Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Why BYD is breaking into shipping

Jan 31, 2024 - technologyreview.com
Chinese electric vehicle (EV) manufacturer BYD is venturing into the sea freight business to transport its cars from China to overseas markets. The company is assembling a fleet of at least eight car-carrier ships to transport its cars to Europe, South America, and other markets. This move comes as BYD's export business has been expanding significantly, with the company selling 3 million electric cars and plug-in hybrid models in 2023, up from 1.8 million in 2022.

However, the lack of car-carrier ships internationally has been a hurdle for the company. High costs and technological challenges in making ships greener have led to a rise in costs to hire a ship that can transport Chinese EVs abroad. To overcome this, BYD and other Chinese companies like SAIC Motor are building, chartering, and managing their own fleets of ships. Despite the promising future, the article warns that building and maintaining these massive ships could be risky and expensive if their car sales don't keep up.

Key takeaways:

  • Chinese electric-vehicle maker BYD is starting a sea freight business to transport its cars from factories in China to sell in Europe, South America, and other markets.
  • BYD sold 3 million electric cars and plug-in hybrid models in 2023, up from 1.8 million in 2022, becoming the world’s top-selling EV company in the fourth quarter of 2023.
  • The lack of car-carrier ships internationally has been a major obstacle for Chinese EV companies, leading to companies like BYD and SAIC Motor building, chartering, and managing their own fleets of ships.
  • Despite the promising future, building and maintaining these massive ships is a risky, expensive business if their car sales don’t keep up, as evidenced by the cautionary tale of Chinese car company Chery.
View Full Article

Comments (0)

Be the first to comment!