Wang Chuanfu wants to put electric vehicles into the north

BYD President Wang Chuanfu frequently flew to Beijing, Shanghai and Guangzhou to promote the public transport system of the public transport system to the local government. Following the successful entry into Shenzhen, Xi’an, Shaoguan and Changsha, BYD re-introduced Tianjin and Yunnan in March and April this year. Subsequently, Wang Chuanfu aimed at Beijing, Shanghai and Guangzhou.

"The North Plaza may not have such a large amount, but what we think of is the landmark meaning of the first-tier cities. This has great benefits for us to follow up on the electric bus program." Daily reporter said.

There is still a huge economic book behind the BYD City Bus System electric vehicle program. According to statistics, the market capacity of taxis and buses (including passenger cars) in China is 1.7 million. The taxi market also has a certain number of new purchases and redemptions each year, which has huge market potential. Taking Shenzhen and Changsha as examples, BYD signed a local electric bus and taxi purchase agreement, and the total transaction volume has reached 3.35 billion yuan.

However, although the future is bright, the road is still winding. Protecting local enterprises is usually the preferred choice of local governments. How to cross the threshold of local protection will be the greatest test of Wang Chuanfu.

"Pengcheng Electric" sample Shenzhen Meilin, Pengcheng Electric Taxi Co., Ltd. (hereinafter referred to as "Pengcheng Electric") compound, two pure electric taxi E6 is charging, most other taxis are driving in Shenzhen.

Pengcheng Electric is the first large-scale commercial electric taxi company in China. It was jointly established by BYD and Shenzhen Bus Group in March 2010. The two companies hold 45% and 55% respectively. In the early days of its establishment, Pengcheng Electric invested only 50 BYD E6 pure electric taxis. In 2011, it again invested 250 vehicles. As of the end of last year, the total number of electric taxis in Pengcheng reached 800.

“We have a comparison of the data here. The average fuel cost per month for a fuel taxi is 11,775 yuan, and the average monthly electricity bill for an electric taxi is 4,300 yuan. The average price per month for a fuel-electric taxi is about 7,500 yuan.” General Manager Pengcheng Electric Du Jun told this reporter. The difference between the price of electricity and electricity is the main source of profits for pure electric taxis. Although the procurement cost of E6 after removing government subsidies is 180,000 yuan, which is about 80,000 yuan more than that of traditional fuel vehicles, it depends on the profit brought by the difference between oil and electricity to run one. Years can make up for the higher price of the car due to the purchase of a car.

"(Distribution) 300 vehicles can achieve a break-even." Du Jun said that in 2013 the company also plans to add 700 pure electric taxis, bringing the total number of operations to 1,500.

Relevant data show that in 2010, Pengcheng electric loss of 2.54 million yuan, a loss of 5.7 million yuan in 2011. In the first half of 2012, it turned a profit and made a profit of 2.39 million yuan. In the first quarter of 2013, Pengcheng Electric had a profit of more than 5 million yuan.

Pengcheng Electric's earnings provided BYD with access to other cities provided commercial samples and models. At the same time, the environmental significance of the city's electric bus program, which was first implemented in Shenzhen, is also expanding.

Investment-for-market Wang Chuanfu has frequently attacked other cities in China and has successfully entered six cities (provinces) including Xi'an, Shaoguan, Changsha, Tianjin and Yunnan.

People close to BYD Automobile stated that the discussion with Guangzhou City is nearing completion and is expected to be signed in the near future. Currently, Wang Chuanfu and other senior executives of the company focused their energies on discussions with the competent authorities of Shanghai and Beijing Municipal Government, and tried to achieve the goal of achieving North The entry of first-tier cities.

However, the reporter found that among the cities that have signed up, BYD mostly has plans to build factories or establish joint ventures with local companies. Although BYD did not admit it – but setting up a joint venture and building a plant may be one of BYD’s attempts to break local protection.

In March this year, Tianjin BYD Auto Co., Ltd., a joint venture between BYD and Tianjin Bus Group, was formally established. According to the plan, the joint venture company will build a new energy automobile production base and export base in Tianjin, and plans to produce 10,000 vehicles a year. In addition to building a production base, Tianjin BYD also set up a research and development center for pure electric buses in Wuqing.

In April, BYD signed a joint venture with Yunnan Investment Holding Group to establish a pure electric vehicle production base in Yunnan and promote new energy vehicles. Kunming, as one of the 25 pilot cities for the promotion of new energy vehicles in China, has issued a series of incentive policies to support the development of new energy vehicles. In addition, BYD has factories in Xi'an, Changsha and Shenzhen.

However, BYD's insiders said that because they only built an assembly plant, they did not increase much. It is reported that the BYD and Xi’an taxi companies are currently negotiating a single large scale of 3,000 electric taxis. In 2013, they will first invest 1,000 vehicles; Tianjin will also put 1,000 BYD electric taxis. Based on the selling price of RMB 300,000 for E6 bikes, Xi’an and Tianjin will bring RMB 1.2 billion orders to BYD.

According to public statistics, BYD will receive an order worth 6 billion yuan this year for electric buses only, and electric taxis will exceed 10 billion yuan.

Although BYD electric vehicles have successfully entered six cities, “local protectionism” may be a roadblocker on its way forward. Judging from the development of electric vehicles in other cities, Beijing pure electric taxi uses Beiqi Foton's products, while Hangzhou uses Hangzhou Zhongtai and Jinhua Kandi's electric vehicles. At the same time, the construction of electric vehicles such as charging piles and charging stations involves the coordination of various departments, and they want to go further in this area. BYD needs to learn to “learn to be good at dancing”.