BYD Co Ltd will start supplying a full range of electric vehicle parts to rivals and aspiring automakers in a bid to diversify revenue streams amid sluggish auto demand.
The Shenzhen-based company currently manufactures and sells components including electric vehicle batteries, powertrains and lamps, founder Wang Chuanfu said in an online news conference. Over the past six years, as China’s largest alternative energy vehicle manufacturer, BYD will use the “FinDreams” brand in its parts business.
Since July last year, the Chinese government has reduced subsidies for the sale of electric vehicles. Electric vehicle sales in China have been falling since then, and the coronavirus outbreak has exacerbated the decline.
Notably, BYD, which has a more stable financial position than most local EV companies, is betting that the new business will help the company return to growth more quickly at a time when the market is shrinking.
Wang Chuanfu said: “BYD will open its technology and products to the world, and the FinDreams brand will help change the role played by Chinese auto industry players in the global new energy field.” BYD was founded as a mobile phone battery manufacturer. For 20 years, the company has been growing by expanding into new businesses.
Wang Chuanfu also pointed out that in order to help fight the spread of the new coronavirus, the company has begun to switch production of masks. In the past week, the daily production capacity of BYD masks has reached 10 million. The versatility of BYD’s manufacturing operations has helped the company achieve self-sufficiency in electric vehicle components.
Until recently, BYD had focused on producing components for internal use only, but now the company is looking to capitalize on a potential market recovery and future growth to grow its business.
According to data released by Sanford C. Bernstein & Co., the annual value of batteries used in electric vehicles, electric buses and related energy storage is expected to grow about 10-fold to $500 billion by 2050 potential size.
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