The continuously rising shipping prices have constrained the overseas plans of automotive companies, forcing companies like BYD to take matters into their own hands and achieve self-sufficiency.
According to data from the China Association of Automobile Manufacturers (CAAM), in the first half of this year, China's automobile exports reached 2.14 million vehicles, a dramatic year-on-year increase of 75.7%. Among them, passenger car exports reached 1.78 million vehicles, an 88.4% increase compared to the same period last year. The export of new energy vehicles reached 534,000 vehicles, surging by 160%.
BYD (002594: SZ), with its product strength, has become a focus of attention. In the first half of 2023, BYD's sales of new energy vehicles reached 1.2556 million vehicles, ranking first globally and occupying nearly 40% of the domestic market, making it the sales champion in China. In this context, BYD is accelerating its overseas market expansion.
Wang Chuanfu, BYD's Chairman, publicly stated in November 2022, that the company will further strengthen its global market presence and promote the internationalization of the passenger car industry through a "global for global" approach.
Since the beginning of 2023, BYD has been accelerating its overseas expansion. Its passenger cars have successfully entered major markets in Europe, Southeast Asia, the Middle East, Japan, Australia, and South America, and has established factories in Thailand, Vietnam, Brazil, and other locations.
Furthermore, BYD started disclosing overseas sales data for new energy vehicles in the second half of 2022, and in November and December, it achieved monthly sales of over 10,000 units of new energy passenger cars. In the whole of last year, the cumulative export of passenger cars reached 55,916 units, a year-on-year increase of 307.2%.
However, faced with the expanding overseas market and high transportation costs, BYD has not remained idle and has chosen to "build its own ships", which is a crucial step in supporting its overseas expansion strategy. BYD's "shipbuilding" plan was first revealed in July 2022. According to reports, BYD plans to build 6 to 8 LNG dual-fuel pure car and truck carriers (PCTCs) with a capacity of 7,700 vehicles each. Delivery is expected to start after 2025.
Although BYD has remained silent on this matter, relevant news continues to emerge. In December of last year, BYD placed an order for four 9,400-vehicle capacity dual-fuel car carriers. Earlier this year, according to official information from China Shipbuilding Group's Guangzhou Shipyard International, two orders for BYD Group's 7,000-vehicle dual-fuel PCTCs were successfully finalized.
Public information shows that BYD's 7,000-vehicle dual-fuel car carriers have a total length of 200 meters, a beam of 38 meters, a designed draft of 9 meters, a designed speed of 18.5 knots, and adopt a natural gas (LNG)/fuel dual-fuel propulsion system. They meet the requirements of smart ships and are equipped with battery systems and shaft generators for the first time. They also incorporate energy-saving devices, anti-fouling coatings, and various energy-saving measures. The cost of each vessel is estimated to be around USD 90-93 million.
In addition to BYD, other automakers such as Chery Automobile are also making plans to build car carriers. Domestic companies like SAIC Motor and NIO are also planning to construct car carriers. Overseas automakers like Toyota and Nissan, as well as Japanese car manufacturers, also have their own car transportation shipping companies and fleets.
Although the shipbuilding plan is still a while away from being put into use, there is no doubt that this self-sufficient strategy will create more favorable conditions for BYD and greatly promote the increase in its automobile export volume.