China-based car manufacturer BYD stops making fossil fuel cars

BYD Auto said it has stopped making fossil fuel cars since March, becoming the world’s first automaker to do so. The market is watching if more Chinese automakers will follow suit.

In March 2022, the company sold more than 104,300 passenger cars, the first time it exceeded the 100,000 benchmark. The sales included 50,674 plug-in hybrid electric vehicles (PHEVs), 53,664 battery electric vehicles (BEVs), and zero fossil fuel car, BYD’s data showed.

BEVs are mainly sold to consumers who want additional cars, while PHEVs target those who purchase their first car or want to change cars, former BYD chairman Wang Chuanfu said.

Wang, BYD’s founder, has stepped down as BYD’s chairman, replaced by Tian Chunlong, according to Chinese media reports.

PHEVs provide a milder transition to BEVs, enabling China to achieve its stated goals of hitting peak carbon dioxide emissions by 2030 and carbon neutrality by 2060, Wang said.

BYD’s switch to alternative fuel vehicles (AFVs) tallies with the movement of China’s auto market, market observers said.

In 2021, China made 3.545 million AFVs and sold 3.521 million units, growing 160% year-on-year. Within the first two months of 2022, China’s AFVs sales registered 765,000 units, up 150% on year, with AFVs making up 19.2% of vehicles sold in China, according to data from China Association of Automobile Manufacturers.

In 2022, BYD aims to sell 1.1-1.2 million AFVs, including 600,000 BEVs and 500,000-600,000 PHEVs, Wang said.

After BYD set the precedent, more automakers will follow suit to stop producing fossil fuel cars, market observers said.

However, not all brands can immediately switch to EVs like BYD.

Changan Automobile aims to stop selling fossil fuel cars by 2025, while Beijing Automotive plans to stop producing and selling its own fossil fuel cars in China by 2025.

Globally speaking, it may take more time to phase out fossil fuel cars, given there is still large demand for them across the world.

It is estimated that fossil fuel cars and AFVs will coexist for some time. Nonetheless, BYD’s move still marks the onset of a new era for the auto industry.

Source: https://www.digitimes.com/news