BYD (002594): Established a joint venture with Toyota to jointly develop pure electric vehicles

BYD (002594): Established a joint venture with Toyota to jointly develop pure electric vehicles

Event: The company announced an agreement to jointly establish a pure electric vehicle research and development company on the morning of November 7, 2019. BYD and Toyota will each hold 50% equity of the joint venture company. The joint venture company will be jointly formed and operated by personnel engaged in related businesses.The scope is the design and development, import and export, and sales of pure electric vehicles and related components.

Comments: 1. Significant progress has been made in cooperation with Toyota, and pure electric technology has been recognized.

As of July 19, the company announced a three-year contract with Toyota Motor to jointly develop pure electric models of cars and low-chassis SUVs.

We believe that the conclusion of the agreement to establish a joint venture is a major progress after the announcement of cooperation with Toyota. The two parties each hold 50% of the equity of the joint venture. The products designed and developed by the joint venture will make full use of BYD’s existing electric platform technology and electric zeroThe supply of parts, combined with Toyota’s quality and safety control standards, can be used under the Toyota brand for pure electric vehicles designed and developed by the joint venture.

We believe that this cooperation proves that BYD technology has been recognized by Toyota Motor, the company’s technical strength as a global leader in new energy vehicles has been proven, and the joint development of pure electric vehicles in the future will use the Toyota brand, which means that Toyota fullyRecognized the company’s pure electric vehicle technology, which also helped the BYD brand value gradually increase.

2, Toyota and BYD cooperation is a win-win choice, which is conducive to the promotion of technology.

Toyota announced that it will accelerate the electrification process. By 2025, Toyota’s new energy vehicle sales will increase to more than 5.5 million units (including EV, PHEV, FCV), about 5 years ahead of the Tier 1 plan. By 2030, HV + PHEV sales will be 450Million, EV + FCV sales of 1 million.

As a high-performance automobile giant, Toyota Motor has a deep technical accumulation and a good reputation in the fields of fuel vehicles, hybrids and fuel cell vehicles. However, this time in the field of pure electric vehicles, choosing to cooperate with BYD is a win-win choice.The initial layout of the pure electric field car companies has mature and stable electric technology, which can quickly help Toyota to make up the “short 杭州桑拿网 board” in the pure electric field, and Toyota’s outstanding product strength and reputation, growing momentum is rapid, this depthCooperation helps technology promote each other.
3. Short-term is conducive to the increase in sales and market share, and long-term is beneficial to the coordinated progress of brands and technology.

The company’s sales of new energy passenger cars from January to September 19 were 18.

60,000, ten years +37.

4%, the market share reached 23.

4%, an increase of 1 pct in about 18 years.

Affected by the supplementary and severe decline in the second half of the year, the industry ‘s new energy passenger cars showed a position trend from July to September. From the current terminal sales situation and feedback, the industry sales in the fourth quarter are still under pressure, evenMay 武汉夜网论坛 continue to grow negatively.
We believe that the industry is currently in the short-term sales and profit double bottom range, and the high growth of the new energy automobile industry is still optimistic in the future.

We believe that due to the expansion of the double-point assessment period next year, car companies will be more motivated to push electric vehicles. The company’s sales as a leader are expected to rebound. In the long run, in-depth cooperation with Toyota has proven the company’s technical strength in the field of electric vehicles.In the process of cooperating with Toyota, the technology progresses synergistically, improving the brand awareness of consumers, and helping to build a good brand reputation for a long time.

Risk reminder: Cost reductions fall short of expectations, and new energy vehicle sales fall short of expectations