Last year, China became the biggest exporter of vehicles on earth, and its automotive industry is only set to grow from there. This month, the first Chinese-built cargo ship built explicitly for vehicle exports set sail and is bound for Europe.
The BYD Explorer No. 1 can transport up to 7,000 vehicles and, as the name implies, was commissioned by BYD. The electrified vehicle manufacturer’s inaugural chartered cargo vessel is under the management of Zodiac Maritime Ltd. and was constructed by International Marine Containers Group Co.
The ship is an integral component of BYD’s growth strategy, as the automaker holds the title of China’s top-selling auto brand. Nevertheless, despite outselling Tesla in electric vehicle sales during the fourth quarter of 2023, BYD remained the second-largest EV manufacturer on earth for the full year.
Read: Move Over Japan, China Poised To Be World’s Top Car Exporter
As part of its plan to become number one, it will expand its overseas sales, and is attempting to break into major car buying markets, such as Europe, where the BYD Explorer No. 1 is headed on its maiden voyage, reports Bloomberg. The ship set sail in Longkou, a port city in northeastern China, and stopped in Yantai on January 9. Now it is headed for Shenzen, where BYD is headquartered, and from there is bound for Europe.
Ironically, it is once the ship has landed in Europe that BYD can expect some headwinds. The growth of the Chinese auto industry has prompted the continent’s governments to explore subsidizing their own industry, and to explore tariffs against Chinese automakers.
Still, the launch of BYD Explorer No. 1 has arrived at an important time for the automaker. The Financial Times reports that a shortage of ships — which stems from the decision to scrap older vessels during the pandemic — has led to rising charter prices, increasing export costs.
The BYD Explorer No. 1 has a cruising range of 15,800 nautical miles, and is powered, in part, by natural gas, which is said to be greener than the fuel traditionally used by cargo ships.
