As an industry with high added value, long industrial chain and high technical content, automobiles have many development models around the world, which are generally divided into three types: horizontal multi-brand development, vertical industrial chain development and comprehensive fixed-point development. Today, we will take a look at the development model of Chinese automobile companies through an analysis of BYD.
Enterprise expansion map
The first type is the most visible horizontal multi-brand and multi-business development . In this regard, most of the German and American automobile companies are. These large companies have multiple car brands and occupy various market segments. For example, Volkswagen in Germany has many brands such as Volkswagen, Audi, Porsche, Skoda, Bugatti, etc., and General Motors in the United States has many brands such as GMC, Chevrolet, Buick, and Cadillac. China's Geely Auto can be regarded as this model.
Gely Holding Group Business Constitution
The second type is the vertical development model for the upstream and downstream of the industrial chain . This type of representative are Japanese and Korean automobile companies; for example, Japan's Toyota Motor has complete vehicles (Toyota, Lexus, Daifa), parts (Toyota Auto Parts, Toyota Textile, Aisin Seiko, Nippon Denmark, Toyota Forging), and car supporting facilities (Toyota Warehousing); and South Korea's Hyundai Motor also has complete vehicles (Hyundai, Kia), parts (Mobis, Hyundai Mos), and others (steel, shipbuilding, electronics and electrical appliances). SAIC Group, GAC Group, SAIC-GM-Wuling, Changan Group, BYD Group, and China National Heavy Duty Truck Corporation can be regarded as this model.
▲SAIC Group Business Structure SAIC Group Business Structure
The third type is comprehensive and fixed-point development. Most automobile companies have this approach, the core is the vehicle business, and expand some core components to the outside, including engines, transmissions, interiors, lamps, etc. At present, the main passenger car manufacturers list the self-made engines and transmissions as their core competitiveness. Chery Automobile, Great Wall Motors and a number of new car-making forces should all be considered this model.
Great Wall Motors brand framework
BYD Group business framework
This time we focus on BYD's vertical development model .
We all know that BYD Group started out in electronic manufacturing and entered the field of automobile manufacturing by acquiring Shaanxi Qinchuan Automobile in 2003. Since then, it has continued to expand its businesses such as battery and electronic manufacturing. Now it has formed four major businesses: automobile manufacturing, rail transit (cloud rail), new energy (battery + energy storage), and electronic manufacturing. In addition, there are marginal businesses such as mask manufacturing (the world's number one), automobile services.
BYD Group's business composition
Next, we analyze the specific business composition of BYD Group one by one.
is the first group business. BYD Group's company name is BYD Co., Ltd., which is a listed company in Shenzhen Stock Exchange and the Hong Kong Stock Exchange. In 2022, BYD Group entered the 2022 Fortune 500 list, and its strength cannot be underestimated. The 2021 turnover excerpt from Fortune magazine is US$32.758 billion. According to the financial report of BYD Co., Ltd., BYD achieved operating income of 216.142 billion yuan in 2021 (it can be seen that the US dollar above: the RMB exchange rate is approximately 6.59), and the net profit attributable to shareholders of listed companies was 3.045 billion yuan.
BYD entered the top 500 list
followed by BYD's automotive business. BYD Auto business has two operating entities, namely BYD Auto Co., Ltd. (formerly Shaanxi Qinchuan Automobile) and BYD Auto Industry Co., Ltd. (formerly Hunan Sanxiang Bus). The financial report shows that BYD Auto sales exceeded 600,000 vehicles in 2021, with a turnover of approximately RMB 112.489 billion in revenue from automobiles, automobile-related products and other product businesses.
Automobile business includes vehicle manufacturing, automotive electronics, automotive parts, etc.
In addition, due to the accumulation and growth of BYD's automotive business in the past two years, the products have been divided into two sales networks: Dynasty.com and Ocean.com.
BYD Han, Tang, Qin, Song and Yuan dynasty network
BYD dolphin seal destroyer and Song PLUS models are listed as Ocean Network platform
. At the commercial vehicle level, BYD's classification is even more interesting. Pure electric buses, pure electric trucks, pure electric special vehicles (sweepers, forklifts, concrete mixers) and other products are also quite rich. Among them, pure electric buses are sold to more than 50 countries and regions around the world and more than 300 cities.
BYD commercial vehicle business line
BYD's many parts in the automotive field are also included in the scope of the automotive business, including the recently well-known blade batteries, DM-i power systems, automotive lamp systems and many automotive controllers. In other words, in addition to conventional car bodies and powertrains, BYD has more self-made parts such as power batteries, headlights, and automotive controllers than ordinary car companies. Data says that the proportion of self-made parts in BYD Han EV exceeds 40%, while the proportion of general car companies is only 10 to 21%. It is precisely for this reason that we list BYD as a benchmark for vertical development.
BYD's homemade automotive electronic equipment
Data shows that BYD is one of the few car manufacturers in China that make homemade ESP systems, and has also brought down the prices of Bosch, Delphi and Japan Denso through its own efforts!
BYD's self-made OneBox system, which is our common ESP body electronic stability system,
The automobile business has increased significantly in recent years. In 2021, the sales growth rate reached an exaggerated 218.3%, and the total business growth rate was 33.93%. In addition, due to BYD's large proportion of parts self-made, the automobile business accounted for more than 52% of the group, and the automobile business also drove the group's business to have a significant pull, which also led to the rise of BYD shares. It is precisely because BYD's automobile business accounts for more than 50% that we call it an automobile company.
BYD is the first car company in China to enter the semiconductor business
, followed by BYD electronics business . BYD Electronics' main business in mobile phone OEM, mobile phone parts, assembly and other product businesses, the corresponding business revenue is approximately RMB 86.454 billion, and the corresponding business accounts for 40% of the group's turnover.
BYD mask is produced by BYD Electronics
BYD Electronics’ car machine application case
BYD car Pad is produced by BYD Electronics, and this set of car machines is also supplied to the outside world at the same time.
The third part is secondary rechargeable batteries and photovoltaic business , that is, the battery series business, corresponding revenue is approximately RMB 16.471 billion, and the corresponding business accounts for 7.62% of the group's turnover. This part of the business is actually a more valuable business. With the development of large-scale application of solar panels, corresponding energy storage problems have also surfaced, and BYD happens to have good technical reserves in both aspects.
BYD solar cell version application case
It can be seen that BYD Group is a relatively high cross-border enterprise in the Chinese automotive industry, and it is also based on its own competitive advantages in industrial development. Through in-depth research and development of electronics and electrical appliances, it has embarked on a different vertical development path in the automotive field.
OK, judging from the current situation, BYD has taken the right path. I hope that more and more domestic cars can study technology like BYD, and achieve overtaking in our automobile industry through technological upgrades!
© All rights reserved, reprinting will be investigated. Toutiao @What's going on in Automobile Manufacturing First published on Toutiao, the picture is excerpted from the brand's official website. If there is any inappropriate content, please correct it.
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