With the surge in introduction of battery electric vehicles (BEVs) as the government is providing tax exemption for a few years, we’ve been seeing a number of brands from China coming into the Malaysian market. It coincides with the increased export activity by the Chinese companies in recent years, particularly with EVs as the country has the largest market in the world.
The latest is BYD Auto which officially made its debut today with the launch of its first model, the ATTO 3 SUV. Its commencement of business has been exceptionally quick as the distributorship agreement with Sime Darby Motors (SDM) was inked only in September this year. Clearly, the two companies had already been having earlier discussions and had plans in place by the time the agreement was signed and announced.
With products from BYD Auto, now among the top 5 BEV companies in the world, SDM has another brand of electrified products to offer. From starting with just the electrified models of BMW and MINI, it now has BEVs from Porsche, Hyundai and Volvo which are sold by its various units. BYD and Hyundai are likely to provide the entry-level models in coming years while the other brands cater to customers further upmarket.
Toyota’s second model in its bZ battery electric vehicle (BEV) range is the bZ3, and it has been developed for the Chinese market using a different approach to product development. This approach has involved two other companies – BYD Company Ltd and FAW Toyota Motor.
Each company is a leader in its own field: Toyota in automobiles, BYD in batteries and FAW Toyota having the production facilities and network coverage across China. Over 100 Toyota engineers from the design, production, engineering, and quality control departments participated in the development, working together with engineers from BYD and FAW Toyota.
Automotive brands from China are not new to the Malaysian market and were already selling their products 20 years ago, mainly in the commercial vehicle sector. In recent years, perhaps encouraged by the partnership Geely was able to form with DRB-HICOM in Proton, more brands are making their appearance.
Among them will be BYD Automobile (BYD stands for ‘Build Your Dreams’), which will be distributed by Sime Darby Motors (SDM) Malaysia. The two companies have formalized the partnership with the signing of a Distribution Agreement which also involves PT. BYD MOTOR INDONESIA.
There were electric vehicles 100 years ago; in fact, even Henry Ford’s wife, Clara, drove and electrically-powered car because it was easy to start and had no transmission. However, battery technology at that time was not advanced and poor performance made electric cars unappealing, allowing cars with internal combustion engines to grow and then dominate the planet. With poor interest in electric cars, the manufacturers stopped developing them and would not consider them again till the 21st century.
During the 100 years, many technological advances have been made and in the past 20 years especially, battery technology – an important element for electric vehicles (EVs) – has advanced greatly. The incentive to accelerate technological development has been the tightening of emission regulations, especially in the more developed nations, which has forced carmakers to start switching to emission-free powertrains. There is urgency as well due to climate change, with exhaust emissions of motor vehicles being identified as one of the causes.
The technology and manufacturing processes for the internal combustion engine (ICE) have been developed over more than 100 years so production costs have stabilized and as volumes grew, economies of scale kept pushing the costs down. EV technology is relatively young and the volume of EVs has not reached a point where economies of scale have fully kicked in. As such, the technologies – which are still evolving and advancing – are still expensive and EVs equivalent to ICE vehicles are still more expensive.
In order for EVs to be adopted by more people, the auto industry expects governments to help. Obviously, funding cannot be provided directly but the prices to buyers can be offset by subsidies. The lowering of retail prices can then attract motorists to consider them, while other elements like infrastructure and performance continue to get better.
Many countries have subsidies for EV buyers and the nature of the subsidy varies. Typically, there is a fixed sum provided based on the price although in Malaysia, from this year, the government has decided to exempt battery electric vehicles (BEVs) from duties and other taxes and even the annual roadtax will not be charged. It’s a bold move but it does not necessarily bring prices down below RM100,000 so a large segment of the population will still not find it easy to buy one. And there is no point using the argument of ‘saving the planet’ because many Malaysians today have to save themselves and their families from financial difficulties, so they certainly won’t care to pay more for their car.
China, as the world’s largest car market, has had an incentive program since 2009 when it introduced subsidies for New Energy Vehicles (NEVs), ie BEVs, plug-in hybrids (PHEVs) and fuel cell vehicles (FCEVs). The NEV program actually began in the 1980s but the incentive policy only began in 2009, with nationwide adoption from 2013. To qualify for subsidies, the vehicles must meet minimum technical and performance requirements, and the size of the subsidy is indexed to a variety of vehicle specifications and utility parameters. Every few years, the qualification criteria have been tightened, forcing manufacturers to push their technology further.
As qualification criteria for subsidies tightened during the past decade, the manufacturers had to keep improving their EV technologies.
By the end of 2020, the NEV push had resulted in 4.92 million NEVs being put on China’s roads, or 1.75% of the vehicle population. The number almost meets the 5 million target set in 2013 and having reached this level, the government now believes that acceptance has been achieved and NEVs are in the mainstream of the car market. This year NEVs are expected to account for 18% of all vehicle sales in China (13% greater than in 2019) and add another 5 million NEVs according to industry forecasts.
With this year being the final year that EVs will be subsidised, there should be increased interest and higher sales in China.
And with that target achieved, it has now decided that subsidies can be phased out completely. In fact, in April 2020, there was already an indication of this when it was announced that subsidies would be reduced by 20% in 2021. This year, the cut will be 30%, after which there will be no more subsidies provided from January 1, 2023.
The subsidies have typically applied to vehicles costing less than RMB300,000 (about RM197,130). A typical subsidy has been around RMB18,000 (about RM11,800), and in 2022, it will fall to around RMB14,400 (about RM9,500).
Tesla Model 3 was among the best-selling NEVs in China last year.
The domestic carmakers have already reached large volumes that allow them to have economies of scale. BYD, an early EV manufacturer, was already doing over 753,000 EVs in 2019, second after world leader Tesla which sold 900,000 EVs.
Moving forward with the technology for New Energy Vehicles (NEVs) is vital for carmakers operating in China as the government’s industry development plan from 2021 to 2035 aims to boost this segment of the world’s largest automobile market. BYD (Build Your Dreams) has been among the leaders in electric vehicles (EVs) and is preparing for a new range of products with a dedicated platform.
Known as the ‘e-platform 3.0’, it will be used for vehicles of varying sizes and will be open to the industry to facilitate the development of intelligent EVs worldwide. Equipped with ultra-safe blade batteries integrated into the car body, the e-platform 3.0 is the basis of a special pure electric vehicle frame structure to increase the rigidity of the vehicle.
5-minute charge = 150 kms range
The new platform enables ranges claimed to be able to exceed 1,000 kms with the world’s first 8-in-1 electric powertrain. In addition, the world’s first fast charging technology enables a range up to 150 kms after just 5 minutes of charging. The original designed direct cooling and heating system for batteries increases the thermal efficiency by up to 20% while reducing energy loss.
Additionally, the heat pump system which can work at temperatures from -30℃ to 60℃, has increased the range by up to 20% in winter, since the system leverages the residual heat from surroundings, the powertrain, passenger compartment and even the batteries. Finally, there’s an electric AWD system that will enable a 0 – 100 km/h time claimed to be 2.9 seconds. The energy consumption is said to be comparable to that of 2WD vehicles.
Ocean-X concept
To present the e-platform 3.0, BYD designers came up with the Ocean-X concept, a mid-size sporty sedan with high performance. Featuring short overhangs and a long wheelbase, the Ocean-X has generous passenger space, while the low body helps in aerodynamic efficiency, bring the drag coefficient down to 0.21 Cd.
The e-platform 3.0, which encompasses the drivetrain, braking, and steering systems, was originally developed in 2018. It uses the industry’s first drive train domain controller which has been developed through the full utilization of the electric motors’ fast response (already applied to the EA1 model). BYD has independently developed the BYD OS which decouples hardware and software, offering a superior collaboration system for high levels of intelligent driving.
THE BYD STORY
Like many of the carmakers in China, BYD has a history that goes back only to the pate 20th century. It was established in 1995 with just 20 employees and focussed on rechargeable batteries. Its timing was good as demand or mobilephones and portable electronic devices began to rocket in the 1990s. By 2005, BYD was China’s largest battery manufacturer and produced half of the mobilephone batteries on the world market.
BYD describes itself as a high-tech company which has a presence in industries related to electronics, automobiles, new energy and rail transit. To enter the automobile market, it acquired Qinchuan Automobile Company in 2002 which became BYD Auto. Its focus on electrically-powered vehicles complemented its leadership in battery production, and in 2003, it produced its first car. 5 years later, its F3DM was the first commercially-produced plug-in hybrid in the world.
The plug-in hybrid powertrain in the F3DM was the first commercially produced PHEV in the world.
The carmaker got a boost in 2008 when one of the richest men in the world, Warren Buffett, became a shareholder, paying US$232 million for an 8.2% through his company Berkshire Hathaway. Its share in the Chinese company is even higher than in General Motors which is 3.7%.
Today BYD Auto’s EV is very broad and includes buses, taxis, coaches and passenger cars, as well as logistics, construction and sanitation vehicles. Its products are sold in more than 50 countries and regions. In the USA, its 4-year old factory making electric buses is the largest of its type wholly owned by a Chinese company.
The company’s factory in America makes electric buses which are used in many cities.
Last year, BYD set up a factory in India to make 3 million facemasks a day to meet the sudden surge in demand globally.
Last year, in support of the battle against the COVID-19 pandemic, BYD established the world’s largest facemask factory in India. It can produce 5 million facemasks, as well as 3 million disinfectant bottles, every day.
According to available data for EV Sales, in July 2021, BYD returned to the top of the global NEV sales in a single month after 26 months, surpassing Volkswagen to claim third place in terms of cumulative sales from January to July. After hitting the 50,000-unit mark, BYD’s monthly new-energy passenger vehicle sales continue to grow, positioning BYD as a dominant player in terms of market share.
China’s BYD, which started off in 1995 as a company making batteries, is getting ready to enter the competitive premium luxury market in Europe. And it will do so with its new flagship model, the Han EV. The Han EV is the first full-electric passenger car equipped with BYD’s advanced ‘Blade Battery’ technology said to deliver greatly enhanced safety, improved range capability and a simplified, smaller pack design.
Drawing on its 25 years of developing battery technology, BYD is using its most advanced EV technologies for this model. The Blade Battery pack has been developed by BYD over the past several years. The singular cells are arranged together in an array and then inserted into a battery pack. Due to its optimized battery pack structure, the space utilization of the battery pack is increased by over 50% compared to conventional lithium iron phosphate block batteries.
BYD mentions safety a lot with regard to the battery pack because it has seen that, in the past few years, many EV manufacturers have fallen into a competition for ever-greater cruising range. When the range becomes the prime factor to consider, this focus then leads to ‘unreasonable pursuits of ‘energy density’ in the battery industry’. In the company’s view, this is not a practical focus as safety considerations are diminished in power battery development. BYD’s Blade Battery is said to bring battery safety back to the forefront, a redirection from the industry’s tenuous focus on this crucial aspect.
To this end, it has subjected it to extreme tests. For example, in nail penetration tests, the battery pack emitted neither smoke nor fire after being penetrated, and its surface temperature only reached 30°C to 60°C. Under the same conditions, a ternary lithium battery exceeded 500°C and violently burned, and while a conventional lithium iron phosphate block battery did not openly emit flames or smoke, its surface temperature reached dangerous temperatures of 200°C to 400°C.
Other extreme test conditions included being crushed, bent, being heated in a furnace to 300°C and overcharged by 260%. None of these resulted in a fire or explosion.
The Blade Battery pack can produce a stable current of up to 800 amps. With power from a high-performance silicon carbide motor-control that has improved peak-current capacity of 58%, the Han EV is claimed to be able to go from standstill to 100 km/h time in a claimed 3.9 seconds, with the fully-charged battery pack able to last for up to 605 kms.
The Han EV is also China’s first mass-produced EV equipped with the ‘IPB Intelligent Integrated Brake System’ by Bosch. This system not only brings braking safety with higher precision but also delivers a longer range and improved braking comfort.
BYD Blade Battery Pack
While BYD has pursued the tradition of naming its passenger cars after Chinese dynasties, the Han EV has been conceived, designed and manufactured to the standards more in tune with luxury European cars.
The 4980 mm long sedan has BYD’s new ‘EV Dragon Face’ design language, blending elements of a traditional Chinese Dragon with modern European design cues. The curved front-end and Daytime Running Lights evoke the shape of a traditional Chinese dragon’s face. The high waistline evident along the length of the vehicle integrates seamlessly with the sweeping back line of the D-pillar to deliver a strong sense of movement. A tapered rear lighting cluster envelopes the entire width of the car emphasizing a dynamic attitude.
“The use of the ultra-safe Blade Battery, as well as BYD’s in-house pure electric platform, body structure design, eco-friendly materials and safety systems make the Han EV the safest electric car currently on the market. We believe that the Han EV combines the best of Eastern wisdom and Western aesthetics,” said Yubo Lian, Senior Vice-President of BYD and President of the BYD Auto Engineering Research Institute.
Due for introduction in China at the end of June 2020, the Han EV will go on sale in Europe in due course. The company is confident it can be a contender in the premium-spec, executive car segment and expects to price it in the €45,000 to €55,000 range (about RM212,000 – RM259,000). It is not known if BYD will produce righthand-drive versions, though.
