BYD will open up auto supply chain and sell power batteries to the market

For a long time, BYD has a nearly closed production chain in alternative energy vehicle manufacturing area. Wang Chuanfu said on Shareholders’ meeting that BYD is negotiating with several large passenger vehicle brands for the sales matter of power batteries. Wang said that, because power batteries are the key parts of electric vehicles, it takes a long time to match with downstream manufacturers. It’s expected that one year is needed to achieve mass production. To dispel doubts from several auto manufacturing companies, BYD will provide battery cores while the third parties will provide battery packs.

Currently, nearly all power battery companies are trying to expand themselves, but BYD power battery departments are gradually overtaken in competitiveness. The 2016 global alternative energy vehicle sales champion BYD also meets a growing power battery production volume, ranking second in the first half year of 2016 and only second to Panasonic. But the declining subsidies resulted by changing policies in 2017 also causes the decreasing sales volume for BYD alternative energy vehicles, influencing BYD’s power battery installed capacity as well. Under this condition, BYD has the only choice to sell power batteries to the market, to keep its competitive power.