Geely and BYD: The pinnacle of new energy competition in China's auto industry.
1.Background.
As China's auto market enters the new energy era, Geely and BYD have become the focus of attention. In the past few years, Geely has been the top seller of domestic cars, however, the turning point of 2022 has come, BYD has successfully replaced Geely's hegemony, opening a fierce competition in the field of new energy. This article will delve into the founders' background, development history, transformation and acquisition process, new energy vehicle development, market value comparison and stock price trend of Geely and BYD, as well as future prospects and challenges.
2.Comparison of the background of the founders of the company.
Geely's founder, Li Shufu, was born into a farming family in Zhejiang Province and gradually emerged through the process of individual economic entrepreneurship. In contrast, Wang Chuanfu, the founder of BYD, devoted himself to research in the field of batteries through hard study and founded BYD. The differences in the backgrounds of the two founders directly influenced the direction of their business in the early days.
3.Comparison of enterprise development history.
In the early days of Geely's establishment, it imitated other brands, and the low-price sales successfully brought market share in the short term, but also made Geely a low-end representative. In contrast, BYD focuses on the development of new energy technologies, and has successfully broken the traditional market through modular production, winning 40% of the global battery market share. The development history of the two reflects different strategic choices and market positioning.
4.Corporate Transformation & Acquisition Journey.
Geely has made a leap from a low-end to a high-end brand through a series of snake-like acquisitions, such as Volvo and Proton. Relatively speaking, BYD has been focusing on new energy technology, and has become a global leader in the field of new energy through the acquisition of London manganese copper and Proton Motors' layout in the field of new energy. The different acquisition journeys of the two companies reflect different predictions about the future direction of the automotive industry.
5.Development of new energy vehicles.
In the field of new energy vehicles, Geely invested in research and development relatively late, and put forward the "Blue Geely Action" plan relatively late. Relatively speaking, BYD took new energy technology as the focus of development at the beginning of its establishment, and successfully launched battery technology, making its sales exceed Tesla's in 2023, and its market value exceeded one trillion for the first time. The difference in the performance of the two in the field of new energy has attracted the attention of the industry.
6.Market capitalization comparison and stock price trends.
Geely has seen a decline in market capitalization and stock price, with its market value falling from 100 billion to about 100 billion, and its stock price has increased by more than 70%. Relatively speaking, BYD's market value has exceeded 500 billion yuan, rising steadily, breaking through the trillion market value for the first time, showing its strong performance in the market. The market capitalization comparison reflects the gap between the two in the market competition.
7.Future Prospects and Challenges.
Geely proposed the intelligent transformation of new energy, emphasizing technology, quality, and brand warfare. However, faced with the challenges of declining market value and insufficient proportion of new energy sales, Geely needs to work harder. Relatively speaking, BYD shines in the global automotive industry, but it still needs to face the challenges of competition and innovation. The two will continue to compete fiercely in the outlook for the future.
8.Geely's new energy vehicle strategy.
Geely's development plan in the field of new energy is gradually becoming clear, and its "Blue Geely Action" plan focuses on improving the technical content of new energy vehicles, focusing on intelligent and green travel. By promoting the research and development of electric and hybrid models, Geely plans to increase the proportion of new energy vehicles in its overall sales in the next few years.
9.BYD's new energy vehicle layout.
BYD has been investing heavily in the field of new energy, and has become one of the world's leading new energy vehicle manufacturers by promoting the research and development of electric vehicles and battery technology. Its layout in the field of new energy not only includes electric vehicles, but also involves batteries, charging facilities and other aspects, forming the advantages of the whole industry chain.