De-fueling is not easy. BYD is a special case. There are still twists and turns in the replacement of fuel vehicles with new energy.

Not long ago, BYD announced to stop production of fuel vehicles, becoming the world's first 100% de-fueled traditional car company. This action can indicate that the development of new energy vehicles is about to enter a new stage. Is there any strength to compete with fuel vehicles? Under the current policy support, the strength of new energy vehicles and fuel vehicles is not very different. According to this trend, it is the general trend that new energy vehicles will replace fuel vehicles, and de-fueling is also a matter of course.

To compete head-on with fuel vehicles, only the leading companies of new energy vehicles have this strength. Most of the new energy vehicle companies want to compete head-to-head with traditional fuel vehicle companies. After all, the new energy vehicle market is also a mixed bag. There are those who really build cars, and there are those who want to take a chance or make money. Only after a lot of scouring the sand and cleaning out the new energy vehicle companies that are not competitive enough, the new energy industry has formed a relatively stable The pattern can be regarded as the real formation of combat effectiveness.

In March, the crazy price increase of raw materials for new energy vehicles put enormous pressure on new energy manufacturers. The price increase in March this time is another price increase after the price increase of car companies after the subsidy ebb a year ago. The price actually has a very large impact on the sales of new energy vehicles.

Many consumers choose new energy vehicles because new energy vehicles can save their car costs. After all, in this era of high oil prices, driving new energy vehicles can achieve a considerable degree of freedom of travel. Coupled with policies such as unlimited green cards for new energy vehicles and exemption from purchase tax, as well as the driving experience of new energy vehicles, this has led to rapid growth of new energy vehicles.

Looking at the sales of new energy vehicles and fuel vehicles in recent years, we can have a clear understanding of the development of new energy. Let's look at the data in 2020. In 2020, the cumulative sales of domestic narrow passenger vehicles in China will be 19.288 million units. , a year-on-year decline of 6.8%; the retail sales of new energy vehicles was 1.109 million, a year-on-year increase of 9.8%.

According to 2021 data, in 2021, the cumulative sales of domestic narrow passenger vehicles in China will be 20.146 million units, a year-on-year increase of 4.4%; the retail sales of new energy vehicles will be 2.989 million units, a year-on-year increase of 169.1%.

According to the data of the first quarter of 2022, in the first quarter of 2020, the cumulative sales of domestic narrow passenger vehicles in China was 4.915 million units, a year-on-year decrease of 4.5%; the retail sales of new energy vehicles was 1.07 million units, a year-on-year increase of 146.6%.

From this development, we can see that the momentum of new energy is indeed unstoppable. Even when the overall sales of automobiles are declining, the sales growth of new energy vehicles is also very impressive. In the past March, the penetration rate of new energy vehicles reached an astonishing 25%, and some experts even said that this year, the penetration rate of new energy vehicles may even reach 35%.

The development of new energy is indeed very fast, but we must also see that the proportion of new energy vehicles in passenger car sales is still very low, and the development of new energy vehicles is affected by the increase in raw material prices and changes in national policies. The inhibitory effect of changes on sales will also be reflected in the follow-up.