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recently, the bicycle profit rankings of mainstream car companies in the first half of 2024 were released. among the domestic mainstream listed car companies, the top ten bicycle profits are great wall, geely, ideal, byd, cyrus, jiangling motors, baic group, and saic group, changan automobile, and guangzhou automobile group.

such a ranking will surely surprise many people. you must know that under the current general trend of new energy, byd's market performance can be said to be outstanding. in the first half of the year, byd sold more than 1.6 million new energy vehicles, a cumulative year-on-year increase of 28.46%, nearly 550,000 more than the second-ranked chery automobile. compared with the eye-catching sales data, byd's bicycle profits are quite satisfactory.

obviously, under such a strong market performance, the profit of the bicycle is only 8,450 yuan, which seems a bit confusing. so, where did byd spend its money? let’s explore it together today.

1. market profit

in fact, there is no doubt about byd's cost control strength. the moat in the technology and industrial chain is deep enough. it has the advantage of integrating "suppliers" and "original equipment manufacturers" and has the right to set the final price.

however, byd did not choose to expand bicycle profits. instead, it chose strategies such as "increasing volume without increasing prices" and "increasing distribution and reducing prices" to capture more market share with more cost-effective prices.

for example, byd has replaced traditional lead-acid batteries in all its plug-in hybrid models and switched to standard 12v lithium iron phosphate starting batteries. compared with traditional lead-acid batteries, the cost of lithium iron phosphate starting batteries is much higher, but the car owner's experience is also fully upgraded, and there is no need to worry about lifespan, power loss, or the need for power rescue.

under this strategy, the price of the domestic family car market has indeed been "beaten down" by byd. under the slogan of "same price for gasoline and electricity" last year, a series of championship-edition models were launched, which can be said to have swept the household market with a price of less than 200,000 yuan. this year, thanks to the sharp drop in the price of upstream materials for lithium batteries and the reduction in battery costs, byd launched the honor edition series of products, taking the lead in firing the first shot of the price war. among them, the strategy of "lower electricity than oil" quickly caused a shock in the entire industry, and other brands were forced to follow suit.

you must know that under the general trend of new energy, the domestic automobile market has begun to gradually get rid of the traditional "three major items" and the price system anchored by joint venture brands. this is the advantage and way out for domestic brands. therefore, market share is currently more important than short-term profits, and major brands will also adopt a "price-for-volume" strategy. after all, they will be eliminated if they cannot gain a firm foothold. therefore, the price level of the entire domestic automobile market has also returned to a more "reasonable" range, and consumers have also benefited from this.

2. r&d investment

obviously, byd's "leading" does not rely solely on price, but also on innovation and technology. you know, among the more than 5,300 a-share listed companies, byd's research and development expenses in the first half of 2024 ranked first, reaching 20.2 billion yuan, an increase of 42% over the same period last year. this figure is about 10% higher than the net profit in the same period. 6.6 billion yuan. this means that byd not only invests all the profits it obtains from the market into new technologies, but also spends its own money to continue to polish its products and feed back users.

among domestic car brands, byd's r&d investment far exceeds that of other car companies. up to now, byd has applied for more than 48,000 patents worldwide, including more than 30,000 authorized patents. in terms of talent reserve, byd currently has nearly 110,000 technical r&d personnel among its 900,000 employees, making it the car company with the largest number of r&d personnel in the world.

it is the emphasis and continuous investment in technology research and development that has enabled byd to develop its efforts in the field of new energy and develop blade batteries, dm-i super hybrid, e-platform 3.0, ctb battery-body integration, yi sifang, and yunnan. and other new energy technologies to surpass traditional fuel vehicles.

summary

in the era of fuel vehicles, it is difficult for chinese brands that started late to surpass overseas brands in areas such as engines and gearboxes. therefore, they are often "stuck" in technology and cannot compete with overseas car companies in the international market. it may break the huge profit monopoly of joint venture car companies.

byd has established its own "technical barriers" through its vertical integration strategy, supply chain cost control capabilities, and cost reduction and efficiency improvements brought about by technological innovation, and ultimately returns to the market through high-quality and low-priced products.

it can be said that the profit of the bicycle is only 8,450 yuan, which is "deliberately done" by byd. its purpose is to use technological innovation as a driver to balance the relationship between product prices, corporate profits, and market size. i believe that by adhering to the development concept of "technology is king, innovation is the basis", byd will promote high-quality development of the entire industry and help chinese brands have stronger market competitiveness! what do you think about this? welcome to follow "vehicles without borders" and leave a message in the comment area below to share your views on byd bicycle's profits.