BYD's Blade battery is supposed to be the safest, but its EVs are still going up in flames in China

$BYD COMPANY (01211.HK)$ The article revealed some reports in China that BYD electric vehicles (EV) going up in flames went viral. To date, neither the Chinese authorities nor BYD has made public the results of their investigation into the cause of these burning BYD EVs. Here are some highlights in the article:

1) Viral incidents of BYD electric vehicle going up in flames

Chinese speaking readers who actively follow mainland China's automotive sites however, will know that the situation is very different in BYD's home country. Ironically, the people who have the worst things to say about BYD are BYD’s own customers in China, while foreigners are BYD's biggest fans. Curiously, viral incidents of BYD Blade battery-equipped cars going up in flames in China – something which BYD’s outlandish lab demos say is almost impossible – are glossed over in the West.

2) Media in the West versus in China
The same people who are very quick to vilify missteps of Chinese companies, or China's controversies in Xinjiang, will pretend to look away every time a BYD catches fire in China. So what's happening here? Perhaps the fact that the top-3 biggest shareholders of BYD apart from founder Wang Chuanfu, are Berkshire Hathaway, Himalaya Capital Management, and the Vanguard Group - all American funds - is a reason behind the positive PR for BYD in the West versus in China?

3) 7 burning BYD branded BEV daily on average

Between 2020 and 2021, there were only 86 fires involving BEVs. But in the first quarter of 2022, reported fires involving BEVs suddenly shot up to 640 cases! This is according to China’s National Emergency Management Department, which supervises the Chinese fire and rescue services.On average, Chinese fire fighters are called to put out 7 burning BEVs every day! Guess which EV brand have the most cars going up in flames? Yup, BYD.

4) BYD cars called 'Emperor of spontaneous combustion'

So prevalent are reports of burning BYDs on Chinese local news that Chinese netizens now call BYD cars the ‘Emperor of spontaneous combustion,’ a sarcastic reply to BYD’s claim that its Blade batteries are so safe that it will banish spontaneous combustion from the Chinese dictionary of electric vehicles.

5) Real-world experience is very different BYD’s outlandish claims

But it’s a weak defence because the raison d'etre of BYD’s Blade battery – released in China in March 2020 - is that it is so safe, that it’s nearly impossible for it to go up in flames. Not even driving a nail into one or being crushed by heavy trucks would cause it to short circuit and burn. Chinese consumers now understand that real-world experience is very different BYD’s outlandish claims – suggesting that either BYD's lab demonstrations were rigged, or there is a fundamental design flaw with the packaging of BYD’s Blade batteries.

6) Reports may have malicious intent
To date, neither the Chinese authorities nor BYD has made public the results of their investigation into the cause of these burning BYD EVs. BYD fans however, say that a lot of these reports have malicious intent and were amplified by rival Chinese car makers losing market share to BYD. There could be some truth in this, but it doesn't change the fact that BYD's Blade batteries are burning even the company says it won't. The whys and the hows behind these fires, are still unclear.
Without conclusive forensics analysis, it is hard to ascertain if there is a malicious reason behind these BYD electric cars going up in flames, or if BYD is the victim of a smear campaign.
7) BYD treated as nation's golden child
What is clear however, is that the Chinese government is treating BYD like it's the nation’s golden child. When BYD’s proposal to invest USD 1 billion in India was rejected by the Indian government, China’s then top diplomat (now Foreign Minister) Wang Yi made a rare intervention on BYD’s behalf, encouraging India to “enhance strategic mutual trust” and “focus on consensus and cooperation.”