impressive domestic sales, reaching nearly 300,000 vehicles per month and far surpassing other automakers, give a sense of "bullying at home." However, overseas expansion requires time, strategic opportunities, suitable regions, partners, channels, and even local factories to provide employment. I believe BYD is diligently preparing to become a truly global automaker.

Turning to products, BYD has been constantly introducing new models this year. Its diverse product line, ranging from budget to luxury vehicles priced up to millions, covers virtually all scenarios.

It's no exaggeration when BYD sales representatives confidently claim that you can find the perfect car at BYD, regardless of your budget—be it from the Dynasty or Ocean series, or even FANGCHENGBAO if necessary.

Of course, if I could afford the Skywell U8, I wouldn't mind parking this behemoth in my garage.

From battery production to passenger vehicles, opportunities arise at unexpected moments. Seizing them requires both luck and preparation.

In 2022, BYD's time machine rolled again as it officially announced the cessation of fuel vehicle sales, making it the first automaker globally to do so. That moment, I knew it was ready.

Since 2022, BYD's monthly sales have soared from tens of thousands to hundreds of thousands, gradually outpacing other brands in the market.

I've heard it said that human civilization progresses because some individuals dare to step out of their comfort zones, embracing boldness, creativity, and bravery. They defy predetermined paths, pushing history forward. Breakthroughs often stem from the incredible feats of a select few.

While a routine life may seem simple, it can stifle thought and turn daily tasks into habits. Yet, the brave and wise are always those who dare to lead the way.

Therefore, I see no reason to envy or slander BYD. Its sales figures and decisive actions speak for themselves. As a leader, Wang Chuanfu's unwavering determination marks the true turning point for this automaker.

In the automotive realm, BYD boasts not only renowned battery technology but also a comprehensive industrial chain encompassing silicon wafers, photovoltaic components, and photovoltaic system applications. Its financial reports also mention "transportation equipment and electrical manufacturing," highlighting BYD's involvement in all aspects of eco-friendly and energy-saving initiatives.

Beyond vehicle manufacturing, BYD creates even more, embodying its true essence.

Recently, Warren Buffett, the so-called "Oracle of Omaha," has reduced his BYD stock holdings several times, cashing out over HK$1 billion. Market speculation suggests that even the legendary investor may have doubts about BYD and the future of new energy vehicles.

However, I ponder that to discredit Buffett's logic with our mundane reasoning would be disrespectful. We cannot fathom his mindset, but what we can observe is BYD's ever-growing performance and its relentless pursuit of luxury and intelligent driving.

Recently, BYD's premium brand Skywell began delivering its U9 sports car, priced at an astonishing RMB 1.68 million. This marks yet another milestone in China's pursuit of the sports car dream.

From now on, BYD's portfolio undeniably includes a "million-yuan brand."

The world loves to categorize things as good or bad, but reality is far more nuanced. The contradictions and relativities of things combine to create a diverse world.

For Wang Chuanfu, BYD's helmsman, those who follow BYD, those who slander it, and those who remain neutral and observe, are all sources of energy, driving him to balance BYD's various facets.

Running a business inevitably entails risks and responsibilities, both warranted and unwarranted. The world's wheel propels us forward, and though we may not know the destination, we strive with all our might along the journey.

Image | BYD