Lu Tian, general manager of BYD Wang Chao. In an exclusive interview with Easy Car-Auto Production Network, we interviewed the sales department of Easy Car.
Lu Tian said that when the new energy vehicles completed the change of permeability in the past ten years within one year, this speed can basically prove that the market segmentation solved the problem of users' understanding of new products, and the new energy vehicles moved from the original policy-driven to the real market-driven.
In this context, Lu Tian judged that the fuel vehicle market will be more difficult next year. "When I was a student, I was proud to use Nokia. Overnight, I opened my eyes and closed my eyes. The brand seemed to suddenly disappear, followed by a smart phone. "
Regarding BYD's next road, Lu Tian believes that BYD is moving towards the annual sales scale of 2 million vehicles. As the independent brand of China automobile market has not reached this level in the past, BYD can no longer cross the river by feeling the stones, and needs to do more thinking and exploration on its own.
The following is the interview record.
Automobile production: This year is the first year of BYD brand, with multi-brand development. Please introduce BYD's multi-brand strategy and related situation.
Lu Tian: BYD brand. In 2022, we have two series: Dynasty and Ocean. Dynasties are named after Qin, Tang, Song, Yuan and Dynasty, and there will be more in the future. Our mixed and pure electric products include these. In the ocean, we distinguish Dmi by marine life plus warship series, and by power system, which is super hybrid plus pure electricity.
At the same time, Tengshi was re-launched in June this year at 5438+ 10, positioning itself as a high-end luxury. At present, the first car is Tengshi D9, which is a luxury business MPV.
By this year 1 month, 65438+ 10/5, we have officially appeared the brand Looking Up, which is the high-end brand we are currently positioning.
At the same time, we will launch a series of brands in market segments one after another next year.
In this way, BYD's brand structure has formed two cornerstones of BYD's brand, namely, dynasty and ocean, and then to the leap of luxury and high-end, and then to the higher-end look-up series, with millions of levels, equipped with BYD's innovative technology, including power system. At the same time, in market segments, we launch new brands, so that from BYD brand to hope, to Tengshi, and then to the new brand structure of market segments, BYD is probably the market of A-class, B-class, C-class and D-class cars, including the China market and even the global market, and we are probably moving in this direction.
Automobile sankei: It is reported that BYD will launch a new car under Dynasty to fill the market gap in the lower price range. Is this to reduce the dimension and crack down on those small electric vehicles that are constantly reducing prices?
Lu Tian: Wang Chao's position. Com should be slightly different from the ocean. We may consider developing in this direction in the future, but there is no accurate news yet. In the future, Wang Chao. Com will cover the whole industrial chain and products of A, B, C and A0, from cars to SUVs, and MPV. The power system will be equipped with pure electric and super hybrid systems, plus BYD's CTB technology, blade batteries and so on. We want to develop it, but we are considering this product at present.
Automobile production: Both Wangchao.com and Haiyang.com are comprehensive sales networks, and the scale, price and models are almost the same. If you are a consumer, how can he tell which product of these two networks is what he wants?
Lu Tian: The whole series of products of our dynasty are luxurious, including the series of our national tide. You can hear it from the name, for example, Qin ruled the country, Tang Dynasty flourished, Han Dynasty watched mountains and rivers, and Song Dynasty ruled mountains and rivers. These are some pictures representing China. The positioning of the ocean network will be younger and more fashionable, like dolphins, including frigates, becoming younger and younger. Therefore, from the product classification, it can also be like FAW-Volkswagen or SAIC-Volkswagen, but from the target group, the ocean net will be younger and the dynasty will be younger, but it may be more stable.
Automobile production: BYD has a strong momentum this year, and its sales volume can be said to be a ride. There is your information on the internet, saying that you joined BYD in 2003 and are an absolute veteran of BYD. From the year you joined the company, such as 20 10, BYD's E6 took to the streets of Shenzhen, and China had the first batch of pure electric taxis. Now BYD is so hot, can you briefly talk about your mental journey?
Lu Tian: Actually, I think this topic is still a bit long, but I think it is also particularly insightful. Personally, I entered BYD directly after graduating from college in 2003 and worked in the automobile industry. To put it bluntly, I have served BYD for about 20 years. At the end of 2020, I officially took charge of the dynasty. Frankly speaking, my personal experience has also witnessed the development of China's automobile industry. In the past, with the development of fuel vehicles, the volume of the whole automobile industry in China was 2 million to 3 million, and it may be 2 million to 3 million in 2003. By 20 16, the whole China market has reached 20 million, which is a doubling speed. At the same time, I also witnessed the development of China market from cars to SUVs, almost 50-50 cars, but also a number of new enterprises and so on. I have witnessed this industry.
BYD has always cherished a green dream. I remember our first DM hybrid car, which was the first model authorized by Greater China, was in 2008, when the breakthrough of zero penetration rate in China ended. Maybe everyone has also produced this new energy vehicle, but in fact, few people are insured or licensed. In this stage of the experiment, we achieved a zero breakthrough. Think about it. From 2008 to 2022 this year, it will be nearly 14, and the penetration rate will be 6% in 2020. In this 12 year, it will be from 0 to 6%. If the automobile market in China is stable at 20 million, what is the concept of 3% penetration rate? 6% of 20 million is 654.38+200,000, that is, 654.38+200,000 is all yours, that is, 654.38+200,000 enterprises, so it is a very small subdivision. But BYD has always insisted on this subdivision, and even we are at a loss. Everyone is a new energy source, saying that it is in this direction. Why is it so slow? But BYD finally came out. In this process, BYD insists on our technology-battery, motor and electronic control. I think our Wang Chuanfu will always be like a lonely pioneer, really moving forward alone.
By 20021year, our penetration rate increased from 6% or 7% at the beginning of the year to 2 1% at the end of the year. That is to say, in a year's time, the past 12 years was completed with a monthly permeability increase of nearly 1.5~2 points. So this persistence in this process is very difficult. I think this is my biggest personal feeling of sticking to the green dream, because I hesitated at that time. By the end of this year, the combined sales of BYD in our two networks,1October, should be1~ 1.62 million,1.62 million should be in the automobile industry in China, and I think it is also the leader. From 1 to 18 in February this year, we expect it to be between 185 and 186, so BYD won more than1800,000 in the China market this year, which should be proud in the automobile industry in China.
Automobile sankei: Which do you think is more important for BYD at this stage, brand, technology and service?
Lu Tian: Brand, technology and service, I think these three should all be more important. Frankly speaking, because of the brand, I know that the development of BYD brand has changed from fission to qualitative change in the past two years, so BYD should be considered when buying new energy. This process is what I just said. In fact, on the surface, it seems that our sales in the past two years are very good, but there are many stories behind it. In the past 20 years, we may have been making efforts in battery, motor and electronic control technology, including our blade battery, our CTB technology and our Dmi super hybrid vehicle. All these efforts have been made.
Why does BYD gain trust today? That is the core technology, especially the brand.
On the server side, we have actually grown rapidly in the past two years. Of course, you still have to hug users from the sales port. We believe that users' evaluation of us is the most objective and true, so we need to strengthen the overall service to users.
So I think the three are complementary, and I think they are all important.
Automobile production: BYD is about to enter the scale of annual sales of 2 million vehicles. What preparations have we made for future system capacity building, such as channels, such as products and services?
Lu Tian: Frankly speaking, if we go to this height, some of these networks and brands in the China automobile market may not have reached this height. We might have crossed the river by feeling the stones, but we could still walk with stones. In the tide of new energy, there is no stone that can't be touched, so you need to think for yourself.
First, in terms of channels, we pay more attention to user-centered, so our traditional 4s shop model continues to be retained. At the same time, we also have this kind of supermarket near the people's circle. All our channel models are user-centered, which makes users closer to our products. This is an important strategic adjustment.
Second, in terms of service quality, our internal name is WES, and we pay more attention to some comments from users. We will keep moving forward. And on this experience board, we will let users enter our service store, which is more comfortable from the after-sales and sales ports, because I think the best thing is to make people comfortable. This is our view of users. We believe that channels and services are user-centered. I believe that if its underlying logic is correct, I think our management will be further strengthened. At the same time, BYD also has this quick response ability and this vertical integration ability. I believe that with this underlying logical thinking and our quick response, this strategic layout will be better in the future.
Automobile sankei: This year, it is obvious that we have a long car picking cycle. Do we have a better solution next year?
Lu Tian: The car picking cycle, especially the pressure we faced in the first half of the year, is also the most complaining. We are also actively expanding production capacity. I believe we will solve this problem step by step in 2023. Our products will make users more comfortable. I think we will solve it completely in 2023, because our capacity expansion plan is gradually strengthened.
Automobile production and marketing: under the overall strategy of national economic stability, it is also in the post-epidemic era. What is your judgment on the sales volume of the overall automobile market next year? Will it remain weak? Or will it pass the freezing point at some point?
Lu Tian: I think the auto market will be better from the perspective of new energy next year. I found a phenomenon that we have an important data indicator on new energy vehicles, which is penetration rate. When we were at 202 1, our penetration rate was actually 5%-6% at the beginning of the year and 2 1% at the end of the year. The data I just mentioned, the permeability changes in the past ten years are all completed in one year. By this year, our peak may be in 165438+ 10, which should be more than 30% permeability, that is to say, we have completed a big peak last year in one year.
Increased permeability, what is this concept? It is equivalent to that before 202 1 year, there were only 3 new energy vehicles per 100 vehicle. Today, for every 100 vehicle sold, there are 35 to 40 new energy vehicles, so I think users' understanding of this new product has been basically solved, and the direction of the country has basically moved from the original policy to this real one. After driving a new energy vehicle, our consumers find that its ride comfort and even this energy consumption will be more comfortable, which is more in line with the needs of consumers now. Therefore, I think the development of the new energy automobile sector will be stronger next year.
However, I personally think that fuel vehicles may be more difficult. Take other industries, such as mobile phones, such as function machines. In those days, Nokia and Motorola were also very powerful brands. In our minds, they are also very good brands, but suddenly there is no Nokia. When I was a student, I was proud of Nokia. Overnight, when I opened my eyes and closed my eyes, the brand seemed to suddenly disappear, followed by smart phones. So I think this iteration may be more difficult in the development of fuel vehicles. However, I think new energy vehicles, coupled with the liberalization of the epidemic, I think the economy will recover soon, and I think the automobile industry is still very optimistic, especially new energy vehicles.
Automobile sankei: But in recent months, many bosses have said that the order trend in his hand is downward. Has BYD felt this cold in recent months?
Lu Tian: At present, our orders are OK, because we have a large number of unfinished orders in the past, but from the perspective of new entrants, our BYD is still very good, and the epidemic may be slightly affected, because people may go out. This is a process, but it is more difficult for BYD.