In the long river of history, 2023 may just be a drop of water, but for BYD, this year is like a brilliant star, marking the twenty years of their car making journey. These twenty years have been a time for BYD to walk alongside the new energy dream, with both brilliant success and unknown challenges.

In this special year, Wang Chuanfu, the head and chairman of BYD, often choked up in affectionate memories. He remembers that when he decided to enter the automotive industry, he faced criticism and ridicule from the outside world, but he did not choose to back down, but resolutely embarked on a lonely path. He firmly believes that Chinese people can create miracles in various industries, and the automotive industry can do the same. He wants to do a world-shaking test for BYD, China's new energy vehicles, and even the entire Chinese automotive industry.

"BYD can do it! New energy can do it! Chinese cars can do it!" Wang Chuanfu's voice became increasingly loud as BYD grew.

As one of the important pillar industries of the national economy, the development of the automotive industry has also attracted attention from all sectors. The 2024 government work report specifically pointed out that China's production and sales of new energy vehicles account for over 60% of the world's total, and it is necessary to consolidate and expand its leading advantages in industries such as intelligent connected new energy vehicles.

Recently, BYD Co., Ltd. (002594. SZ, hereinafter referred to as "BYD") stated in an interview with China Business Daily that the key to BYD's leadership in the field of new energy vehicles is their continuous investment and deep cultivation in technology research and development, which has built BYD's technological moat.

Wang Chuanfu once revealed that in the past twelve years, BYD's R&D investment exceeded its net profit for eleven years, sometimes even three to four times its net profit. Even in the days of a significant decline in profits, BYD has not reduced its investment in research and development, and this persistence has ultimately resulted in technological breakthroughs and market recognition.

According to data from 2023, BYD's production and sales reached 3.0452 million and 3.0244 million vehicles respectively, a significant increase of 61.84% and 61.86% year-on-year, exceeding the annual sales target of 3 million vehicles set at the beginning of the year. This is not only the best proof of BYD's 20-year persistence, but also a strong affirmation of its technological strength.

Building a technical moat after 20 years of deep cultivation

On the evening of March 6th, BYD's high-end brand Tengshi Motors held a new car launch event, officially introducing the new Tengshi D9, marking a new round of impact for BYD's high-end brand on the MPV market and a strong break from the traditional MPV model's dominance of more than 20 years, completely rewriting the MPV market pattern.

Looking back at BYD's journey towards new energy, it feels like a tumultuous epic. The leap from the first new energy vehicle to the cumulative production of 1 million vehicles took thirteen years. And the subsequent doubling occurred at an astonishing speed: the second one million vehicles took only one year, and the third one million vehicles were shortened to six months.

By August 2023, BYD will be the world's first car manufacturer to reach this milestone, with its 5th millionth new energy vehicle being taken offline. On November 24, 2023, another good news from BYD was announced - the 6th million new energy vehicle was born, and this achievement was achieved in just over three months. It can be said that every step of BYD's growth reflects the rapid rise of China's new energy vehicle industry.

Behind this is BYD's continuous deep cultivation in technology research and development. Wang Chuanfu, the founder of BYD, always feels a little fortunate when looking back on the past twenty years of car manufacturing - they chose the right path. "Many people have mocked us for 'burning money', but we are well aware that without independent core technology support, we cannot create high-quality new energy vehicles. Technology research and development is our new long march towards technological self-reliance and self-improvement. On this path, we never hesitate, always making independent technology research and development our firm choice, and also the only choice."

Looking back to the ever-changing moment in 2003, Wang Chuanfu, with his passion for new energy, stepped onto the stage of the giant competition in the automotive industry. However, the stock price fell in response to him, like a cold slap in the face, giving this dreamer a vivid reality lesson. The cruelty of the capital market has made Wang Chuanfu taste the bitterness of reality.
"How dare a battery company venture into car manufacturing?" External doubts and ridicule flooded in like a tide. Wang Chuanfu remembers that at the 2004 Beijing International Auto Show, BYD showcased three new energy concept cars, while the surrounding booths all displayed fuel powered models without exception. "At that time, almost no one believed that new energy vehicles would have a future. The term 'new energy vehicles' was still little-known. The public neither understood nor believed in it, and even looked down upon it. Everyone was questioning whether it was really feasible for BYD to build electric vehicles."

Faced with doubts and ridicule from the outside world, BYD did not back down, but firmly embarked on a path that was full of thorns and ignored at the time. Wang Chuanfu set a proposition for himself with a rhetorical question: "Why can China amaze the world in other fields, but not in the automotive industry?" He aspired to prove to the world: "BYD can do it, new energy can do it, and Chinese cars can do it!" This is not only self motivation, but also a firm commitment to the future.

Technology is the sharp sword in Wang Chuanfu's hand. He deeply understands that only through continuous research and development investment and innovation can he conquer the heart of the world. "What do we use to prove ourselves? The answer is research and technology." It is this unwavering belief that ultimately led BYD to fruitful results.

Today, BYD is already at the forefront of the global new energy vehicle industry. It always adheres to the concept of "technology as the king and innovation as the foundation", and maintains high-intensity investment in technology research and development. As of February 18th this year, the company has over 90000 R&D engineers, with a total of over 48000 patent applications and over 30000 authorized patents worldwide. On average, there are 27 patent applications and 15 patent authorizations per day, and the company has won 4 patent gold awards.

As a technology driven technology enterprise, BYD's technology research and development has always been at the forefront of the world. In the automotive field, the company has achieved comprehensive coverage from vehicle technology to core components such as batteries, motors, and electronic controls, and even achieved vertical integration of upstream automotive semiconductors, building a complete industrial ecosystem covering the upstream and downstream of the industry chain. Looking ahead to the future, BYD will continue to increase research and development investment, continuously cultivate new productivity through technological innovation, lead the company's high-quality development, and steer towards a more brilliant future.

Achievements in core technology research and development BYD

When recalling BYD's early investment in core technology research and development, Wang Chuanfu still holds deep emotions.

In 2002, BYD gained insight into the potential of lithium iron phosphate batteries and resolutely decided to invest in the research and application of this technology. Since then, BYD has adhered to this technological route and continuously explored new possibilities. It is precisely because of BYD's 18 years of unremitting efforts and continuous research and development that the blade battery, which led the industry in 2020, was born.

"Blade batteries not only break the limit of electric vehicle range, but also solve the long-term battery safety problems faced by the new energy industry." Wang Chuanfu said, "Thanks to blade batteries, lithium iron phosphate technology has once again become the preferred choice in the market."

When it comes to plug-in hybrid (PHEV) technology, BYD is not only the first to venture into it, but has also been persistent in this field. Although BYD encountered many twists and turns and choices during this process, it never gave up.

We launched the world's first mass-produced plug-in hybrid model F3DM in 2008, which was equipped with our unique DM hybrid technology. Afterwards, we also launched an upgraded version of DM2.0. By 2018, when DM technology evolved to the third generation, we were almost at a loss. At that time, the market share of plug-in hybrid vehicles in China's new energy market was very small, and our technology urgently needed further optimization and breakthroughs, with uncertain prospects. Many car manufacturers have abandoned the research and development of plug-in hybrid technology. Even internally, there are many voices suggesting giving up. But I ultimately decided to stick to it. Even if it is a wrong persistence, I am willing to bear the consequences. It can be said that we have tried all the seemingly feasible technological paths Wang Chuanfu couldn't help but shed tears as he recalled those difficult years.

BYD, like an endless stream of heat, has always persistently promoted technological research and development, and finally achieved brilliant results. By 2020, BYD had made significant progress in three core technologies: plug-in hybrid engines, EHS electric hybrid systems, and plug-in hybrid blade batteries, and successfully applied these technologies to production practice. The breakthrough application of these technologies has made BYD a leader in China's emerging car making forces, while also pushing this core competitiveness into the mainstream market.

We have combined the first generation DM dual motor hybrid architecture with breakthroughs in three core technologies to develop the DM-i super hybrid technology. Since then, the plug-in hybrid market has ushered in a turning point, with more and more enterprises joining the research and development of plug-in hybrid technology, and plug-in hybrid has gradually become mainstream. Whether in the choice of technical routes or investment in research and development funds, we have always adhered to the path of technological research and development. Once, we were worried about not waiting until spring arrived, and we didn't want to disappoint our employees and friends who supported us Wang Chuanfu said so.

Nowadays, BYD has further pushed its technological research and development to new heights, proposing the concept of "vehicle intelligence". Through the implementation of the Xuanji intelligent architecture, BYD has achieved an effective combination of electrification and intelligence, making vehicles safer, more efficient, and more personalized. The whole vehicle intelligence breaks down the barriers between different systems, can capture real-time changes in the internal and external environment, and summarize information into a "brain" for decision-making processing in milliseconds, quickly adjusting the vehicle status, thereby greatly improving driving safety and comfort. At the same time, vehicle intelligence also enables cars to better understand users, achieve more personalized settings, and truly tailor to individual needs.

Only BYD can achieve vehicle intelligence. This achievement is partly due to BYD's strategic advantages of full stack self-development and vertical integration, which is the result of BYD's long-term strategy and technological emphasis; On the other hand, it is also inseparable from BYD's profound accumulation in the field of electrification, which has laid a solid foundation for vehicle intelligence.

As Wang Chuanfu said, "Intelligent vehicles are the true intelligence."