According to Jiemian News, the research department of UBS Securities disassembled the Chinese electric vehicle product BYD Seal for the first time, and found that Seal has a strong cost advantage in the European market. La (Model 3) and Volkswagen are 15% to 35% lower than their competitors in the same class. UBS predicts that by 2030, the share of Chinese auto companies in the global market will jump from the current 17% to 33%, while traditional Western automakers will suffer a greater blow, and the global market share will drop from the current 81% to 58%. %, especially in the mass market segment between €20,000 and €40,000.
▲ Picture source BYD official blog
According to reports, BYD Seal’s cost advantage mainly comes from two aspects: one is China’s local production and a complete domestic electric vehicle supply chain, and the other is BYD’s vertical integration system and highly integrated components. About 75% of the parts of BYD Seal are produced by BYD itself, and the ratio of self-made parts is higher than that of Tesla produced in China and Volkswagen produced in Germany. This vertical integration not only improves vehicle profit margins, but also enables greater integration of engineering development. Take the blade battery, which occupies the highest cost of the whole vehicle, as an example. On the one hand, its high integration reduces the cost by about 20%, and on the other hand, it makes the battery pack thin enough to leave enough space for the whole vehicle.
BYD Seal has also adopted business decision-making trade-offs that are more applicable to Chinese consumers. In terms of autonomous driving, BYD Seal focuses on simple and practical solutions, and the cost is only 3,000 CNY; while in the car-machine system, BYD Seal has 5G functions.
At this year’s Munich Auto Show, BYD Seal was officially launched in Europe. The two versions are priced at 50,000 euros and 44,900 euros. As of now, BYD has five models on sale in Europe.
UBS believes that traditional mass-market manufacturers are at the greatest risk of structural market loss due to intensifying competition from Chinese automakers and Tesla. UBS has downgraded the shares of Renault and Volkswagen from “neutral” to “sell”, directly citing the threat posed by Chinese competition. Analysts believe that Volkswagen is the company “most negatively affected globally by the rise of Chinese automakers.” In order to maintain its market share in China, Volkswagen has reached a historic cooperation with Xpeng Motors in China. However, analysts believe that cooperation between the two parties carries high execution risks.
