Concours de batteries CATL et BYD Power

La part de marché continue de croître

batterie d'alimentation

Assessing CATL's To C Strategy

Compared to its rapidly growing overseas market, CATL's domestic market performance was modest in 2023, with only a 7.2% increase. This is partly because CATL already had a high domestic market share of 50%, and partly due to the competition from BYD.In 2021, CATL's domestic market share was 52.1%. However, with competitors like BYD, Gotion High-Tech, and EVE Energy rising, CATL's market share started to decline. By 2022, CATL's share fell to 48.2%, dipping below the crucial 50% mark.As BYD's car sales soared, its subsidiary Fudi Battery's market share in the batterie d'alimentation sector also increased. In 2023, CATL's market share dropped to 42.7%, while Fudi Battery's share rose to 30.1%.Besides competition from BYD, downstream car manufacturers also preferred not to rely solely on CATL for power batteries. To ensure a stable supply and reduce dependency on CATL, many domestic car companies established diversified procurement systems. This move boosted the market share of second-tier battery manufacturers like CALB.CATL has always been a dominant player in the new energy vehicle value chain, which led to some complaints from car companies like GAC Group. Recently, CATL has been more responsive to customer needs. One strategy was the "lithium mine rebate" plan to reduce battery prices, but with falling lithium carbonate prices, this plan didn't meet expectations.Another approach was to invest more in developing new products. In August 2023, CATL launched the Shenxing 4C fast-charging Batterie au lithium LiFePO4, which offers lower prices and higher charging efficiency. Several car manufacturers, including Avatr, Neta, Chery, BAIC, Dongfeng, and GAC, announced they would use Shenxing batteries.CATL also introduced other innovative products like high-energy-density, high-safety condensed batteries, the first generation of sodium-ion batteries, and M3P batteries combining the advantages of ternary and Piles au lithium LiFePO4. These were used in Chery models, and the 5C fast-charging Kirin batteries were mass-produced with partners like Li Auto.According to CATL's Q1 2024 financial report, the Shenxing and Kirin batteries have been widely delivered. The Shenxing All-Purpose battery debuted in Xiaomi SU7 Pro, while the Kirin battery was used in Li Auto MEGA, Xiaomi SU7 Max, and Zeekr 009.Thanks to the increased shipments of Shenxing batteries, CATL's domestic market share rebounded after two years of decline. Data from the China Power Battery Industry Innovation Alliance shows that in Q1 2024, CATL's domestic market share was 48.9%, up 4 percentage points year-on-year.CATL also aims to improve its brand image among consumers through a To C strategy. Reports suggest that CATL plans to open its first offline brand store in Chengdu in August, showcasing "CATL Inside" models and creating a "New Energy Life Plaza." This plaza will cover 15,000 square meters, feature over 20 car companies, 50 models, and display more than 150 vehicles.In August 2023, CATL advertised its Shenxing batteries at airports in Beijing, Shanghai, and Hangzhou with the slogan "Charge for 10 minutes, drive 400 kilometers." In January, Mengshi Technology announced that its future electric off-road vehicle 917 would feature the "CATL Inside" logo, pioneering this branding strategy.However, there are uncertainties about the success of the "CATL Inside" strategy. Unlike Intel's dominance in the PC processor market, the automotive industry is led by car manufacturers, and power batteries are seen as less differentiated components. Additionally, car manufacturers may be reluctant to feature the "CATL Inside" logo, fearing it would increase their dependency on CATL.Moreover, CATL's experience is primarily in B2B markets, and building C2C channels will be a long and complex process. Managing cost-effectiveness and other challenges will be crucial.Despite these pressures and challenges, CATL's To C strategy might not succeed immediately and could lead to a new round of competition with downstream car companies. With BYD as a strong competitor, CATL faces a tough battle. Besides boosting its own car sales, BYD is also becoming a battery supplier for other brands. For example, Xiaomi's best-selling standard model uses BYD's power batteries, while its high-end version uses CATL's batteries. As BYD's battery business penetrates CATL's core customers, the competition between these two giants in China's new energy vehicle industry will likely intensify.

Conclusion

The power battery sector is highly competitive, with CATL and BYD leading the charge. Despite recent challenges, CATL's strategic moves, such as launching new products and expanding internationally, have helped it maintain and grow its market share. This ongoing battle between CATL and BYD will continue to influence the industry, highlighting the importance of innovation and strategic planning in staying ahead.