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These insiders said that after investigation and analysis, BYD will focus its resources on three major areas of automobile, new energy and IT. At present, it is not necessary to enter new fields.
LED is incorporated into the new energy sector
In July 2010, BYD, which was experiencing a sharp decline in car sales, suddenly broke the news and is about to enter a new field - home appliances. It has set up an electrical preparation team, and the first new product will be launched in the second half of the year.
Subsequently, the doubts against BYD again began. To this end, the relevant person in charge of BYD rushed to Beijing from Shenzhen to discuss related matters with the reporter. At this time, the reporter told the person in charge three points: BYD's existing three major business sectors of automobile, new energy and IT, the battle line is already long enough, not to mention the growth stage, plus one of the three links. Household appliances that are not high in degree will inevitably increase business risks; if they are not familiar with it, although the technical threshold of the home appliance industry is low, sales channels and brands will be greatly challenged. Compared with the main sales of cars in the form of 4S stores, The home appliance channel is an extension of a variety of complexes, including terminal stores, chain channels, supermarket systems, regional chains, etc.; the home appliance industry is fiercely competitive, advertising wars, price wars, concept wars, service wars, etc. are endless, not to mention the profits are already very Weibo, BYD heading in, may not be profitable.
The insiders told reporters that according to the latest plan, BYD will continue to produce LED lights and other products according to orders, but the established electrical preparation team will be merged into the new energy sector.
It is planned to invest 1.2 billion to enter the LED
On December 9 last year, the “First Financial Daily†learned from the Management Committee of Huizhou Zhongkai High-tech Industrial Zone and the Management Committee of Huizhou Daya Bay Economic Development Zone that BYD’s Huizhou Daya Bay production base has ordered dozens of MOCVDs and has arrived. 5 sets of goods.
According to the relevant person in charge of the Management Committee of Huizhou Daya Bay Economic Development Zone, the total investment of LED lighting project of Huizhou BYD Industrial Co., Ltd. is 1.2 billion yuan. Although the LED output value of Huizhou BYD last year was only 0.5 billion yuan, it is expected to reach 200 million yuan this year. But as of now, Gaogong LED reporters can't get the EIA public report on BYD's LED project investment from relevant government departments in Huizhou.
"BYD LED R&D and production bases are all located in Huizhou, divided into Huizhou Phase I and Huizhou Phase II." The relevant person in charge of BYD Lighting said that the first phase of Huizhou plant has been put into operation, with an investment of about 300 million yuan. The second phase of Huizhou plant is under construction, and it is not convenient to disclose the specific investment amount.
The watershed of BYD's LED business in 2011
On March 11, Zhou Fei, an analyst at Nanjing Securities' home appliance industry, said in a telephone interview that BYD had no advantage in entering the traditional home appliance industry. The profit of the traditional home appliance industry mainly comes from the scale advantage and the channel advantage. BYD does not have these two aspects.
For the aspect of LED products, Zhou Fei believes that 2011 will be a year of concentrated LED products. Because the phenomenon of “pre-emptive†in the home appliance industry is very serious, if BYD can't open the situation in LED in 2011, it will be more difficult to enter later. . 
BYD crisis four times into a LED business watershed in 2011
Recently, several insiders of BYD (01211.HK) told reporters that BYD has decided not to have plans to enter the traditional home appliance industry for at least one or two years.