The market demand for alternative fuel vehicles in China is booming, with a total volume of 1,004,200 in a single quarter in 2022 and a rising penetration rate of 21.13%, which is hitting the record high constantly. BYD Auto has chosen FCS as its supplier for multi-component injection molding machines, with an amount of accumulative order of approximately RMB 200 million. Specifically, the HB-R and FB-R series account for more than 70%. Driven by the carbon peak and carbon neutrality goals, technologies, such as automobile lightening and replacing steel with plastic, have shown an increase in application demands on alternative fuel vehicles. As a result, the demand for injection molding machines, one of the auto part industries, is rising as well. 

The total order amount of injecting molding machines for all production bases of BYD Auto Group is approximately RMB 3 billion this year. FCS Group, as its preferred partner, received orders for multi-component injection molding machines of FCS700T and above more than 600 in the first and second quarters of 2022. The high reliability, yield, and customization of multi-component injection molding machines have made FCS a preferred brand among customers. In 2021, the sales volume of such machines reached a record high, with an annual sales amount of RMB 500 million. FCS Group sold 600 machines, with 267,400 tons of clamping force. 

According to statistics from the Ministry of Industry and Information Technology, a total of 1,0330,000 alternative fuel vehicles have been promoted in China so far, making China an important power to lead the development of the alternative fuel vehicle industry in the world. In addition, according to the Development Plan for the New Energy Vehicle Industry (2021 - 2035), the market for alternative fuel vehicles will keep strong growth over the next decades. In a bid to satisfy the booming order demand, BYD Auto has recently invested in production expansion. For instance, it invested an extra RMB 20 billion to construct Phase II of the BYD Auto Industrial Park Shenzhen Project and the production center for alternative fuel vehicles and core parts. It also plans to invest RMB 10 billion to construct a new energy industry base in Xiangyang, Hubei province. 

With the increasing performance and quality improvement of injection molding machines, the localized production matching rate of the manufacturing of alternative fuel vehicles keeps rising as well. The injection molding machine industry has also ushered in new opportunities for its significant development due to the development of alternative fuel vehicles and will embrace its development soon.

Photo / On the morning of August 17, Li Keqiang visited BYD Auto in Shenzhen and encouraged the company to take on a challenge against the global alternative fuel vehicle leader, Tesla. 

Important Events - BYD Auto: 
BYD Auto sold 641,400 alternative fuel vehicles from January to June of 2022, with a year-on-year increase of 314.90%. It has become a global sales champion, overtaking Tesla. 
On April 3, 2022, BYD Auto announced to stop the production of complete fuel cars and focus on the business of pure electric and plug-in hybrid vehicles, making it the first automaker to stop producing fuel cars. 
On June 10, 2022, the A-share market value for BYD Auto exceeded RMB 1 trillion, making it the first independent automobile brand to join the trillion-worth market value club. 
On July 21, 2022, BYD Auto announced to begin operations in Japan, the automobile production and export powerhouse. It will accept inspections from the international high-end market to showcase its strong output strength externally. 

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