BYD, a new-energy car company, actually has a traditional car business as well, albeit a small part of it. After the company announced its June sales figures on Monday, analysts believe its full transition to new energy vehicles (NEVs) is about to be realized.
BYD sold 49,765 passenger cars in June, up 52.5 percent from a year earlier and 10.2 percent from the previous month.
Of the total, 40,116 new energy vehicles were sold, up 207.1 percent year-on-year and 26.6 percent from the previous month. It sold 9,649 fuel vehicles in June, down 50.7 percent year-on-year and 28.5 percent from the previous month.
Among new energy passenger cars, BYD sold 20,016 units of its pure electric model in June, up 102.0 percent year-on-year and 7.0 percent from the previous month. It sold 20,100 units of plug-in hybrid models, up 536.7 percent year-on-year and 55.0 percent from the previous month.
In terms of sales structure, BYD's passenger vehicle sales in June were down 10.5 percent from the previous month for fuel models and up 11.7 percent to 40.4 percent for plug-in hybrids, which together with pure-electric models accounted for 80.6 percent of BYD's sales, analysts at Huaxi Securities noted in a research note on Tuesday.
Among plug-in hybrids, the Qin PLUS DM-i provided the core driver for the company's new energy transformation with more than 100,000 orders on hand and a 67.3 percent growth rate from the previous month, the report said.
"We believe that this month's sales figures are ample evidence of the company's forward-looking and precise layout of plug-in hybrid technology and the successful landing of the commercial rollout and that the company's full transition to new energy vehicles is about to be realized," the report reads.
With the company's delivery acceleration from the DM-i dedicated blade battery capacity climb in July and August, as well as the release of the facelifted Han model in July and the Han DM-i model during the year, BYD is expected to start a new sales cycle, the report said.
The optimization of structure and the rapid increase in capacity utilization are expected to bring the company an inflection point improvement in integrated gross profit and scale effect, the report said.
Benefiting from the sustained boom of the new energy vehicle industry and the comprehensive advantages of blade batteries in safety, efficiency, and cost, the company accelerated its investment in blade battery capacity expansion in 2020 and 2021.
In response to the unique operating conditions of DM-i, the company has also launched a special blade battery for super hybrid models, which has smaller power, slightly lower specific energy, higher specific power, and more frequent charging and discharging than EV model batteries, while retaining the characteristics of blade structure and safety.
In addition, the company's first sedan Dolphin built on the E3.0 platform is expected to hit the market in the third quarter, the report noted.
The model is positioned as an A0-class two-box pure electric vehicle, which is expected to create the most cost-effective entry-level pure electric vehicle, the report said.