BYD enters shipping business to export cars from China to the world

• BYD, the world’s largest EV manufacturer, is entering the shipping business.
• The company purchased its first ship to transport cars around the world.
• BYD Explorer 1 set sail on its maiden voyage this month, leading a fleet of 5,000 BYD vehicles.

BYD, the world’s largest electric car maker, is not only hitting the roads in a big way, but also taking to the open seas.

The Chinese company and Tesla rival set sail in January with 5,000 cars on board its first car carrier, named BYD Explorer No.1.

This new ship marks a major milestone for BYD. This is because reducing the cost of bringing electric vehicles to the masses will help the company meet the growing global demand for electric vehicles.

According to MIT Technology Review, China has access to only a small portion (2.8%) of the country’s car carrier fleet. Car giants like Japan’s Toyota already have fleets in place to transport their cars around the world.

BYD’s new roll-on-roll-off (RORO) airline is currently on its way to India after stopping in the Netherlands and Germany, according to Reuters.

The company said in a press release that it plans to add seven more vessels over the next two years.

BYD sold about 3 million cars in 2023, Reuters reported, citing the China Passenger Car Association. Most of the cars were sold to buyers in China, but the company said it exported about 243,000 cars to countries such as Australia, Brazil and Israel.

Even with these limited exports, it was enough to surpass Tesla for the first time in the fourth quarter. Demand for EVs in key regions such as Europe and the United States has fallen significantly in the past few months, but auto industry experts say much of this demand slowdown is due to electric vehicles and customers adapting to a tougher economic environment. It has to do with the issue of affordability. .

This could usher in the next phase of China’s long-awaited takeover of the electric vehicle market, with BYD’s more affordable models particularly well-positioned to meet US demand. be.

Demand for EVs hasn’t dried up in the U.S., but it has changed over the past year as customers prioritize price and practicality over style and performance. This presents a great opportunity for BYD, especially if it can keep sticker prices low by reducing shipping costs.