BYD: The dilemma behind the magic

View the latest market as of November 5, according to statistics, BYD listed in Hong Kong 01211. HK's 53-week stock record, the highest of 88.4 yuan, the minimum of 9.39 yuan. That means that it took less than a year, and its share price turned nearly 10 times times.　　There is a more practical figure: In the past October, BYD sold 46,646 units, a 6% increase from September, compared to last year October year-on-year growth of 91%, of which F3 broke 30,000 vehicles.　　But the question now is, in China's new energy vehicle policy impetus is still so big now, this explosive, new energy concept of the star company, can continue to play "Rubik's Cube", overcome all kinds of disadvantage, to achieve the consumer, the market, the government and shareholders of it all fanatical imagination? The new energy dilemma, Mr Peng Wei-wen, director of the International Research Division, has made it hard to predict BYD's 1211. HK's future share price. "The market has a very positive outlook for the future profitability of BYD's hybrid cars and electric cars, which has spurred stock prices to continue to spike, and the target price is unpredictable because there is no comparable car stock in the market." "Peng Wei's new view represents the real reason why overseas funds are in favor of BYD: the profitability of electric-vehicle products is worth looking forward to. BYD in the capital market seems to have a magical magic, almost as long as the edge with BYD, you can ride a roller coaster.　　Shares in the company, which have teamed up with BYD to develop new energy vehicles, have risen 65.8% per cent in nearly three weeks. However, as BYD's BYD, the timetable for the sale of petrol-electric hybrids to private consumers has been pushed back.　　From the first half of the year to the third quarter all the way back, this reporter recently from BYD spokesperson, sales company deputy general Manager Wang Jianjun Department learned that the formal sale of private users of the plan will start from the four quarter of this year. His explanation for the delay, he explains, is that the company is currently studying how the subsidy policy is being implemented, and how consumers can get subsidies from the government after buying it is a very practical question. "Our company is going through the process of treating itself as an ordinary consumer and how long it will take to get the subsidy," he said.　　"That is to say, the first batch of 37 BYD sold for government procurement and large company group purchase." BYD is BYD's first new energy vehicle, the latest in the Ministry of Industry's "New Energy recommended Catalog", it is also the first batch of only one by one recommended cars. But for a car that has been on the market for 11 months, the results of 37 vehicles are not satisfactory. "Government procurement has also been active recently, including sales of large companies. Wang Jianjun said. In the long run, BYD's sales performance will be the touchstone of the market vision.　　If successful, BYD's share price will be "limitless", if not, will be a big setback to market confidence. The significance of the new energy vehicles to BYD has been self-evident, the active launch of the A-share return plan also revealed BYD's big investment in new energy vehicles. At a special meeting of BYD shareholders held in September, theThe China Securities Regulatory Commission to apply for the issue of A shares listed in the Shenzhen Stock Exchange resolution, and said that the proceeds are mainly used to develop new energy vehicles and related research and development, including lithium-ion battery production, Shenzhen Automotive research and development production base project and solar cell two-year project.　　"The Barbarians at the door" the performance of BYD on the traditional petrol car is also one of the strong proof that the capital market is full of confidence.　　According to data from the FIA, BYD became the fastest-growing auto company this year, producing 291,000 cars in January-September, up 170% year-on-year, of which 44,100 were produced in the month of September. In 2003, BYD formally acquired XI ' an Qinchuan automobile and entered into the field of automobile manufacture and sales. Although entering the auto industry is only 5 years, but the annual growth rate of 100% to deduce the automotive industry, "Shenzhen Speed"; In 2006, BYD relied on only one F3 to achieve 50,000 sales, 2007 sales of 100,000 vehicles, the year-on-year increase of 100%; 2008 Despite the impact of the global financial crisis　　, but sales are still more than doubled in 2007, which has to be said to be a miracle in China's auto industry.　　The ferocity of the Dark Horse BYD's marketing strategy has made many people "askance". Mr. Han, a veteran car marketer, saw a scene in Jinan: BYD's F3-listed 4S shop is on the opposite side of Toyota, and the banner is: to be the corolla of China (Toyota's best-selling model). At that time, the car people in Jinan flocked, the scene is lively, abruptly from Toyota hands to rob a lot of consumers. "The shape is very similar, do not look at the car to see the difference at all, and the price is tens of thousands of cheaper than the Corolla, which has a great appeal to consumers." In this way, BYD began a battle with its rivals with a "barbarian at the door". Such examples abound: simply divide, BYD's marketing area divides into north and south two big blocks. Over the past two or three years, sales in the South has always been superior to the northern region of the background, North District recruitment of the new Sales Director of the initiative to write "Blood Junlingzhuang", not successful is gone.　　In such a desperate attack, sales in North district really overtook the south at the end of the year.　　Such tactics may seem simple and crude, but in the short term it works well.　　China's independent auto analyst, Jia Xin, even thinks BYD was scheduled to be China's first in 2015, and it now looks like it can be achieved 2-3 years in advance. According to BYD's relevant people: "From long-term development strategy, the future proportion of exports will account for 50% of total sales." BYD's exports will have a significant breakthrough next year. According to the source, the 2009-year plan to export 40,000 vehicles, based on last year doubled. 2009 BYD's overseas main battlefield is in the Middle East, Africa and other emerging markets.　　The next target for overseas expansion is Israel and the European market.　　Seven-inch short plate in the face of BYD's many problems, whether for the traditional car or new energy vehicle development, all need to win the risk. Traditional petrol vehicles are still the foundation,Andy insiders admit that, including to the dealer's profits, BYD car's gross profit margin of more than 20%.　　To ensure that this piece of profit is maintained, it is necessary to obtain more recognition on the brand. But as a member of the independent brand, the brand power is still BYD's biggest short board. To get rid of other independent brand competitors, and the joint venture to rob the market, more cost-effective BYD to achieve a brand breakthrough in order to obtain a higher premium. The high-end boutique car G3, which was just listed at the end of October, can be seen as a useful attempt to move up the brand. Wang Jianjun Tan Chen: "We are among ordinary consumers is a low end of the logo, brand strength or very weak, in the current stage of operation, we must give up a considerable profit to accumulate brand." "But as we all know, brand building is far from the work."　　Now, sales success, has only been a number of success, whether BYD can break through the brand itself, the challenge is next year's top. In addition, new energy vehicles are indeed in dire need of proof.　　As a result, BYD urgently needs two models of car success. First of all, BYD in the domestic market, the smooth opening of new energy vehicles in the private consumer market. In addition to the subsidy policy can make up for the adverse situation of high car prices, charging stations, and cooperation with the State Grid must be advanced as soon as possible. "We are negotiating with the National Grid and the southern grid. Wang Jianjun said. In fact, do not do a good job in the construction of electric vehicle supporting facilities, for the vast number of consumers, electric cars will always be "mirror month."　　BYD is also hampered by government departments. Second, Mr Wang promised Wan's minister in 2010 to export E6 pure electric cars to the United States during the Shanghai Auto Show, and this reporter also obtained confirmation from Wang Jianjun. "The timetable for E6 exports to the United States next year is unchanged. Wang Jianjun revealed that the company plans to first select a special area in the United States to test water, for government agencies, utilities and other corporate clients to launch hundreds of E6 electric vehicles, each priced slightly more than 40,000 U.S. dollars.　　But a test-drive E6 Industry said that he had a bumpy test drive, there may be problems with the computer control technology. BYD certainly does not have the obvious flaw in the car into the U.S. market, but it does not have much time left.　　In the past 6 years, BYD has at least invested more than 1 billion yuan in electric-vehicle projects, not to be missed. China's first car to enter the U.S. market, will be BYD pure electric car E6? The whole world will wait and see.