Two of China’s largest automakers have purchased their own vessels to ensure that their cars are delivered from their factories on the mainland to those who want to drive them.
BYD, which makes only electric and hybrid vehicles, ordered at least six ships in October, each with 7,700 cars worth 5 billion yuan (700 million yuan), to avoid last-mile supply chain swells. $10 million), we are going the extra mile to make sure it can be transported.
State-owned SAIC Motor Corp., which already operates the world’s fifth-largest shipping fleet through its transportation arm, SAIC Anji Logistics, is bidding for seven new carriers, each capable of accommodating 8,900 vehicles.
Representatives for SAIC and BYD declined to comment.
The ship in question isn’t expected to be online for several years yet, so it’s a bold bet on sustained global consumer demand for Chinese cars.
China recently overtook Germany to become the world’s second largest car exporter, exporting about 2.6 million cars abroad in the first 10 months of 2022, surpassing 2021’s export volume.
Even an unexpected drop in demand for Chinese goods in October was unlikely to derail its upward trajectory as exports of cars and chassis surged 60% year-on-year to 352,000 units, or a record $7.1 billion. There was no.
But while car exports are booming, “the number of car carriers in the world has barely increased,” said the head of Clarkson’s Research Services in Shanghai, a division of one of the world’s largest shipbuilders. One Xing Yue said.
Transport costs are skyrocketing and currently “much investment is being poured into building new ships for transporting vehicles because of this supply and demand mismatch”.