BYD will launch its fifth-generation DM-i system in 2024.

Recently, according to related media reports, BYD Chairman Wang Chuanfu shared insights into the brand's current status and future plans during a company conference call. It was revealed that BYD currently has 700,000 units in hand as orders, with a new-vehicle delivery cycle of 4 to 5 months. Meanwhile, the newly launched Seal model has already entered mass production; however, due to the ongoing pandemic and power restrictions, delivery pressures remain significant. Looking ahead, BYD plans to introduce its fifth-generation DM-i system in 2024.

In terms of development planning, BYD will introduce advanced intelligent driver-assistance systems in its high-end models launched in 2023. A comprehensive suite of driver-assistance solutions will be rolled out, featuring integrated hardware and software deployments. The company will also maintain its long-term product leadership by continuously driving innovation in technology. Additionally, BYD plans to launch a premium brand worth over one million yuan in 2023, equipped with several unique cutting-edge technologies and priced accordingly at around one million yuan. Meanwhile, the fifth-generation DM-i system is set to debut in 2024. Looking ahead at market trends, Wang Chuanfu predicts that China’s overall new-energy vehicle sales in 2023 will likely reach between 9 million and 10 million units. BYD, meanwhile, aims to produce at least 4 million vehicles, with its battery, motor, and powertrain semiconductor components either supplied internally or produced in parallel—and even in greater volumes if needed. As for battery supply, while most production capacity will continue to serve internal needs in 2023, the proportion allocated to external customers will remain relatively low. However, this ratio is expected to increase significantly in 2024, as BYD ramps up its efforts to meet growing external demand.

Additionally, in response to the upcoming reduction in subsidies for new energy vehicles next year, BYD anticipates that its annual raw material procurement costs will decrease by 3-5% due to the growth in sales volume. This projected 5% cost reduction next year is expected to fully offset the impact of the subsidy phase-out. In terms of profitability, once production capacity is fully unleashed, the depreciation and amortization costs per vehicle will decline, leading to a gradual monthly increase in profit margins. Meanwhile, as BYD continues to expand into overseas markets, Europe will become one of its key target regions. On the U.S. front, however, the latest subsidy legislation reflects the U.S. government's lack of confidence and appears to be a discriminatory policy. Should this approach persist, BYD may place greater emphasis on other international markets while carefully considering a temporary withdrawal from the U.S. market altogether.

Editor's Perspective: From Wang Chuanfu's words, one can clearly sense his unwavering optimism about BYD's future growth. The development of new energy is set to become China's next pillar industry, poised to replace real estate as the economy's driving force. As China's most promising new-energy vehicle manufacturer, BYD is well on track to surpass Tesla—whether sooner or later is simply a matter of time.

Translated from Sina Auto

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