BYD’s chairman says NEV market share in China to top 35% by 2022

Shanghai (Gasgoo)- The annual sales of new energy vehicles (NEVs) in China are expected to surpass 3.3 million units in 2021, and the NEV market share is likely to top 35% by the end of 2022, Wang Chuanfu, chairman and president of BYD Company Limited, recently said at the Sequoia Digital TECH 2021. 

He noted the NEV industry is posting a blooming growth this year and will face good development opportunities over the next three to five years due to the global climate change, China's commitment to peaking carbon emissions and achieving carbon neutrality, and the stronger public awareness of environmental protection.

According to Mr. Wang's speech, he thought, in the transition from the oil-fueled car to electric vehicle era, the industrial chain will be restructured, especially for the fields of battery and semiconductor.

The demands of batteries, which account for about 30% to 40% of the cost for building a car, have faced explosive growth this year to outnumber the supplies, said Wang Chuanfu.

He also mentioned the demands of semiconductors (including IGBT and AI chips) for electric vehicles are five to ten times more than that of the traditional internal combustion engine vehicles. The robust growth in electric vehicle sales is one of the factors leading to chip shortage this year, he said.

Regarding BYD's industrial deployment, Wang said that BYD has been constantly investing in the domains like batteries, electric motors, electric control units, and industrial semiconductors. He disclosed that BYD currently has nearly 200,000 backlogged orders of the BYD DM-i models, whose lead-time has reached four months.