New energy vehicle sales surged 49% year on year in April, according to BYD's April production and sales report, the company's NEV sales volume was 313,000 units, an increase of 49.0% compared with 210,000 units in the same period last year; up 3.6% from March sales of 320,000 units.
Among them, passenger car sales were 312,000 units, up 49% year on year, up 3.5% month on month; commercial vehicle sales were 1,197 units, up 44.6% year on year, up 44.6% month on month. In the passenger car sales structure, sales of pure electric vehicles were 134,000 units, up 28.8% year on year, down 3.9% month on month; plug-in hybrid car sales were 178,000, up 60.0% year on year, up 9.8% month on month. In the commercial vehicle sales structure, bus sales volume was 672 units, up 86.1% year on year, up 149.8% month on month; sales of other commercial vehicles were 525 units, up 12.4% year on year, down 6.1% month on month.
New energy vehicle production surged 59.5% year on year in April
New energy vehicle production in April was 334,000, up 59.5% year on year and 12.8% month on month. Among them, passenger car production was 333,000, up 59.5% year on year, up 12.7% month on month; commercial vehicle production was 1,197 units, up 44.6% year on year, up 44.6% year on month. In the passenger car production structure, the production of pure electric vehicles was 146,000 units, up 32.1% year on year, up 8.4% month on month; hybrid vehicle production was 187,000, up 90.3% year on year, and 16.3% month on month. In the commercial vehicle production structure, bus production was 672 units, up 86.1% year on year, up 149.8% month on month; production of other commercial vehicles was 525 units, up 12.4% year on year, down 6.1% month on month.
The gap between production and sales widened sharply in April, and manufacturer inventories began to increase
The company's production and sales gap expanded to 21,000 vehicles in April. After 2 consecutive months of inventory elimination, manufacturer inventory began to increase this month.
Export sales continued to increase in April
In April, NEV exports were 410,000, up 176.6% year on year, up 6.7% month on month; cumulative exports of 139,000 vehicles were exported, with a cumulative increase of 159.4% year on year, and export sales continued to increase.
The increase in battery installed capacity increased in April
In April, the installed capacity of NEV power batteries and energy storage batteries was 12.6 GWh, up 26.2% year on year, up 6.8% month on month; the total installed capacity was about 42.3 GWh, with a cumulative increase of 14.5% year on year.
Investment advice
Although consumer wait-and-see sentiment dragged down the overall sales growth of the industry, the price-impulse competitive strategy continued to drive the company's sales volume to increase sharply this month over year. Under the trade-in policy, with the highest country subsidy of 10,000 yuan for bicycles and the highest company replacement subsidy of 8,000 yuan, it is expected that subsequent sales will continue to increase and market share will expand steadily. At the same time, considering the cost amortization brought about by the expansion of sales volume, the high increase in export sales, and the improvement in the sales structure brought about by the release of high-end models, the company is expected to face a double hit in profit and valuation, and maintain a “buy” rating.
Risk warning
1. Overseas exports fell short of expectations. The export destination country's tariff policy, international political relations, local channel construction, supporting charging facilities, and consumer recognition of electric vehicles will all affect the company's overseas journey, causing exports to fall short of expectations.
2. The high-end process fell short of expectations. High-end products are influenced by soft power such as cultural accumulation and brand value. At the same time, domestic manufacturers and joint ventures import car companies are promoting high-end products, and market competition is more intense, which may affect the company's high-end development.
3. Joint venture car companies' backlash affected the company's basic market sales. Joint ventures are highly profitable and have the advantage of price competition, so keep an eye on the risk of joint ventures using price wars to fight back.