(Yicai Global) May 10 -- BYD Auto Co. [SHE:002594] has not yet officially issued a document on whether it will supply its batteries to all carmakers, and any information that isn't from the company is just conjecture, the relevant person in charge told Yicai Global when asked about rumors about such a sourcing agreement.
There has recently speculation that BYD will provide its batteries to other industry players and that BYD's vehicle manufacturing unit will purchase car parts from global vendors. There has also been a lot of talk about whether plans to have BYD's auto electronics unit operate independently will move forward.
The Shenzhen-based firm is strengthening its promotion of new energy vehicles and has adjusted its business strategy after losing its number one spot in domestic NEV sales.
In the first quarter, there was a decline in sales of new energy vehicles, which had an obvious impact on BYD -- its new energy vehicle and battery sales declined, Wu Hui, research director of CCID Consulting Co., said yesterday.
BYD should spin off its core battery business for independent operation, Wu said. This plan is conducive to the future development of BYD and would increase the company's overall market value, said Wu.
Development of new energy vehicle is a trend, Wu said. With the influx of groups in the new energy vehicle field, the demand for batteries will increase rapidly, and BYD could grow if it supplies other automobile manufacturers with batteries, said Wu.
BYD was the world's top new energy car seller in 2015 and 2016. In the first quarter of this year, Beijing Electric Vehicle Co.'s new energy passenger car sales surpassed BYD's.
BYD also lost its spot as king of the hill in car battery sales in the same period. Fujian-based Contemporary Amperex Technology Co., which is dedicated to the energy storage business, ranked first, supplying 328,000 kilowatt-hours of automotive batteries, a 12.5-percent year-on-year increase, public data shows. BYD ranked second with 217,000 kWh, down 63.9 percent from a year earlier.