On November 23, some netizens broke the news that a BYD Qin Pro EV caught fire in an underground parking lot in Beijing, and there was no serious explosion at the scene. However, through the comments made by the owner on social media, it can be seen that the scene at that time was very horrible and almost threatened the life of his family.
Strangely, after this incident, many media were washing the floor for BYD. After reading it, I probably learned that I was telling everyone that although BYD Qin Pro EV caught fire this time, it was not a blade battery.
As we all know, around July this year, BYD announced that it would use blade batteries in all directions, which means that at present, the batteries on electric vehicles under BYD brand have all used blade batteries.
Blade battery can also be regarded as BYD’s bottom line in the field of electric vehicles. If there is a problem with the blade battery, it will be a disaster for BYD.
That’s why it happened. When BYD’s car caught fire, a lot of media came out to wash the floor for BYD. Most of the comments pointed out that this car was not equipped with blade batteries.
A fire is a fire. Anyway, this is a BYD.
For any brand, it is a very irresponsible attitude to start shirking responsibility once there is a problem. BYD, as the first independent automobile brand in China to set foot in the electric field, has good research and development capabilities and technical reserves. The vehicle that caught fire this time was indeed listed in March 2019, but it does not mean that BYD has reason to shirk responsibility.
At that time, this BYD Qin ProEV was equipped with ternary lithium battery. As we all know, the battery density of ternary lithium battery is about 70% higher than that of Ferrous lithium phosphate, and BYD had to give up lithium iron phosphate battery at that time for various reasons.
In fact, as early as the first generation of BYD Tang, we can see that BYD has actually realized the disadvantages of lithium iron phosphate battery. The first generation of BYD Tang, which was listed in 2015, was equipped with lithium iron phosphate battery, and its curb weight reached 2.22 tons. In fact, its pure electric cruising range is only 60 kilometers, which can be said to be just passing the passing line.
In the modified model of 2017, BYD directly used ternary lithium battery, and the cruising range reached a more ideal 80km, and the top model even reached a pure battery life of 100km. Similarly, in the same period of BYD Song, we also saw BYD’s transition from Ferrous lithium phosphate to ternary lithium battery.
Although BYD now has a blade battery, BYD had no choice but to compromise the use of ternary lithium batteries because of the inherent shortcomings of Ferrous lithium phosphate. However, not all brands were able to control ternary lithium batteries, so the opening scene appeared. BYD Qin Pro EV, which was listed in 2019, caught fire in the underground garage, which almost caused casualties.
The author believes that no matter how to wash the floor, the fire has become an established fact, and any resistance to the facts is powerless. This kind of sophistry is simply untenable.
Judging from the current market performance, BYD’s market sales are gradually improving, which is certainly worthy of recognition. However, enterprises need to take responsibility if they want to get the recognition of users. If they start to argue and start sophistry after problems appear, then this is the beginning of a company’s decline.
At present, although BYD’s sales in the market are increasing, it is worth noting that its sales are mainly below 300,000. In the era when new forces are making cars, it is obviously impossible to achieve higher achievements in the market without high-end products.
According to the financial report in 2020, BYD’s total annual revenue is 156.6 billion yuan, which is quite gorgeous, with an increase of 22.59% year-on-year, but don’t forget that BYD’s business fields are very extensive.
At present, BYD’s business areas are mainly distributed in four major areas, namely, automobile, rail transit, new energy and electronics. From the financial report in 2020, BYD’s revenue in the automobile field is 84 billion yuan, accounting for 53.6% of the total annual revenue. It can be seen that BYD’s current automobile business accounts for half of its revenue, but the profit distribution is unknown.
This year, Li Yunfei, general manager of BYD’s brand and public relations division, revealed at the senior executives’ conference that the average bicycle price of BYD at this stage has reached 151,700 yuan, which is much higher than that of other domestic independent brands. However, considering the financial report and sales volume in 2020, the total revenue of BYD’s auto business segment in 2020 is only 59.862 billion yuan, which is obviously different from the total revenue of 156.6 billion yuan.
It can be seen that BYD’s profit source does not come from the automobile sector, and it can even be boldly predicted that although BYD’s average bicycle price is high, there is a great possibility of not making money. At the same time, BYD still holds state subsidies for new energy vehicles, and its failure to reduce costs may be BYD’s biggest achilles heel.
In fact, BYD’s automobile field actually has a very wide coverage, with two series of passenger cars and commercial vehicles, covering seven conventional fields and four special fields, and our common private cars are only one of these eleven fields, as well as ten fields including taxis, urban public transportation and road transportation.
From this, we can analyze that in 2020, BYD’s total revenue in the automotive sector will be 59.862 billion yuan, which belongs toPassenger cars and non-operation.The revenue in the classification is very likely to be less, and overall BYD’s performance in profitability is relatively poor.
From the fire incident of a product to the current situation of BYD’s whole enterprise, it is not difficult to see that there seems to be a greater risk behind any small problem. This incident tells us that although BYD is booming in the automobile circle, it is an ironclad fact that it relies on other pillar products to maintain the situation. How to achieve positive growth through the automobile sector is what BYD needs to do at present.
