Source to Carfun, in the past two decades, Chinese electric vehicle (EV) manufacturer BYD has been relentlessly pursuing patents for EV technology, amassing a staggering 13,000 patent applications, a figure more than 15 times greater than Tesla’s modest 863 patents. The stark contrast primarily boils down to one critical component: batteries. BYD not only produces its own batteries but also conducts extensive research and development in this domain. This relentless patent activity is primarily aimed at safeguarding its battery technology.

Recently, a Japanese software company named Patent Result conducted a comprehensive study on EV patents and uncovered some intriguing findings. Between 2003 and 2022, BYD submitted over 13,000 patent applications, while Tesla, during the same period, only filed 863 patents. What’s even more striking is that more than half of BYD’s patent applications pertain to battery technology. This underscores BYD’s unique approach compared to other automakers since they internally develop their batteries. In contrast, most other manufacturers rely on third-party suppliers, making them more reliant on patents to protect their battery technology from imitation.

Batteries constitute a vital element of electric vehicles, and BYD’s approach differs significantly from its competitors. Developing in-house battery technology demands greater dedication and effort. However, other battery manufacturers might attempt to replicate their innovations by dissecting their battery packs. BYD’s blade battery, which uses lithium iron phosphate as the cathode material, has established itself as a leader in the development and production of this kind of battery. It offers superior safety and cost-effectiveness compared to nickel, cobalt, manganese (or aluminum) ternary lithium batteries. Nonetheless, filing patents comes with its own set of risks, as patent applications are made public, potentially enabling competitors to derive various technologies from them.

Take Tesla, for instance. Although Tesla has only submitted 863 patents over the past two decades, its research and development heavily rely on the utilization of publicly available information and software. Consequently, its patents largely relate to charging infrastructure and communication between electric vehicles and drivers. This highlights the divergent priorities in their EV development strategies. Tesla also employs advanced production techniques within its factories to reduce the risk of replication by other companies. The question that arises is whether BYD, with its extensive patent portfolio, can translate this into improved sales and challenge the dominant position of global EV leaders. The answer to this query may become apparent within the next 5 years, as the competition in the electric vehicle sector continues to intensify. (Image credit: BYD)

(Source: https://carfun.tw/ecar-news/14585/)

Report to InfoTimes, Chinese electric vehicle giant BYD is making impressive strides in Southeast Asia, not only leaving strong rivals like Tesla far behind but also dominating the market share in the region. Currently, in the local market, at least one out of every four electric vehicles is a BYD.

Industry analysts point out that BYD’s competitive advantage lies in its affordability and high value for money. Early on, the company partnered with large enterprises and conglomerates in Southeast Asia, adopting a distribution model to sell its vehicles. This approach allowed BYD to gradually expand its influence, understand the preferences of Southeast Asian car owners, and navigate the complex local regulations without running afoul of them.

According to TrendForce, in Q2, BEVs alone posted sales of 2.151 million units, marking 39.3% growth YoY. While Tesla maintains the lead with a market share of 21.7%, but BYD trails closely behind with a boosted share of 16.2%. In PHEVs, with the registering sales of 876,000 units in Q2—a striking 52.9% YoY increase. Astonishingly, about 66% of these sales hailed from the Chinese market. In this segment, BYD continued its lead with a whopping 36.5% market share.

In fact, this sales model is not something BYD pioneered. Japanese automakers employed a similar strategy decades ago when entering Southeast Asia. Collaborating with local businesses in a united front, as opposed to competing directly with Tesla, set BYD’s marketing approach apart.

Data reveals that BYD has forged partnerships with various Southeast Asian entities, including Sime Darby, a conglomerate with over a century of history in Malaysia and Singapore, Bakrie & Brothers in Indonesia, Ayala, a renowned conglomerate in the Philippines, and Rever Automotive in Thailand.

Automobile sales consultancy firm Urban Science believes that BYD’s collaboration with prominent local conglomerates helps establish a stable foothold before gaining fame. When Southeast Asian consumers have reservations about Chinese-made cars, knowing that well-known large corporations are involved should provide reassurance, particularly in terms of after-sales service.

Recently, BYD has invested nearly $500 million in building a new factory in Thailand. Starting in 2024, it aims to produce 150,000 electric vehicles annually and export them to various Southeast Asian and European countries. AC Motors, a subsidiary of the Philippines’ Ayala Group, plans to establish more than ten BYD service centers in the Philippines within the next 12 months.

AC Motors emphasizes that the initial focus of its operations is on building brand confidence and encouraging more people to consider buying electric vehicles. Some individuals may have concerns about running out of power with electric cars or find their prices too high.

Currently, Tesla has only opened two stores in Singapore, which caters to a higher-income demographic. However, Tesla is also actively recruiting in Thailand and Malaysia. Leveraging Elon Musk’s personal global influence, Tesla can operate directly toward consumers after leaving the United States, a strategy that sets it apart from other automakers.

To increase its visibility, BYD has partnered with Sime Darby Group to launch five BYD by 1826 centers in Singapore, combining car showrooms with delicious restaurants. This innovative approach aims to attract more people to discover the BYD brand through fine dining and, in turn, become part of BYD’s growing community of car owners. (Image credit: BYD)

(Source: https://www.chinatimes.com/cn/realtimenews/20230919001709-260410?chdtv)

According to a report in the Shanghai Securities News, Xiaomi’s automobile production facility in Tongzhou, China has entered the final stages of production testing and debugging. Xiaomi Group’s Chairman, Lei Jun, has recently led the senior executives of Xiaomi’s automotive division in conducting summer road tests in Xinjiang to expedite the commencement of mass production for their new vehicles once they secure the necessary approvals.

The entire facility encompasses six workshops, including die casting, stamping, body assembly, painting, final assembly, and battery assembly. In the casting workshop, the signage for “Xiaomi Super Die Casting” has been displayed, indicating the possibility that Xiaomi’s automotive division may adopt advanced integrated die-casting technology similar to Tesla’s Shanghai Gigafactory.

As previously disclosed, Xiaomi’s automotive subsidiary, with a registered capital of 10 billion RMB, is headquartered in Beijing Economic and Technological Development Area, with Lei Jun as its legal representative. According to Lei Jun’s plan, Xiaomi’s first vehicle will be positioned in the mid-to-high-end segment and is expected to enter mass production in the first half of 2024. As of the end of 2022, Xiaomi’s automotive research and development team has grown to over 2,300 personnel, with more than 700 patent applications and over 360 authorized patents. The production of their first vehicle has been moved up to Q1 2024, with a strategic goal of achieving a top-five global automotive ranking within 15 to 20 years.

(Photo credit: Xiaomi)

According to the news from Chinatimes, Tesla, the leading electric vehicle manufacturer in the United States, achieved a record-breaking delivery volume of 466,140 units in the second quarter of this year. Meanwhile, Chinese electric car companies like NIO and BYD have made strides in the European market, increasing their sales market share from 4% in 2021 to 6% in 2022, and now reaching an impressive 8% in early 2023.

The Biden administration’s implementation of the IRA Act is expected to drive a significant increase in sales for Tesla and other EV manufacturers. It is projected that the annual growth rate for EV sales in the U.S. could potentially reach 49% this year. In China, the growth is mainly attributed to the continuation of the government’s policy of exempting consumers from purchase taxes. The estimated growth rate for Chinese EV sales this year is around 26%. In Europe, there is optimism for countries like Germany, France, and the UK, where EV penetration is currently only at around 20%. There is potential for a 37% increase in sales this year in these regions.

According to the market insider says the global EV market has witnessed fierce competition in 1H23, with major manufacturers engaging in price wars to capture market share. For instance, Tesla’s best-selling EV, the Model Y, sold 889,000 units in 1H23, accounting for around 49.38% of the total annual sales of 1.8 million units. BYD, the top-selling electric car manufacturer in China, sold 1.2556 million units in the first half of the year, achieving 41.85% of its annual target of 3 million units. Another emerging Chinese EV brand, Li Auto, also achieved a sales target rate of nearly 50% in 1H23.

Leading electric vehicle manufacturers globally, including Tesla from the United States and NIO and BYD from China, have successfully increased their sales through a series of price reduction strategies and aggressive expansion into international markets. While short-term price reductions might impact profit margins and stock prices, the long-term outlook is promising. As these manufacturers enhance their market share, potentially even achieving “super dominance” in the market rankings, the excess market share can contribute to their competitive advantage and long-term profitability, enabling them to tap into other revenue streams beyond high market share dividends.

The market forecast indicates that electric vehicle sales in 2023 could surge to 13.32 million units, representing a growth rate of over 30% compared to 2022. The driving forces behind this growth remain centered in the United States, China, and the European countries including Germany, the UK, and France. (Image credit: BYD)

(Source: https://www.chinatimes.com/realtimenews/20230829001265-260410?ctrack=pc_main_rtime_p03&chdtv)

In the face of adversities within the autonomous vehicle market, car manufacturers are not hitting the brakes. Rather, they’re zeroing in, adopting more focused and streamlined strategies, deeply rooted in core technologies.

Eager to expedite the mass-scale rollout of Robotaxis, Tesla recently announced an acceleration in the development of their Dojo supercomputer. They are now committing an investment of $1 billion and set to have 100,000 NVIDIA A100 GPUs ready by early 2024, potentially placing them among the top five global computing powerhouses.

While Tesla already boasts a supercomputer built on NVIDIA GPUs, they’re still passionate about crafting a highly efficient one in-house. This move signifies that computational capability is becoming an essential arsenal for automakers, reflecting the importance of mastering R&D in this regard.

HPC Fosters Collaboration in the Car Ecosystem

According to forecasts from TrendForce, the global high-performance computing(HPC) market could touch $42.6 billion by 2023, further expanding to $56.8 billion by 2027 with an annual growth rate of over 7%. And it is highly believed that the automotive sector is anticipated to be the primary force propelling this growth.

Feeling the heat of industry upgrades, major automakers like BMW, Continental, General Motors, and Toyota aren’t just investing in high-performance computing systems; they’re also forging deep ties with ecosystem partners, enhancing cloud, edge, chip design, and manufacturing technologies.

For example, BMW, who’s currently joining forces with EcoDataCenter, is currently seeking to extend its high-performance computing footprint, aiming to elevate their autonomous driving and driver-assist systems.

On another front, Continental, the leading tier-1 supplier, is betting on its cross-domain integration and scalable CAEdge (Car Edge framework). Set to debut in the first half of 2023, this solution for smart cockpits offers automakers a much more flexible development environment.

In-house Tech Driving Towards Level 3 and Beyond

To successfully roll out autonomous driving on a grand scale, three pillars are paramount: extensive real-world data, neural network training, and in-vehicle hardware/software. None can be overlooked, thereby prompting many automakers and Tier 1 enterprises to double down on their tech blueprints.

Tesla has already made significant strides in various related products. Beyond their supercomputer plan, their repertoire includes the D1 chip, Full Self-Driving (FSD) computation, multi-camera neural networks, and automated tagging, with inter-platform data serving as the backbone for their supercomputer’s operations.

In a similar vein, General Motors’ subsidiary, Cruise, while being mindful of cost considerations, is gradually phasing out NVIDIA GPUs, opting instead to develop custom ASIC chips to power its vehicles.

Another front-runner, Valeo, unveiled their Scala 3 in the first half of 2023, nudging LiDAR technology closer to Level 3, and laying a foundation for robotaxi(Level 4) deployment.

All this paints a picture – even with a subdued auto market, car manufacturers’ commitment to autonomous tech R&D hasn’t waned. In the long run, those who steadfastly stick to their tech strategies and nimbly adjust to market fluctuations are poised to lead the next market resurgence, becoming beacons in the industry.

For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms. Latte Chung from the Sales Department at lattechung@trendforce.com

(Photo credit: Tesla)