BYD reveals strategy to dominate the electric car market

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Chinese manufacturer BYD, a reference in the production of electric cars and lithium batteries, on March 29 released a promising new battery option based on the chemical compound lithium and iron phosphate (LFP), the Blade Battery. Despite appearing to be just a common marketing action, this announcement was only the first step in a strategy to dominate the electric car market, according to the Interact Analysis website.

Also in March, the manufacturer created Fugi, a brand that brings together five companies that will sell electric batteries, including Blade Battery, and other components to a variety of manufacturers.

The premise of this strategy is simple: for a technology to become standard in a given market, it must be shared by the company that developed it. A clear example of this is what Microsoft has done with Windows.

In this sense, it is not enough for a product to become a reference in quality if its availability is low. In terms of quality, the Blade Battery is already well served. With a life cycle of 1.2 million km, the battery can last up to 8 years.

In addition to being considered extremely safe, it is still more economical than other batteries. According to Interact Analysis, its cost is around $ 90 per kWh while lithium-ion batteries reach $ 158 per kWh, according to a report by Statista.com released in 2019.

The first car equipped with the Blade Battery is the Han sedan with a range of 605 km (NEDC cycle). In just 3.9 seconds, this car goes from 0 km / h to 100 km / h. Its launch was scheduled for June, but the covid-19 pandemic may have changed the calendar.

Once this technology becomes a benchmark for electric car makers, BYD will have extensive control over this market. With this, if the manufacturer follows the expected path and makes its components available to automakers, including small ones, electric cars can become increasingly accessible.


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