On August 4 2022, it was announced that China’s State Tobacco Monopoly Administration had issued a tobacco production enterprise license to BYD electronics. This effectively made the BYD precision manufacturing wholly owned subsidiary the newest kid on the block in China’s growing e-cigarette market.
The company has already made applications for patents for some electronic atomization products that it intends to start marketing under the license. It also has production lines set it up ready to start manufacturing. It is all system go for BYF electronics as it sets up its intelligent manufacturing processes and integrates its precision molds upon the receipt of the license.
BYD, the parent company assured potential customers and the general public that its electronic arm will strictly follow all policies and guidelines laid down by the government regarding the production, sale and use of electronic cigarettes. It is already following all the laws and regulations in setting ups its production operations in the country.
BYD Electronics is a very new entity in the e-cigarettes market. Since being spun from the parent BYD the company has focused on manufacturing electronic devices such as computers and smartphones among many others. It has done this so well that it was listed independently on the Hong Kong Stock Exchange.
What many people don’t know is that BYD electronics has been planning to enter the E-cigarette market since 2018. Already it has done several studies and tests to develop its products. Its patent application was done in 2020 meaning that most of the groundwork is already done. To test the waters the company launched its “BEEM CORE brand logo for its ceramic atomizing technology back in 2021.
When the company begins manufacturing and selling its e-cigarette products it will have to compete with Smoore International which is the market leader in the e-cigarette market. A 2021 Frost and Sullivan report indicates that Smoore International controls about 22.8 of the global e-cigarettes market. This is more than the total market share of the next four companies. However, with technologies rapidly changing and many newcomers chipping at the Smoore dominance, the executives of BYD electronics feel that the company has a chance of curving a niche for itself in the growing vaping market.
BYD electronics’ entry into the e-cigarettes market could not have come at a better time. China has been actively setting up policies and protocols to manage the vaping market in the country. Already this year the country rolled out the Administration of Electronic Cigarettes and the national standard. This standard required companies to obtain licenses before operating in this niche. So, fare more than 130 business has obtained the license.