In 2023, China's new energy vehicle (NEV) production, sales, and exports reached new heights. How to consolidate and expand these advantages? At the 2024 China EV 100 Forum, BYD President Wang Chuanfu predicted that the NEV penetration rate will soon surpass 50%, and could potentially go even higher in the future. Here are 3 key takeaways from his speech: First, traditional fossil fuel vehicles are on the decline, and the penetration rate of new energy vehicles will soar past 50%.

Since Karl Benz invented the first automobile, the century-old automotive industry has never faced such a "major change" as today. Many people are aware that new energy vehicles have already surpassed traditional fuel vehicles in terms of power, quietness, and intelligence. The market share of traditional fuel vehicles will gradually shrink, but no one expected it to be so rapid. BYD President Wang Chuanfu stated that as of March 2024, China's new energy vehicle (NEV) penetration rate had exceeded 48.2%. It's worth noting that the NEV penetration rate in China was 31.6% in 2023. The increase from 31.6% to 48.2% occurred within just a few months. Based on this rapid increase, the NEV penetration rate is likely to surpass 50% soon, and the future holds even greater potential for growth.

Backed by its leading technology, advantages in the full industry chain cost, and substantial sales volume, BYD surpassed the 3 million sales mark in 2023, reaching 3,024,445 vehicles. In 2024, the rapidly expanding NEV penetration rate will certainly contribute to BYD's continued dominance in sales. Let's stay tuned to witness the company's upcoming success.

It's worth mentioning that academician Ouyang Minggao pointed out again that plug-in hybrids include all the functions of fuel vehicles, plug-ins, series-extended vehicles, and pure electric vehicles. They are truly "all-around players". BYD DM plug-in hybrids are more fuel-efficient than Japanese models and are easier to drive than German models. They are the first choice for fuel vehicle users to switch to new energy vehicles.

Secondly, the second half of intelligence is shifting gears and accelerating. The intelligent integration of the whole vehicle is the direction of development.

# After the traditional fuel vehicle race was broken, China's new energy automobile industry has initially formed a leading edge. Zhidianchexun believes that what can truly lead the Chinese automobile industry and challenge joint venture brands lies in intelligence, which will push the fundamental transformation of the century-old automobile industry.

BYD President Wang Chuanfu believes that electric vehicles are not only stronger and more fuel-efficient than fuel vehicles, but also more intelligent than fuel vehicles. This is the innate advantage of electric vehicles. Only on the basis of electrification can the high-rise building of intelligence be built. In the future, the intelligent integration of the whole vehicle is the direction of development.

In line with this development strategy, BYD has just released its whole-vehicle intelligence strategy in early 2024, featuring the XIDREAM architecture as its core. This strategy has led to the development of a series of technologies including whole-vehicle intelligence, intelligent driving, intelligent parking, and intelligent cockpit, breaking the inherent framework of vehicle control, intelligent cockpit, and intelligent driving, and achieving efficient integration of electrification and intelligence. More intelligent BYD vehicles are on the horizon.

Thirdly, world-class brands can only be created when Chinese auto brands work together.

Behind the booming new energy vehicle market lies fierce market competition. EV Observer has noticed that since the second quarter of last year, market anxiety has intensified in some auto companies, leading to direct public attacks, which has become an unfortunate event in the development history of China's new energy vehicle industry. Smart folks lift each other up, showing respect; dumb folks stomp on each other, degrading themselves and others. The market competition among China's new energy vehicle companies has long been a "coopetitive relationship." As Li Yunfei, manager of BYD's brand and public relations, said, "Let's work together, not against each other." Only by joining forces can Chinese auto brands create world-class powerhouses.

At this critical juncture when we're breaking the "blockade" of joint ventures and leading the smart electric vehicle revolution, we believe it's acceptable to compete in terms of technology, products, marketing, service, and price, but we must not cross the line into "internal strife" and "dirty tricks." We propose that Chinese auto brands join hands, go on the offensive together, and conquer the commanding heights of the global automotive market.

Commentary

As the "window of opportunity" for the rapid adoption of intelligent, new energy vehicles opens in 2024, the competitive landscape is set to undergo major changes. This is a valuable window of opportunity for Chinese automakers. We encourage BYD and other Chinese automakers to refine their internal capabilities continuously to ultimately achieve a quantum leap in quality, enhancing their competitiveness and paving the way for future success.