BYD and Geely Clash Over World's Most Efficient Engine Claim: A Battle for NEV Supremacy

BYD and Geely Clash Over World's Most Efficient Engine Claim: A Battle for NEV Supremacy

On May 29, BYD unveiled its fifth-generation DM hybrid technology, claiming it achieved three global records, including the highest engine thermal efficiency of 46.06%. In response, Geely's executives posted a certification from the China Automotive Technology and Research Center, asserting that Geely's Thor engine had already achieved a thermal efficiency of 46.1%. The public disagreement between BYD and Geely highlights their competitive stance in the evolving automotive market.

Key Takeaways:

• BYD introduced its latest hybrid technology with a reported engine thermal efficiency of 46.06%.
• Geely countered by showcasing a certification claiming their engine’s efficiency at 46.1%.
• The public exchange signifies intense competition in the Chinese automotive sector, particularly in the transition to new energy vehicles.
• Both companies aim to dominate the market, leveraging their respective technological advancements and strategic moves.

Analysis:

BYD's announcement about its fifth-generation DM hybrid technology positioned it as a leader in engine thermal efficiency, fuel consumption, and overall vehicle range. Chairman Wang Chuanfu emphasized BYD’s pricing power in the 100,000-200,000 RMB segment. Geely, once the leader among Chinese automakers, quickly challenged BYD's claims. Xu Dongwei, a senior executive at Geely, posted on social media that Geely's Thor engine had already received certification for achieving a higher thermal efficiency.

The competitive dynamics between BYD and Geely are rooted in their different approaches and timelines in the new energy vehicle (NEV) market. BYD has focused on NEVs since its inception in 1995, while Geely started its serious foray into NEVs in 2006. Geely’s multifaceted strategy includes diverse technological routes like hydrogen fuel cells, pure electric, methanol, and hybrid powertrains. This approach has led to a robust portfolio of brands and models catering to various market segments.

Geely's recent launch of the Lynk & Co 07 EM-P hybrid sedan, priced competitively at 169,800 RMB, exemplifies its aggressive push into the hybrid market dominated by BYD. The vehicle's features and initial sales performance indicate Geely’s intention to reclaim market leadership.

Additionally, Geely's advancements in smart manufacturing and satellite technology highlight its innovative efforts beyond traditional automotive manufacturing. Chairman Li Shufu’s vision includes integrating satellite internet technology to meet the growing demand for connectivity, demonstrating Geely’s forward-thinking approach.

Did You Know:

• Geely's "Blue Geely Initiative," launched in 2015, aimed to achieve 90% NEV sales within five years, but by 2020, NEV sales only accounted for 5.2%.
• In 2022, BYD sold approximately 1.85 million vehicles, surpassing Geely’s 1.43 million, becoming the top seller among Chinese car brands.
• Geely has multiple brands under its umbrella, including Polestar, Geometry, Zeekr, and international brands like Volvo, Proton, and Lotus.
• Geely’s strategic export efforts saw record high overseas sales in March 2024, contributing significantly to its growth, particularly in markets like Southeast Asia and Latin America.

The public spat between BYD and Geely underscores the fierce competition and rapid innovation in China’s automotive industry, as both giants strive for supremacy in the burgeoning NEV sector.