Aye, aye captain: EV boom spurts demand for massive car-carrying ships in China
Electric vehicles (EVs) are fast taking over global roads. And because production facilities for brands are spread far and wide, ferrying EVs from one part of the map to another is assuming far greater significance than before. As such, fresh orders for massive car-carrying cargo ships are coming in hot and fast, especially in China, the world's largest EV manufacturer and market.
Chinese EV-making companies have largely focused on the enormous local market to establish a foothold. But this is now changing with companies like BYD, SAIC Motor and Chery Automobile increasing global presence. Made-in-China EVs are becoming a common sight in many European markets even as global brands like Tesla and Volkswagen also concentrate on manufacturing in China for foreign shores owing to the cost-effective supply chain here. As such, the need to ship vehicles manufactured here to distant lands is on the rise.
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Reuters reports that China is all set to have the fourth-largest fleet of car-carrying ships in the world by 2028. It is currently at eight position with 33 such ships. Leading the way is Japan with 283 ships, Norway (102), South Korea (72) and Isle of Man (61). The same report highlights that there are orders for 47 new ships in China which will add to the fleet available here, and significantly at that.
Build Your Dreams, one ship at a time
BYD (Build Your Dreams) has emerged as a leading player in the world of EVs and is competing against Tesla for the title of being the world's largest electric car company. While a vast majority of its cars are sold within China, the company started on its global expansion project recently and in 2023, exported 240,000 cars to foreign shores. This was around eight per cent of its overall sales in the year and many predict this share will only rise. The Shenzen-based company has also opted to own the car-carrying cargo ships with the Explorer 1 recently completing its maiden voyage to Europe. Seven more such ships will soon be inducted into the fleet.
In the times to come, expect other brands to likely consider this option too and this is because shipping costs could potentially rise.
Overall, however, it is a good time to be in the ship-building business with Chinese shipyards in particular working overtime to meet with the spurt in demand.
