Chapter 619 Huanyu Group’s battery business develops rapidly

Ye Zishu looked at the office where he came last time, and said with a smile, "My President Wang, why don't you want to move?"

He didn't just say this casually. Huanyu Group has made a lot of money this year. The main source of income is the battery business. Although their motorcycle business is developing rapidly, the proportion of revenue is still limited.

According to their financial report, by July, their battery sales exceeded 200 billion yuan, of which plasma batteries accounted for the highest revenue.

Since the shipment volume of Qinglong Technology Company this year is much larger than last year, and companies under Xuanwu Technology Company and Kirin Industry Group have used their battery products on a large scale in equipment.

In addition, their international market expansion this year has achieved very good results. On the one hand, it is the result of their own efforts, and on the other hand, the demonstration effect of enterprises such as Qinglong Technology Company has been stimulated.

Many well-known international companies are now also beginning to purchase their battery products, among which lithium-ion batteries have the largest number of products.

As a result, the sales volume of their battery products has shown explosive growth compared with last year. Lithium-ion batteries alone have shipped 300 million units in the first seven months of this year, with an average price of around 500 yuan.

The revenue of lithium-ion batteries alone is as high as 150 billion yuan. This is because most people do not choose the highest battery grade for lithium-ion batteries purchased.

In order to be able to occupy the global battery market as soon as possible, Huanyu Group has classified its batteries, mainly based on the two indicators of battery unit power storage capacity and safety.

Their highest lithium-ion battery is close to the theoretical power storage capacity of lithium-ion batteries, but the price of this battery is also the highest. If it is not a high-end product, general products do not use such advanced lithium-ion batteries.

The high-end notebook computers under Qinglong Technology Company will use their top-level lithium-ion batteries. The low-end and mid-end brands dare not use such expensive battery products, so they can only choose slightly cheaper battery products.

In addition to lithium-ion batteries, their lithium iron phosphate batteries have also won a lot of markets. Like their electric motorcycles and bicycles, they all use lithium iron phosphate batteries.

It’s just that the domestic counterparts responded quickly. Not long after Huanyu Group launched its own electric motorcycles and bicycles, other companies also launched these projects one after another.

Originally, there was not much technical difficulty in these, and it was much simpler than fuel motorcycles. Not only traditional motorcycle companies saw this, but even companies that had never made motorcycles before invested in follow-up.

Because the sales of electric motorcycles and bicycles are so good, Ye Zishu originally set a production capacity of 1 million.

It was sold out a month after it was built.

This means that there may be a market size of tens of millions of vehicles in China, and even Wang Chuanfu, the president of Huanyu Group, was frightened by the popularity of this market.

In fact, it is justifiable to have such a large market, because compared with fuel motorcycles, electric motorcycles have too many advantages.

First, the cost of use is low. Domestic gasoline has already reached 3 yuan per liter, and there is a possibility that it will continue to rise. In this case, it is undoubtedly much cheaper to use electricity.

The second is that more and more cities have begun to ban motorcycles. For ordinary citizens, they still cannot afford so much money to buy a car, but they still need to have transportation, especially for short-distance travel.

It can be said that electric motorcycles and bicycles just fit the needs of urban residents, which is the root cause of the explosion of electric motorcycles.

The third is that Huanyu Group’s electric motorcycles and bicycles are really good. They can satisfy citizens for short-distance travel, and the price is relatively moderate. The average price of each bicycle is only 3,000 yuan, which is much cheaper than fuel motorcycles.

It's just that the maximum speed is limited, and the current maximum speed is limited to 50 kilometers per hour, which is absolutely sufficient for short-distance travel in the city.

There are also electric motorcycle products that compete with fuel motorcycles. The maximum speed can reach 100 kilometers. It’s not that it can’t be faster, but it’s too dangerous.

Moreover, such electric motorcycles are quite luxuriously made, and their appearance and performance are not inferior to fuel motorcycles at all. The service life is also relatively long, and the price is naturally more expensive.

The most important thing is that this type of motorcycle is equipped with an automatic balance device and auxiliary driving. These two systems were originally used in automotive products, but were used by Huanyu Group in high-end electric motorcycles and fuel motorcycles.

With the support of these two systems, as long as the car does not directly hit an obstacle, there is basically no need to worry about the danger of overturning, and if the driver has an accident, the assisted driving can take over for a short time to ensure a safe stop.

More importantly, during the driving process of the driver, the assisted driving will judge and warn the driving situation and danger, and remind the driver not to drive dangerously.

The price of this type of high-end motorcycle is very expensive. The current price is as high as 300,000 yuan. Even if it is an ordinary motorcycle, if it is equipped with these two systems, it will sell for 20,000 yuan.

Finally, there are products aimed at the market in rural areas, mainly tricycles that are convenient for pulling goods in rural areas, saving a lot of manpower consumption in rural areas.

In fact, tricycles are not expensive. A cheap tricycle only costs about 5,000 yuan, and an expensive one only costs 8,000 yuan. However, it is still relatively expensive for many farmers.

At present, the purchase of this type of motorcycle in rural areas is mainly for commercial operations. In any case, it can be regarded as a solution to the transportation problem in rural areas.

Seeing that the market is so huge, Huanyu Group naturally expanded its production rapidly, but no matter how much they expanded their production, it would be difficult to keep up with the market demand in the short term.

Therefore, it is basically impossible to monopolize this market. Seeing that many manufacturers have entered this market one after another, Huanyu Group simply expanded its production capacity to 5 million vehicles and stopped expanding.

Then they are trying to sell their own lithium iron phosphate batteries. In fact, they have calculated that the profit margin of selling batteries alone is higher than that of building an entire electric motorcycle.

Generally, the price of lithium iron phosphate batteries accounts for about 50% of the cost of the entire electric motorcycle, but the cost of producing these batteries by Huanyu Group is actually not very high, and the technology is very mature.

Interestingly, Huanyu Group also provides one-stop services for manufacturers who want to enter electric bicycles, not only providing them with batteries, but also providing them with parts and vehicle design, and even production line management services.

This measure suddenly led to the emergence of hundreds of electric motorcycle and bicycle manufacturers in China, and the entire market became a competition for the title.

The result of this is the rapid expansion of the domestic electric motorcycle market. In the first seven months of this year, the number of electric motorcycles and bicycles sold in China was 7 million.

Due to the sudden entry of too many manufacturers, the domestic sales of Huanyu Group's own products have been greatly affected, because for the sake of the market, many manufacturers have adopted price wars one after another.

And Huanyu Group is not willing to lower the price of its own products too much. Doing so makes no sense for the whole vehicle. It is better to concentrate on making parts and make more money.

Therefore, they are gradually giving up the domestic vehicle market and preparing to open up overseas markets, not only to avoid falling into the domestic quagmire, but also to earn higher profits.

Since March this year, the actual production capacity of Huanyu Group has expanded to 5 million vehicles, but they only sell 1 million of them domestically, and export the rest to foreign countries.

This move of exporting to foreign countries is undoubtedly wise. It not only avoids domestic competition, but also completely digests their production capacity, and even the phenomenon of shortage of supply.

According to their forecast, the annual market capacity of overseas markets may exceed 10 million units, and they are continuing to expand production capacity for export.

Most of the export targets are third world countries such as Southeast Asia and South America. The average FOB price of each electric motorcycle is about 5,000 yuan, and the destination price is different, which is related to various taxes and local markets. have a close relationship.

Electric motorcycles can be regarded as a surprise for Huanyu Group. The electric motorcycle business alone can bring them an annual revenue of more than 50 billion yuan.

Perhaps because of the export of electric motorcycles, although their fuel motorcycles performed well in overseas markets, they were not so popular.

However, they estimate that the possibility of annual sales of 5 million vehicles is still very high, with domestic annual sales of about 2 million units and overseas exports of about 3 million units.

The price of motorcycles is more expensive than that of electric vehicles, especially in overseas markets. The price difference is quite large. The FOB price of fuel motorcycles is generally more than 8,000 yuan, and the market price is at least tens of thousands of yuan.

The last is nickel-metal hydride batteries, which are expanding rapidly in the domestic market. The usage scenarios of nickel-metal hydride batteries mentioned by Ye Zishu before, Huanyu Group has really conducted research one by one, and is also working hard to promote nickel-metal hydride batteries in these fields.

Now they are the world's largest manufacturer of rechargeable batteries, and the home rechargeable batteries they produce have overwhelmed the previous disposable battery manufacturers.

In order to reduce the environmental pollution caused by previous batteries and to occupy the market as soon as possible, the price of Ni-MH batteries of Huanyu Group is actually not particularly expensive. In the entire service life, the cost of use is much cheaper than that of disposable batteries.

In addition, Ni-MH batteries are more environmentally friendly, and they can gain more favor from consumers, whether at home or abroad. At present, their Ni-MH batteries have occupied 50% of the household battery market.

Huanyu Group plans to completely capture the global market for nickel-metal hydride household batteries within a year or two, and Ye Shu agrees with this goal.

The energy density of their Ni-MH batteries is much higher than other Ni-MH batteries, which makes the batteries more durable, and at the same time, the price is lower than similar products, crushing competitors in all directions.

The second is the development of the industrial and commercial market. In the past, Kirin Electric Industrial Company sold so many generators to enterprises, and enterprises need to use nickel-metal hydride batteries as uninterruptible power supplies for power generation.

At the same time, nickel-metal hydride batteries are also needed as a buffer, which plays an important role in stabilizing personal power generation. At present, this kind of market accounts for the largest proportion in China.

In fact, the current domestic power supply is extremely unstable, and the power generation cannot keep up with the speed of economic development. At the same time, the power transmission capacity and stability of the previous power grid cannot meet the needs of current economic development.

Many industrial and commercial enterprises are equipped with power generation equipment and uninterruptible power supply. When the power is cut off, they can generate their own power to survive the power shortage period. This is why the small power generation equipment of Kirin Electric Industry Group is so popular.

Generally speaking, compared with last year, Huanyu Group's battery business has been fully developed, and its annual revenue may exceed 500 billion yuan.