Whenever the brand view ｜ BYDs still have two steps to cross

Every time the brand value research institute, Fu Keyou

In the first half of 2022, BYD (SZ002594, a stock price of 338 yuan, and a market value of 984 billion yuan) new energy vehicle sales surpassed Tesla (TSLA, a stock price of US $ 752.29, a market value of US $ 779.7 billion). It is an important moment. No accident, BYD will top the list of global new energy vehicles in 2022.

For the automotive industry, to a large extent, scale is benefits, and market share is king. For BYD and more Chinese car companies, they may also have to face the challenge of another problem, which is the improvement of brand value. The scale and sales are of course the foundation of the brand; but how the brand value goes to the next level, there are two important steps that need to be leapfrog.

Two hard indicators of brand value

Despite the sales of Tesla, BYD was very calm and low -key. There are at least two reasons. One is external factors, such as the influence of the epidemic in the second quarter. The Tesla Shanghai Super Factory was discontinued for a short period of time, resulting in a decline in production capacity. The model, with pure electricity, won Tesla. In terms of pure tram global sales, Tesla is still the lead.

But these two reasons are not a big problem for BYD. The later, Tesla continued to be overtaken by BYD in sales, which is a probability event. As for hybrid models, as a transitional product, BYD will of course adjust in accordance with market demand, and it is not difficult to increase the production capacity and sales of pure trams. Doesn't BYD announce the suspension of fuel vehicles this year?

The real gap between BYD and Tesla is not in scale and sales, nor in hybrid and pure electric product structure, but in brand value.

According to BRAND Z 2022 World Brand Value Evaluation Report, the total value of automobile category brands in 2022 rose 34%year -on -year, and the top ten brands of the category were worth more than $ 230 billion. There are two car companies that are mainly engaged in new energy vehicles. Tesla tops the list. The brand value has soared by 184%year -on -year in 2021 to $ 36.27 billion. The only Chinese car brand in the first ten middle schools not only replaced Nissan, which ranked eighth in 2021, but also surpassed the two global car giants, Volkswagen and Porsche.

But this ranking does not match the volume and market value of BYD. One month ago, BYD exceeded the market value of the trillion yuan, ranking among the top three market value of global automobile companies. On the one hand, the brand value is eighth, and on the other hand is the third market value, which shows the problem: BYD's brand value needs to be caught up.

So, where is the brand value gap? For Chinese new energy vehicle companies, at least two hard indicators have to be mentioned. One is the profit index, and the other is foreign sales. To some extent, the former means that the higher the price of the brand, the higher the profit, the higher the brand value; the latter means the influence of the brand in the global market. The breadth and depth of the market are the important dimensions of brand value. It is a greater ability to earn global consumers.

From the perspective of profit indicators, the gap is very obvious. In 2021, Tesla's global sales were 936,000, and the net profit of the year was US $ 5.524 billion; BYD sold 730,000 units in 2021, and the profit was only 3.045 billion yuan. In the first quarter of this year, Tesla's gross profit margin in the first quarter was as high as 32.9%, while BYD's gross profit margin was 15.6%, only half of Tesla.

The gap between profit is actually the gap between brand value. The brand value is the confidence of Tesla's premium to sell cars.

In terms of export sales, Chinese car brands are showing a strong momentum. For example, in June this year, passenger cars exported 187,000 units, an increase of 67.7%year -on -year, and new energy vehicles accounted for 13.4%of the total exports. But know, there are contributions of foreign brands and joint venture brands. For example, in the first half of the year, Tesla Shanghai Super Factory produced nearly 300,000 cars, of which nearly 100,000 were delivered overseas.

China is already the world's largest new energy vehicle market, with its first production and sales for 7 consecutive years. In this case, the sales of independent brands seem to be a little late. As far as the foreign market siege, it may have just started.

Two new goals for brand promotion

As mentioned above, the brand value of car companies has two hard indicators. This means that there are two new goals for Chinese car companies to increase brand value. One is to increase the profit margin of the product, and the other is to participate in international competition and occupy a larger market abroad.

This may be two steps that BYD will span after the sales of sales. The high -end product, or the high -end brand is the only way.

Why is BYD's gross profit margin below Tesla? Simply put, it is not enough brand value support. The question is, what support does the brand value rely on? Relying on fist products and high -end fist products. In general, the higher the product, the higher the added value and profit. Without high -end products, it is difficult to say that it is a high -end brand.

For example, there are only 4 models in total. Among them, the two models of Model 3, Model Y accounted for 95%of global sales, the average price of Model 3 exceeded 300,000 yuan, and the average price of Model Y exceeded 350,000 yuan. The other two cars are millions of luxury cars.

What about BYD? The dynasty series, the marine series, and the E series of many models include the two power forms of EV and PHEV. The average price of bicycles is more than 100,000 yuan. Only Han and Tang series models can compete at the same level with Tesla, and the price is only 30,000 yuan. It can be said that the lack of high -end products is the root cause of BYD's low gross profit margin. Of course, independent brands such as "Wei Xiaoli" are also launching high -end models, but their main markets are still domestic. New energy vehicle independent brands must not only have high -end models, but also go abroad to achieve the rise of brand value.

It should be said that the independent brand of Chinese new energy vehicles is not inferior to foreign brands in terms of hard power, and even some aspects are better than foreign brands. For example, BYD is considered to be the only car manufacturer that can produce new energy vehicles, power batteries, and vehicle -level chips at the same time in the world. The exclusive blade battery is also considered to be better than lithium iron phosphate batteries in terms of safety. It is only inadequate in terms of technology and intelligence.

It can be seen that it has become a consensus of China's new energy vehicle brand. In the last period of "Every 100 Dynamics", Avita, a high -end brand jointly released by multiple parties, is an example. It is reported that BYD's high -end brand plans are: the brand and logo in the third quarter of 2022; the first hard -core off -road vehicle model was released in the fourth quarter; the first model was listed in the first half of 2023. Obviously, the brand value leap is already on the road.

Daily Economic News

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