Core Viewpoint - BYD continues to dominate the electric vehicle market, achieving a weekly sales record of 67,980 units in the second week of May, a 12% increase from the previous week, marking the highest sales in nearly six months [1] Group 1: Market Dynamics - BYD is expanding its ambitions in the power battery market by launching electric two-wheeled and three-wheeled vehicle batteries, signaling a shift away from lead-acid batteries towards lithium iron phosphate technology [1][3] - The electric two-wheeler market has seen a significant decline in the penetration rate of lithium battery vehicles due to fluctuating raw material prices, leading to a decrease in sales [7] - The majority of electric two-wheeler sales are concentrated in the entry-level (below 1,500 yuan) and mid-range (1,500 to 3,500 yuan) segments, with most popular models priced between 1,000 and 3,000 yuan [4][8] Group 2: Competitive Landscape - Lead-acid batteries still dominate the electric bicycle battery market, accounting for nearly 80% of usage, with major players like Tianneng and Chaowei leading the market [8][10] - In the first half of 2024, Tianneng's lead-acid battery business revenue reached 20.137 billion yuan, making it the industry leader, followed by Chaowei with 12.658 billion yuan [9] - The market is characterized by a stronghold of lead-acid battery giants, which poses a challenge for BYD as it attempts to penetrate the market with lithium batteries [10][12] Group 3: Consumer Preferences - Consumers prioritize practical range over extreme performance, with the ideal single-charge range being around 60 km, and 50-80 km being the mainstream demand range [11] - The price of lithium battery two-wheelers is nearly double that of lead-acid counterparts, which may hinder BYD's efforts to capture market share in the price-sensitive segment [3][4] - The safety concerns surrounding lithium batteries, particularly due to past incidents of fires, have made consumers cautious about transitioning from lead-acid to lithium batteries [11][12] Group 4: Industry Challenges - The transition from lead-acid to lithium batteries has faced setbacks, with major brands like Yadi and Aima pausing their shift towards lithium technology due to market conditions and consumer price sensitivity [3][4] - The significant price difference between lithium and lead-acid batteries remains a major barrier for widespread adoption in the two-wheeler market [7][8] - The competitive landscape is further complicated by the low manufacturing barriers in the low-speed electric vehicle sector, which may lead to increased competition for BYD [13][15]