Car manufacturers

BYD shares jumped more than 6%  after the company unveiled a line up of BEVs supported by ultra fast charging. The new system can provide c400km autonomy with a 5 mins charging time. The new vehicles will be available as of next month.

This is a significant news in our opinion

1- It potentially removes the single most important reason not to buy a BEV. Indeed, with a similar charging time (5 mins for 400 KMs of Autonomy) as a petrol car, autonomy is no longer an issue which totally changes (at least for me) the expected benefit of switching to an electric vehicle.

2- It highlights that the Chinese car manufacturers are significantly ahead in terms of technology when it comes to all key components (software and battery technologies). Unless we have significant trade barriers, it will be difficult for European cars to be competitive on the BEV field.

3- It also means that infrastructure will be key for BEV adoption. It could be interesting for companies that provide high power semiconductor used in those BYD super chargers. This is good news for NXP and Infineon in our view. NXP has expertise in battery management software and Infineon is a major supplier of power semiconductor inverters (turning DC to AC) to BYD.