BYD is said to be spending close to $600 million for 6 of the largest car-carrying ships ever built.
According to a media report, the demand for affordable China-made cars is currently so high that the country doesn’t have enough ships to fulfil the export numbers.
The report suggests that the export demand for Chinese cars has quadrupled in the last 3 years. The exports increased by 86% in July, allowing China to surpass Japan as the leading exporter of vehicles this year.
With the domestic market in China shifting to electric vehicles, a significant number of ICE-powered cars are being unsold. Reports suggest that many of these cars are being diverted to foreign markets at low prices. Chinese manufacturers have seized a sizeable market share in Russia after many Western car brands withdrew from the country in response to the ongoing Ukraine war.
Chinese brands have also made significant in-roads in various other markets as well, including Southeast Asia, South America and Mexico. Also, MG (owned by SAIC) has become one of the best-selling options in the new car market in Australia. The recently concluded Munich Motor Show also reportedly had twice as many Chinese automakers compared to the last time it was held in 2021.
While Chinese cars are making significant in-roads in various markets, reports state that their only major holdup is the lack of ships available to transport their vehicles across the globe. Daniel Nash, Head of vehicle carriers, VesselsValue, stated that nearly all their 170 pending car-carrying vessel orders are for Chinese automakers.
BYD is said to be spending close to $600 million for 6 of the largest car-carrying ships ever built. These ships are expected to be delivered in the next 3 years.
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