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Our reporter Chen Jingbin reports from Shenzhen

"In BYD's automobile brand matrix, BYD has become an important link between the upper and lower levels, connecting BYD's major brands. Downward, it integrates the resources and support of Dynasty.com, Ocean.com and Fangchengbao; upward, it provides a solid foundation for high-end brands to aspire to. With the continuous expansion of the brand, the number of BYD's directly-operated stores nationwide has exceeded 380, covering more than 100 cities." On August 20, at the "2024 BYD BYD Automotive Technology Day and BYD Z9 GT Pre-sale Conference" held by BYD, BYD Chairman and President Wang Chuanfu shared the development history of BYD with a reporter from China Business News.

Looking back on the growth of BYD, Wang Chuanfu described the process as "hard and tortuous". He revealed that BYD had tried many strategies, but it was difficult to gain a foothold in the market and succeed. "As of the end of 2021, we have accumulated losses of nearly 5 billion yuan over a period of 8 years."

The turning point for Denza came in December 2021, when BYD increased its stake in Denza from 50% to 90%, launching a comprehensive reform of Denza's technological innovation, product updates, and independent operating channels. This series of measures has injected new vitality and development direction into Denza.

Entering the second half of the year, BYD accelerated the pace of channel construction. Based on the existing direct-operated stores, it introduced a dealer model and began to adopt a dual-track channel strategy of "direct sales + dealer partners" to further expand market coverage.

Enriching the domestic luxury new energy matrix with technology

"The phased success of BYD Tang makes us think about how to move forward steadily in the field of new energy luxury cars and achieve more sustainable development. In the current automobile market structure, new energy luxury brands must find their own unique competitive advantages in order to stand out in the fierce competition," said Wang Chuanfu at the press conference.

Wang Chuanfu pointed out, "Traditional luxury brands often rely on the influence of their brand logos, while the core competitiveness of new energy luxury brands lies in technology." It is under the guidance of this concept that BYD continues to promote technological innovation and launched its latest technology platform - Yi Sanfang at this press conference.

The Yisanfang technology platform is the world's first technology platform that can simultaneously achieve three-motor independent drive and rear-wheel dual-motor independent steering, and was first installed on the Denza Z9 GT model. This innovation continues to enrich the matrix of domestic luxury new energy models.

The Denza Z9 GT will be the first model equipped with BYD's technology. Wang Chuanfu said that BYD's intelligent driving technology is already at the forefront of the world.

As of July this year, L2 autonomous driving functions have been installed in more than 3.5 million vehicles, and multiple levels of intelligent driving versions are provided according to different models. The Denza Z9 GT will be equipped with BYD's "Eye of God" advanced intelligent driving system to further enhance the driving experience.

Building a new energy luxury brand is also inseparable from the continuous investment in technology research and development. So far, BYD's cumulative R&D investment has exceeded 140 billion yuan, and nearly 40 billion yuan was invested in 2023 alone, a year-on-year increase of 97%. In addition, BYD has applied for more than 48,000 patents worldwide, authorized more than 30,000 patents, and has more than 100,000 R&D personnel.

Help Chinese brands become world-class brands

Wang Chuanfu said that in addition to increasing investment in technology research and development, all Chinese industries must make good arrangements for high-end industries in order to gain a voice in the world. Only by moving towards high-end can Chinese brands become world-class.

Among them, in BYD's brand matrix, Denza plays a key role in connecting the past and the future. It not only inherits the support of the Dynasty, Ocean and Formula Leopard series brands, but also lays the foundation for high-end brands to look up to. In May 2022, Denza launched its first luxury MPV, the Denza D9. With precise market positioning and leading product strength, the Denza D9 surpassed traditional luxury brands in 2023 and became the annual sales champion in the MPV market.

In recent years, BYD has been continuously improving its layout in the luxury car market. In February this year, BYD's high-end brand Yangwang launched its second model, the Yangwang U9, priced at 1.68 million yuan. On August 16, the first Yangwang U9 customer delivery car officially rolled off the assembly line, marking an important step for BYD in the high-end market.

"Chinese auto brands have great potential in the luxury market," Wang Chuanfu said at the press conference. "Although Chinese new energy vehicle brands have performed well in the domestic luxury car market, they still need to make further efforts in the global market."

He also stressed that China's automobile manufacturing industry has leapt from industrial chain advantages to technological chain advantages. More and more Chinese luxury brands, such as Hongqi, Lantu, Weilai, Ideal, Wenjie and Avita, are gradually emerging in the global market, jointly promoting the diversified development of Chinese automobiles on the international stage. Wang Chuanfu believes that Chinese luxury brands will set off a wave of reform in the global new energy vehicle market.