Where does BYD at the crossroads go?

Before the beginning of the autumn, Xia Zhibing, the general manager of BYD Auto, left the company, and the successor was Hou Yan.

Compared to the high exposure and high visibility of Xia Zhibing, Hou Yan is obscure and he took over the post of general manager of BYD's production and business planning department. Hou Yan belongs to BYD's own cultivated talents. He served as vice president of sales for BYD Auto and led sales companies including marketing, sales, and after sales.

After the beginning of the fall, Hou Yan took over all the business that Xia Zhibing was responsible for. What is before him is a big burden. According to statistics released by the China Association of Automobile Manufacturers on August 10, from January to July this year, sales of BYD autos fell for the seventh consecutive month, becoming the only auto company that has experienced a year-on-year decline for seven consecutive months. In the top ten car manufacturers from January to July this year, BYD ranked No. 7 with 247,900 units. However, compared with 321,200 units sold in the same period of 2010, the decline rate was close to that of BYD. 75,000 vehicles, while the main model F3, sold only 121,500 vehicles from January to July, a decrease of 47,300 vehicles from the same period last year.

Compared with the once brilliant achievements, such data appears quite bleak. Many of the external reasons are apparent. BYD's own reason is the focus of the dilemma.

How is the dilemma formed?

When Li Feng launched a sub-net sales model and achieved good results at Chery Automobile, BYD Auto once envied and began to follow suit. Therefore, under the condition that the number of models was not large, the sub-net sales model was vigorously promoted, and A1 was soon formed. A2, A3, A4 four sales networks, including A1 sales of F6, F3, S6 models; A2 sales of F0, F3R, S8, L3 models, A3 sales of G3, F3R, E6 models, A4 sales of M6 models. This model has brought abrupt sales to BYD in the high-speed blowout of the automotive industry in 2008 and 2009. By virtue of its high growth rate of 162%, BYD has created the “BYD myth” in the industry and it has become the fastest growing automobile company. The top ten domestic auto manufacturers are sold, and BYD's dealers have also grown from more than 20 to over one thousand. Xia Zhibing is also very proud of this.

However, the rapidly expanding BYD at this time appears to be overbearing, lacks sufficient protection for distributor channels, and even overpresses, unreasonably mentions unreasonable car-raising tasks. In addition, many problems in the business policy have caused many dealers to be locked up and touched. On the market in the first half of 2010, BYD’s many dealers did not make money or even lose money, and they began to revolt. The withdrawal of the Internet has intensified. According to public information from BYD, as of December 31, 2010, A3 and A4 network distributors had their network retired rates as high as 27.83% and 31.91% respectively, while A1 and A2 network dealers retired as 12.97% and 27.6% respectively. . The high net retirement rate has directly led BYD to complete sales of 520,000 vehicles in 2010, which is far from the expected value of 800,000 vehicles for production and sales targets at the beginning of the year.

This situation has not changed in the past seven months this year. In the past seven months, the automobile industry has introduced more and more restrictive policies. From production to circulation and use, it has become more and more widespread. However, stimulus policies have been withdrawn in succession. The cold market has exacerbated BYD's performance. landslide. Formed today's dilemma.

Xia Zhibing's work and experience in BYD 13 years, Xia Zhibing participated in the creation of a BYD era, its branding deeply retained in BYD's marketing system. Xia Zhibing graduated from Peking University Guanghua School of Management in 1998 with BYD. In 2003, he led the team to the automotive industry. In 2005, he officially became the general manager of the sales company and began to use his unique creativity. In the same year, he adopted the original "sub-station" and "rural The marketing strategy surrounding the city's use of high cost-effectiveness has directly contributed to the F3's rapid development, with a monthly sales record of 36,100 units. In 2009, it became the largest domestic sales car, and it has been selling well to the present. Under the leadership of Xia Bingbing, BYD expanded its huge sales network in just a few short years and developed thousands of dealers. At the same time, it once again saw annual sales and created many myths of independent brands. It is a miracle.

But even God is making mistakes, not to mention people. While over-pursuing sales, BYD ignored the feelings of distributors and consumers that condense around it. When the NSF flooded the major automotive forums to promote F3 and F6 as Goddess vehicles, when blindly pressing dealers to pursue vehicle sales, BYD's sales when extremely unequal and lack of business policies were adopted. The strategy began to detour. If a company holds a stocking mentality with its own sales channels, regardless of whether it is ignored or arbitrarily squeezed, then sooner or later it will be a betrayal and deportation. Although BYD later took rescue measures and sincerely made an apology, it surrendered some of its markets and dealers to its competitors, affecting its own sales. It is rude to say that Xia Zhibing should be responsible for BYD’s misconduct strategy. Whether you are willing or unwilling, you must recognize and face this fact.

For BYD, the departure of Xia Zhibing might not necessarily be a bad thing. Instead, it pushed BYD to a crossroads. This major personnel change will inevitably cause internal thinking in BYD, and it may be able to adjust the pace, because the facts have proved that the original “fast, fierce, and big” model is not continuous.

How did BYD go after the summer ice era?

BYD will not go away because of a summer rule, and the company will not change. In BYD, there are more than 20 senior executives at the same level as Xia Zhibing. Although their names may not be familiar, most of them have rich practical experience. Hou Yan is one of them. one. When he took over as general manager, Hou Yan had an overstatement. BYD's sales team will remain stable and the company's sales strategy will not change.

For Hou Yan, it is impossible to expect a breakthrough in new energy vehicles in the short term, nor can he expect much of the luck and miracle that Buffett will bring. He can only rely on his own efforts to lead BYD, which has once again taken off. Perhaps the S6 S6, which has won multiple sales championships since its IPO, and the mid-to-high-end car G6, which will be launched in September, can play an important role in BYD sales growth, brand promotion, and market recognition.

The slowdown in the growth of the auto market, deterioration of the automobile consumption environment, and the departure of Xia Zhibing pose a threat to BYD Auto and also give it an opportunity to introspect, think, and promote. In the past few years, the company has been busy expanding its production capacity, expanding its channels, and expanding its capabilities. This year, BYD's own-brand auto companies have slowed their pace of production expansion and focused more on improving quality, improving technology, and improving To manage and shape the product image and further promote structural adjustment and industrial upgrading, this will lay the foundation for BYD's greater success in future competition.

Where the future of BYD goes, we wait and see how it changes.