On April 3, BYD Auto announced that in accordance with its strategic development needs, the company stopped manufacturing all fuel-powered cars in March 2022. BYD will focus on pure electric and plug-in hybrid vehicles in the future, indicating BYD has become the first automotive company in the world to formally declare the end of production of petrol vehicles.
Why it matters
According to the company, the strategic adjustment primarily focused on China’s carbon peaking and carbon neutrality goals. It aims to promote sustainable social development by leveraging scientific and technological innovation.
Sales data released by BYD in March 2022 showed that the output of new energy vehicles in March was 106,658 units, an increase of 416.96% YoY. The sales volume was 104,878 units, an increase of 422.97% YoY.
Context
Against the backdrop of the COVID-19 pandemic and tight global supply chains, China’s new energy vehicles are seeing rapid growth. In the report released by China Passenger Car Association, among the 860,000 units net increase in China’s auto retail sales in 2021, the number of traditional fuel vehicles declined by 1.02 million units, a YoY decrease of 6%, while the growth of new energy vehicles was 1.88 million, a YoY increase of 169%.
