Synthetic Fuel (eFuel) future prospects benchmarked by BYD.
Global electric vehicle sales will reach 10 million units in 2022, indicating that BEVs will be the main stream responsible for the carbon neutral strategy. One of the centres is China’s BYD, which is making remarkable progress as the world’s largest NEV (BEV+PHEV) manufacturer with a production volume of 1.88 million units in 2022. In particular, it has gained a dominant sales share in the BEV market in the B/C segment in China and is expected to increase its presence in the global market, not only in China.
However, the importance of running internal combustion engines on synthetic fuel (eFuel) has recently been emphasised, as the production and use of BEVs consumes more energy than conventional engine vehicles, depending on the energy situation in each country, especially in regions where electricity is provided by thermal power generation.
In any case, there is no doubt that the world, which is in agreement on the goal of carbon neutrality between 2050 and 2070, will step up various initiatives to achieve carbon neutrality in the automotive sector, and that both the move to BEVs and the move to synthetic fuels (eFuel) will be addressed. Preparation is being questioned.
In particular, with battery prices remaining high and countries opting for policies that differentiate incentive payments depending on the origin of the battery as well, the right answer for a carbon neutral strategy for vehicles is becoming increasingly elusive.
In light of this current situation, this report, published in March 2023, analyses the competitiveness of BYD, which is driving the shift to NEVs in China, from multiple perspectives and analyses the ‘BYD Benchmark’ and the global strategy for utilising synthetic fuels.