BYD (Minutes): 2025 sales target of 5.5 million vehicles, including 800,000 overseas
The following is the core content of the 2024 performance meeting minutes extracted by Dolphin Research for $BYD COMPANY(01211.HK). For financial report interpretation, please refer to《 BYD: Spending Money and Making Money, Who Else Besides the "King of Cars"? 》
1. Company Performance
2. Key Points from the Performance Meeting
1. Sales Target: 5.5 million units sales target for 2025
a. The overseas sales target for 2025 is 800,000+ units (compared to 410,000 in 2024), with a focus on deepening localization in Europe, Southeast Asia, and South America, and plans to establish new overseas factories.
b. The domestic sales target for 2025 is 4.7 million+ units. The domestic market remains competitive, and BYD relies on:
① Electrification: Launching the "super-platform" and fast-charging batteries, 30,000 RPM motors, etc., to achieve "oil and electricity at the same speed";
② Intelligence: Advancing the overall vehicle intelligence strategy, popularizing advanced driving technology, to launch intelligent solutions in the global market by 2027;
③ Premiumization: Brands like Yangwang and Denza are making efforts to capture the 200,000+ market through technological differentiation (such as intelligent suspension and onboard drones).
④ Achieving scale effects from vertical integration: Strengthening scale effects relying on a team of 120,000 engineers and a vertical integration model.
2. Company Strategy:
The domestic market is highly competitive, but overseas high-margin markets (Europe, Southeast Asia) contribute incremental growth, combined with scale effects (depreciation per unit is about 2,000 yuan for 5 million units sold) and technological iterations (such as intelligent driving) supporting premium pricing. In the short term, flexibility is needed to respond to price wars, while in the long term, relying on dual advantages of technology and cost to maintain market share.
3. Overseas Business Development and Planning
a. Currently, factories in Thailand and Uzbekistan are in production, deepening localized production layout, and two roll-on/roll-off ships have been delivered to enhance international logistics capabilities.
b. There are currently no plans to enter the U.S./Canada market in the short term due to geopolitical issues: Although the U.S. and Canadian markets are large, they are significantly affected by geopolitical factors, and there are no plans to enter in the short term. There are many other large markets globally, such as South America, Europe, and Australia.
c. BYD plans to fully export intelligence overseas between 2026-27, focusing on the "safety" label (such as reduced accident rates), adapting to local regulatory needs, and creating a synergistic effect with electrification. The solution to the tariff issue for exports to Europe: BYD has a factory in Hungary, and many components for overseas factories can still be sourced from China. Components can also be divided into front and rear sections, with core parts exported from China and the rest produced and assembled overseas to avoid tariffs.
By leveraging China's management, efficiency, and research and development of automation equipment, the integration of assembly can be maximized, and costs will still be lower than those of foreign brands producing abroad. Additionally, China's new energy vehicle industry chain has significant advantages, as batteries produced in China are more efficient than those produced abroad. Even with final assembly taking place overseas, products from Chinese brands still hold an advantage.
4. Premiumization
Currently, it is impossible to determine the market share of the 5.5 million sales target for the 200,000 yuan and above segment, as the Chinese market is ever-changing, making it difficult to estimate when competitors will make moves or launch unexpected pricing. The company has begun to enhance its premiumization from a strategic perspective and will launch many new products.
On March 21, BYD's Tengshi N9 was officially launched, positioned as a large six-seat plug-in hybrid SUV, with main competitors being Aito M9/Li Auto L9, priced between 339,800 and 449,800 yuan. On March 24, according to Weibo information, #Tengshi N9 pre-orders have exceeded 10,000, surpassing expectations, with monthly sales expected to reach 5,000 to 10,000 units post-launch, making it an important representative of BYD's premium products.
In 2025, BYD is expected to see rapid growth in product premiumization, with products like Yangwang driving the brand towards higher-end and higher transaction prices. BYD has 120,000 engineers supporting this initiative and will introduce a series of unique technologies to meet the needs of premium brands, ensuring the driving safety of high-end consumers.
5. BYD Electronics Revenue Target
The revenue target has not been mentioned, but BYD's cockpit and intelligent driving sectors are fully involved in BYD Electronics. Starting from core precision components, it involves both mechanical and electronic fields to strengthen component control.
They will produce mechanical sensors, neural detectors, etc., leveraging the company's advantages in software, battery, and precision component manufacturing.
6. Other Cutting-edge Direction Layouts
AI and Robotics Layout: Independently developed industrial robots (such as warehousing and logistics robots), focusing on core components (sensors, controllers), will be prioritized for application in their own production lines to enhance efficiency, with experimental lines replacing workers expected to be implemented in the second half of this year.
For BYD, the first step is to replace production line workers with robots, which can bring about improved economic benefits. Compared to vacuum cleaning robots, humanoid robots mainly consist of 60 motors along with some other components and batteries. The key is who can reduce the costs of the 60 motors, other components, and batteries, as that will determine who can gain an advantage in the market.
AI Servers: The layout of data centers and communication equipment, in line with the computational power needs of large models, has already achieved mass production of core components.
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