There has been speculation for a few years now that the BYD, one of the largest companies in China, had plans to enter the e-cigarette market with its own brand. Better known as a car manufacturer and battery producer, BYD Electronic shares surged on the Stock Exchange of Hong Kong by as much as 12.5 percent Thursday after the company announced a subsidiary has been granted a license to produce vaping devices.
“The unit has been granted a tobacco production business license by the State Tobacco Monopoly Administration [STMA],” BYD Electronic said on its WeChat account, according to YiCai Global. Such permits only started to be issued this year in accordance with new regulations. As of Aug. 4, more than 130 firms had been licensed, according to the STMA website.
“The BYD subsidiary already has a full range of electronic atomization products ready to be patented and is investing in automated production lines, said BYD Electronic, which is the sister company of electric car and battery giant BYD Automobile,” the company stated in a release. “At present, BYD Electronics has completed the patent layout of a full range of electronic atomization products and the construction of automated production lines, fully integrating its own comprehensive capabilities such as new material research and development, precision molds, product design and development, and intelligent manufacturing, and is committed to becoming a Practitioners and leaders in the field of health harm reduction, providing users with excellent products of quality and peace of mind.”
In 2021, BYD said its e-cigarette business was mainly based on brand OEMs, and “there is no independent listing plan.” BYD Electronics has operated in the e-cigarettes field since 2018. It launched the brand “Beem Core” for ceramic atomizing core technology in 2021.
Once it starts full production, BYD will go head to head with industry leader Smoore International, which held 22.8 percent of global market share last year, according to Frost & Sullivan research.
BYD Electronic was spun off from Shenzhen-based conglomerate BYD in 2007 to make cell phone components and printed circuit boards. Its business remit has since expanded to include smartphones, laptops, masks and now, e-cigarettes.
BYD joins industry late-comer Luxshare Precision, a global designer and manufacturer of cable assembly and connector system solutions, and several other China-based manufacturing enterprises as new vaping industry players.